Wall Street Zen Upgrades Macy's (NYSE:M) to "Buy"

Key Points

• Wall Street Zen upgraded Macy's (NYSE:M) from a "hold" to a "buy" rating in a report released Saturday, adding to mixed broker commentary on the stock.
• Despite that upgrade, the consensus from analysts remains a "Reduce" with a consensus price target of $18.90 and an analyst breakdown of 1 Buy, 11 Hold and 2 Sell.
• Macy's recently beat quarterly EPS estimates ($1.67 vs. $1.55) while revenue fell 1.7% year-over-year to $7.92 billion; the stock trades around $19.53 with a P/E of 8.42 and a market cap of about $5.15 billion.

Macy's (NYSE:M - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

Several other brokerages have also weighed in on M. Zacks Research raised Macy's from a "strong sell" rating to a "hold" rating in a research report on Monday, April 13th. Telsey Advisory Group reissued a "market perform" rating and set a $20.00 target price on shares of Macy's in a research report on Wednesday, April 1st. Jefferies Financial Group reissued a "buy" rating and set a $22.00 target price on shares of Macy's in a research report on Wednesday, March 18th. TD Cowen cut their target price on Macy's from $21.00 to $20.00 and set a "hold" rating on the stock in a research report on Thursday, March 19th. Finally, Citigroup cut their target price on Macy's from $24.00 to $18.00 and set a "neutral" rating on the stock in a research report on Thursday, March 19th. One equities research analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $18.90.

Macy's Price Performance

M stock opened at $19.53 on Friday. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.49 and a quick ratio of 0.50. The firm has a market capitalization of $5.15 billion, a P/E ratio of 8.42 and a beta of 1.51. The business's 50-day moving average is $19.19 and its two-hundred day moving average is $20.24. Macy's has a 1 year low of $10.54 and a 1 year high of $24.41.

Macy's (NYSE:M - Get Free Report) last posted its quarterly earnings results on Wednesday, March 18th. The company reported $1.67 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.12. The company had revenue of $7.92 billion for the quarter, compared to analyst estimates of $7.48 billion. Macy's had a return on equity of 14.22% and a net margin of 2.84%.Macy's's revenue for the quarter was down 1.7% compared to the same quarter last year. During the same quarter last year, the company earned $1.80 EPS. Analysts anticipate that Macy's will post 2.39 earnings per share for the current fiscal year.

Insider Transactions at Macy's

In related news, EVP Tracy M. Preston sold 5,271 shares of the firm's stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $17.92, for a total transaction of $94,456.32. Following the transaction, the executive vice president owned 28,773 shares in the company, valued at $515,612.16. This trade represents a 15.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Olivier Bron sold 7,228 shares of the firm's stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $17.92, for a total value of $129,525.76. Following the transaction, the chief executive officer owned 21,590 shares in the company, valued at $386,892.80. This represents a 25.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 94,967 shares of company stock worth $1,705,276. 1.05% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Strengthening Families & Communities LLC purchased a new position in Macy's during the 4th quarter worth approximately $28,000. V Square Quantitative Management LLC purchased a new position in Macy's during the 4th quarter worth approximately $29,000. Smartleaf Asset Management LLC grew its stake in Macy's by 51.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company's stock worth $34,000 after buying an additional 526 shares during the last quarter. Cullen Frost Bankers Inc. purchased a new position in Macy's during the 3rd quarter worth approximately $31,000. Finally, CIBC Private Wealth Group LLC grew its stake in Macy's by 35.9% during the 4th quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company's stock worth $41,000 after buying an additional 486 shares during the last quarter. Hedge funds and other institutional investors own 87.36% of the company's stock.

About Macy's

Macy's, Inc is a leading American omnichannel retailer operating under the Macy's brand, as well as specialty divisions Bloomingdale's and Bluemercury. The company's retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy's seeks to deliver a seamless shopping experience that blends in-store service with online convenience.

The company's product assortment spans men's, women's and children's clothing, beauty and personal care products, housewares and home décor.

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