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

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

Macy’s Inc (NYSE:M)’s share price gapped down prior to trading 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.

Several other equities analysts have also recently commented on M. ValuEngine upgraded Macy’s from a “strong sell” rating to a “sell” rating in a research note on Wednesday, January 2nd. Zacks Investment Research restated a “hold” rating and set a $43.00 price objective on shares of Macy’s in a research note on Wednesday, November 14th. Credit Suisse Group restated a “neutral” rating and set a $26.00 price objective (down from $34.00) on shares of Macy’s in a research note on Friday. Bank of America cut Macy’s from a “neutral” rating to an “underperform” rating in a research note on Thursday. Finally, Gordon Haskett cut Macy’s from a “buy” rating to a “hold” rating in a research note on Thursday. Five analysts have rated the stock with a sell rating, eleven have given a hold rating and six have assigned a buy rating to the stock. Macy’s currently has a consensus rating of “Hold” and an average target price of $33.26.

In other news, President Harry A. Lawton III sold 200,000 shares of the firm’s stock in a transaction 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 transaction, the president now directly owns 226,038 shares of the company’s stock, valued at $7,479,597.42. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director William H. Lenehan purchased 3,154 shares of the stock in a transaction dated Friday, November 16th. The shares were acquired at an average cost of $31.74 per share, for a total transaction of $100,107.96. Following the completion of the acquisition, the director now directly owns 11,214 shares of the company’s stock, valued at approximately $355,932.36. The disclosure for this purchase can be found here. 2.36% of the stock is owned by company insiders.

Several institutional investors and hedge funds have recently modified their holdings of M. State of Alaska Department of Revenue boosted its stake in Macy’s by 2.6% during the fourth quarter. State of Alaska Department of Revenue now owns 129,348 shares of the company’s stock valued at $3,850,000 after buying an additional 3,268 shares in the last quarter. Cerebellum GP LLC bought a new position in Macy’s during the fourth quarter valued at about $221,000. Cumberland Advisors Inc. bought a new position in Macy’s during the fourth quarter valued at about $974,000. Palo Capital Inc. bought a new position in Macy’s during the third quarter valued at about $691,000. Finally, Great Lakes Advisors LLC bought a new position in Macy’s during the third quarter valued at about $669,000. 91.04% of the stock is currently owned by institutional investors.

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

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

The business also recently declared a quarterly dividend, which was paid on Wednesday, January 2nd. Investors of record on Friday, December 14th were given a $0.3775 dividend. The ex-dividend date was Thursday, December 13th. This represents a $1.51 dividend on an annualized basis and a dividend yield of 5.83%. Macy’s’s dividend payout ratio (DPR) is 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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