Macy's (NYSE:M) Hits New 1-Year Low: What's Next?

Macy's, Inc. (NYSE:M) reached a new 52-week low during trading on Monday. The stock fell to as low as $12.48 before recovering slightly to $12.62, with a trading volume of 448,077 shares. It previously closed at $12.81.

Analyst Insights

Several analysts have provided their opinions on Macy's stock. Morgan Stanley has set a price target of $14.00 for the shares in a report dated March 10. Benchmark upgraded Macy's to a "strong-buy" rating on February 3. Conversely, Gordon Haskett downgraded the stock from an "accumulate" to a "hold" rating on March 6. Additionally, JPMorgan Chase & Co. downgraded Macy's from "overweight" to "neutral," reducing its price target from $19.00 to $14.00. New Street Research also stated a price objective of $13.00. Overall, one analyst has rated the stock as a sell, ten recommended holding, two suggested buying, and one recommended a strong buy. According to MarketBeat, the current average analyst rating is "Hold," with a consensus price target of $15.30.

Macy's Stock Performance

The financial metrics for Macy's indicate a quick ratio of 0.17, a current ratio of 1.26, and a debt-to-equity ratio of 0.67. The stock's fifty-day moving average is $14.38, while the 200-day moving average is $15.28. Macy's market capitalization stands at $3.53 billion, with a price-to-earnings (P/E) ratio of 21.55 and a beta of 2.07.

Earnings and Dividend Updates

The company recently announced its quarterly earnings results on March 6, revealing an earnings per share (EPS) of $1.80, which exceeded analysts' expectations of $1.55 by $0.25. Revenue for the quarter was $7.77 billion, just ahead of the anticipated $7.76 billion. Macy's also reported a return on equity of 21.99% and a net margin of 0.73%. For the current year, analysts predict that Macy's will achieve an EPS of 2.39.

Furthermore, Macy's has increased its quarterly dividend, which will be distributed on April 1. Shareholders recorded on March 14 will receive a dividend of $0.1824, up from the previous quarterly rate of $0.17. This annualizes to a dividend of $0.73, yielding 5.74%. The current payout ratio stands at 35.44%.

Insider Transactions

In other news, CEO Antony Spring sold 3,124 shares of Macy's stock on March 25, at an average price of $13.74, totaling approximately $42,923.76. After this transaction, Spring retains ownership of 272,680 shares, valued at about $3,746,623.20, marking a 1.13% decrease in his holdings. Similarly, EVP Adrian V. Mitchell sold 3,489 shares on the same day for approximately $47,938.86, after which he holds 116,165 shares valued at around $1,596,107.10, reflecting a 2.92% decline in holdings. Over the past 90 days, insiders have sold 7,013 shares worth about $96,359, and insiders presently own 2.77% of Macy's stock.

Investments by Institutions

Recently, institutional investors and hedge funds have shifted their positions in Macy's. Quest Partners LLC acquired a new stake valued at $35,000 during the third quarter. Charles Schwab Investment Management increased its holdings by 4.7%, owning 2,661,876 shares worth $41,765,000 after acquiring an additional 118,626 shares. FMR LLC raised its stake by 4.4%, now holding 4,691,591 shares valued at $73,611,000 after buying an additional 195,880 shares in the last quarter. Other firms, including BNP Paribas Financial Markets and Zurcher Kantonalbank Zurich Cantonalbank, have also grown their positions in Macy's, indicating a strong interest from institutional investors who collectively own 87.36% of the company's stock.

About Macy's

Macy's, Inc. operates in the retail sector, offering a range of apparel, accessories, cosmetics, home furnishings, and other consumer goods through brands including Macy's, Bloomingdale's, and Bluemercury. The company's product line features men's, women's, and children's clothing, along with shoes, fragrances, and home products.

Should You Consider Investing in Macy's?

Before making any investment decisions regarding Macy's, potential investors should take the time to compare analyst recommendations and consider alternatives. Although Macy's holds a "Hold" rating, you might want to explore other stocks that are generating significant interest among analysts.

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