Macy’s (NYSE:M) Shares Gap Up Following Better-Than-Expected Earnings

Macy’s, Inc. (NYSE:M) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $12.04, but opened at $12.50. Macy’s shares last traded at $12.04, with a volume of 4,191,156 shares traded.

The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.15 by $0.01. Macy’s had a return on equity of 21.99% and a net margin of 0.73%. During the same period in the prior year, the business earned $0.27 earnings per share. Macy’s’s quarterly revenue was down 5.1% on a year-over-year basis.

Macy’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 1st. Shareholders of record on Friday, June 13th will be paid a $0.1824 dividend. The ex-dividend date of this dividend is Friday, June 13th. This represents a $0.73 annualized dividend and a yield of 6.01%. Macy’s’s dividend payout ratio is presently 35.44%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Morgan Stanley reissued a “negative” rating on shares of Macy’s in a report on Tuesday, May 6th. Benchmark upgraded shares of Macy’s to a “strong-buy” rating in a research note on Monday, February 3rd. JPMorgan Chase & Co. decreased their price target on shares of Macy’s from $14.00 to $13.00 and set a “neutral” rating for the company in a research note on Monday, April 14th. Wall Street Zen upgraded shares of Macy’s from a “hold” rating to a “buy” rating in a research note on Friday, February 14th. Finally, Citigroup decreased their price target on Macy’s from $14.00 to $11.00 and set a “neutral” rating for the company in a report on Thursday, April 17th. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating, one has issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, Macy’s presently has an average rating of “Hold” and a consensus price target of $13.30.

Insiders Place Their Bets

In other Macy’s news, EVP Tracy M. Preston sold 2,780 shares of the company’s stock in a transaction dated Monday, March 31st. The stock was sold at an average price of $12.68, for a total transaction of $35,250.40. Following the completion of the sale, the executive vice president now directly owns 4,723 shares in the company, valued at $59,887.64. This represents a 37.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Antony Spring sold 20,868 shares of the stock in a transaction on Monday, March 31st. The shares were sold at an average price of $12.68, for a total value of $264,606.24. Following the completion of the sale, the chief executive officer now owns 321,244 shares of the company’s stock, valued at approximately $4,073,373.92. This represents a 6.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 41,751 shares of company stock worth $537,790. Insiders own 2.77% of the company’s stock.

Institutional Investors Weigh In On Macy’s

A number of hedge funds have recently bought and sold shares of the business. Summit Securities Group LLC boosted its holdings in Macy’s by 106.0% in the first quarter. Summit Securities Group LLC now owns 2,200 shares of the company’s stock worth $28,000 after purchasing an additional 38,800 shares during the period. Headlands Technologies LLC acquired a new position in shares of Macy’s in the 1st quarter valued at about $29,000. Trifecta Capital Advisors LLC acquired a new position in shares of Macy’s in the 4th quarter valued at about $34,000. Jones Financial Companies Lllp boosted its stake in Macy’s by 82.1% in the fourth quarter. Jones Financial Companies Lllp now owns 2,149 shares of the company’s stock valued at $36,000 after acquiring an additional 969 shares during the period. Finally, Kestra Investment Management LLC acquired a new position in Macy’s in the fourth quarter valued at approximately $38,000. Institutional investors and hedge funds own 87.36% of the company’s stock.

Macy’s Stock Performance

The company has a quick ratio of 0.17, a current ratio of 1.26 and a debt-to-equity ratio of 0.67. The stock has a 50 day simple moving average of $11.79 and a 200 day simple moving average of $14.10. The company has a market capitalization of $3.38 billion, a price-to-earnings ratio of 20.62 and a beta of 1.77.

Macy’s Company Profile

Macy’s, Inc engages in the retail of apparel, accessories, cosmetics, home furnishings, and other consumer goods. The firm’s brands include Macy’s, Bloomingdale’s, and Bluemercury. It offers men’s, women’s, and children’s apparel, women’s accessories, intimate apparel, shoes, cosmetics, fragrances, as well as home and miscellaneous products.