Macy’s (M) Shares Gap Down After Analyst Downgrade

Macy’s (M) Shares Gap Down  After Analyst Downgrade

Macy’s Inc (NYSE:M)’s share price gapped down before the market opened on Friday after Royal Bank of Canada lowered their price target on the stock to $29.00. The stock had previously closed at $25.85, but opened at $26.11. Royal Bank of Canada currently has a sector perform rating on the stock. Macy’s shares last traded at $25.88, with a volume of 9361270 shares changing hands.

A number of other equities research analysts have also recently commented on M. Credit Suisse Group reiterated a “neutral” rating and issued a $26.00 target price (down from $34.00) on shares of Macy’s in a research report on Friday. Gordon Haskett cut shares of Macy’s from a “buy” rating to a “hold” rating in a research report on Thursday. Bank of America cut shares of Macy’s from a “neutral” rating to an “underperform” rating in a research report on Thursday. ValuEngine upgraded shares of Macy’s from a “strong sell” rating to a “sell” rating in a research report on Wednesday, January 2nd. Finally, Atlantic Securities cut shares of Macy’s from a “neutral” rating to an “underweight” rating and reduced their target price for the company from $39.00 to $28.00 in a research report on Thursday, December 6th. Five analysts have rated the stock with a sell rating, eleven have assigned a hold rating and six have assigned a buy rating to the stock. Macy’s has an average rating of “Hold” and an average price target of $33.26.

In other news, Director William H. Lenehan purchased 3,154 shares of the firm’s stock in a transaction that occurred on Friday, November 16th. The stock was bought at an average price of $31.74 per share, for a total transaction of $100,107.96. Following the completion of the purchase, the director now directly owns 11,214 shares of the company’s stock, valued at $355,932.36. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President Harry A. Lawton III sold 200,000 shares of Macy’s stock in a transaction that occurred on Friday, November 16th. The stock was sold at an average price of $33.09, for a total transaction of $6,618,000.00. Following the completion of the transaction, the president now owns 226,038 shares of the company’s stock, valued at approximately $7,479,597.42. The disclosure for this sale can be found here. Company insiders own 2.36% of the company’s stock.

Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc raised its holdings in Macy’s by 6.5% during the third quarter. Vanguard Group Inc now owns 35,205,128 shares of the company’s stock worth $1,222,675,000 after purchasing an additional 2,133,597 shares in the last quarter. BlackRock Inc. raised its holdings in Macy’s by 1.6% during the third quarter. BlackRock Inc. now owns 28,532,647 shares of the company’s stock worth $990,939,000 after purchasing an additional 460,868 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Macy’s by 88.7% in the 3rd quarter. AQR Capital Management LLC now owns 11,960,108 shares of the company’s stock valued at $415,374,000 after acquiring an additional 5,620,910 shares during the period. Bank of New York Mellon Corp increased its holdings in shares of Macy’s by 0.3% in the 2nd quarter. Bank of New York Mellon Corp now owns 9,827,606 shares of the company’s stock valued at $367,847,000 after acquiring an additional 25,971 shares during the period. Finally, FMR LLC increased its holdings in shares of Macy’s by 2.1% in the 2nd quarter. FMR LLC now owns 7,740,157 shares of the company’s stock valued at $289,715,000 after acquiring an additional 162,184 shares during the period. Institutional investors own 91.04% of the company’s stock.

The firm has a market cap of $9.75 billion, a P/E ratio of 6.86, a price-to-earnings-growth ratio of 0.91 and a beta of 0.67. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.24 and a current ratio of 1.35.

Macy’s (NYSE:M) last announced its earnings results on Wednesday, November 14th. The company reported $0.27 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.13. The business had revenue of $5.40 billion for the quarter, compared to analysts’ expectations of $5.40 billion. Macy’s had a net margin of 6.72% and a return on equity of 22.33%. The company’s quarterly revenue was up 2.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.23 EPS. Research analysts predict that Macy’s Inc will post 4.09 EPS for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, January 2nd. Shareholders of record on Friday, December 14th were paid a $0.3775 dividend. The ex-dividend date was Thursday, December 13th. This represents a $1.51 annualized dividend and a yield of 5.83%. Macy’s’s dividend payout ratio is currently 40.05%.

About Macy’s (NYSE:M)

Macy's, Inc, an omni-channel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. As of April 4, 2018, it operated approximately 690 department stores under the Macy's and Bloomingdale's brands; 160 specialty stores under the Bloomingdale's The Outlet, Bluemercury, and Macy's Backstage brands in the District of Columbia, Guam, and Puerto Rico; and Websites, including macys.com, bloomingdales.com, and bluemercury.com.

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