Zacks Investment Research cut shares of Macy’s Inc (NYSE:M) from a hold rating to a sell rating in a report issued on Tuesday morning.
According to Zacks, “Macy’s waning top and bottom-line performance has been a major concern. As a result, the stock has been hit hard and underperformed the industry in the past six months. Challenging retail landscape, aggressive pricing strategy, waning mall traffic and increased online competition have been major deterrents. Macy’s warned investors that its margins may continue to feel the pinch. Management now envisions fiscal 2017 gross margin to contract 60–80 basis points, while for the second quarter it expects the same to shrivel by 100 basis points from the year-ago period. Macy’s continues to project comps on an owned basis to decrease in the band of 2.2–3.3% and sales to decline in the range of 3.2–4.3% in fiscal 2017. Nevertheless, Macy’s has announced slew of measures revolving around stores closures, cost containment, real estate strategy and investment in omnichannel capabilities to improve its performance.”
A number of other analysts have also recently weighed in on the company. Vetr upgraded Macy’s from a buy rating to a strong-buy rating and set a $30.62 price target on the stock in a research report on Thursday, May 11th. Wunderlich reissued a buy rating and issued a $24.00 price objective on shares of Macy’s in a research note on Friday, May 5th. Telsey Advisory Group reduced their price objective on Macy’s from $36.00 to $30.00 and set an outperform rating on the stock in a research note on Friday, May 12th. BidaskClub raised Macy’s from a sell rating to a hold rating in a research note on Wednesday, July 19th. Finally, Gordon Haskett assumed coverage on Macy’s in a research note on Tuesday, May 9th. They issued a hold rating and a $29.00 price objective on the stock. Two research analysts have rated the stock with a sell rating, nineteen have issued a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of Hold and an average price target of $30.84.
Macy’s (NYSE M) traded down 0.24% during mid-day trading on Tuesday, hitting $20.62. 12,503,939 shares of the stock were exchanged. The company has a 50-day moving average price of $22.86 and a 200-day moving average price of $26.87. Macy’s has a one year low of $20.16 and a one year high of $45.41. The company has a market cap of $6.28 billion, a P/E ratio of 9.37 and a beta of 0.84. Macy’s also was the target of some unusual options trading on Wednesday. Stock traders purchased 33,975 call options on the company. This represents an increase of 489% compared to the average volume of 5,766 call options.
Macy’s (NYSE:M) last released its quarterly earnings data on Thursday, August 10th. The company reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.03. The business had revenue of $5.55 billion for the quarter, compared to analysts’ expectations of $5.52 billion. Macy’s had a return on equity of 21.69% and a net margin of 2.71%. Macy’s’s quarterly revenue was down 5.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.51 earnings per share. On average, analysts predict that Macy’s will post $3.33 earnings per share for the current fiscal year.
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In other Macy’s news, insider Jeffrey Gennette purchased 13,085 shares of the stock in a transaction on Monday, June 12th. The stock was bought at an average cost of $22.95 per share, for a total transaction of $300,300.75. Following the completion of the acquisition, the insider now directly owns 89,053 shares of the company’s stock, valued at $2,043,766.35. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director William H. Lenehan purchased 4,390 shares of the stock in a transaction on Thursday, June 15th. The stock was acquired at an average price of $22.72 per share, with a total value of $99,740.80. Following the completion of the acquisition, the director now directly owns 5,968 shares of the company’s stock, valued at $135,592.96. The disclosure for this purchase can be found here. 1.40% of the stock is owned by corporate insiders.
Several large investors have recently made changes to their positions in the company. Penserra Capital Management LLC increased its stake in shares of Macy’s by 9.5% in the first quarter. Penserra Capital Management LLC now owns 3,680 shares of the company’s stock valued at $109,000 after buying an additional 320 shares during the period. Ffcm LLC increased its stake in shares of Macy’s by 251.6% in the second quarter. Ffcm LLC now owns 5,052 shares of the company’s stock valued at $120,000 after buying an additional 3,615 shares during the period. Financial Architects Inc increased its stake in shares of Macy’s by 254.5% in the second quarter. Financial Architects Inc now owns 5,850 shares of the company’s stock valued at $136,000 after buying an additional 4,200 shares during the period. Ropes Wealth Advisors LLC increased its stake in shares of Macy’s by 63.5% in the first quarter. Ropes Wealth Advisors LLC now owns 4,806 shares of the company’s stock valued at $142,000 after buying an additional 1,866 shares during the period. Finally, Edge Wealth Management LLC acquired a new stake in shares of Macy’s during the second quarter valued at about $142,000. Institutional investors own 84.30% of the company’s stock.
Macy’s, Inc is an omnichannel retail company operating stores, Websites and mobile applications under various brands, such as Macy’s, Bloomingdale’s and Bluemercury. The Company sells a range of merchandise, including apparel and accessories (men’s, women’s and children’s), cosmetics, home furnishings and other consumer goods.
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