Macy’s Inc (M) Cut to Sell at Zacks Investment Research
Zacks Investment Research lowered shares of Macy’s Inc (NYSE:M) from a hold rating to a sell rating in a research note published on Tuesday, August 8th.
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.”
Several other equities research analysts have also recently weighed in on M. Vetr cut Macy’s from a buy rating to a hold rating and set a $30.62 target price for the company. in a report on Thursday, April 20th. Wunderlich reiterated a buy rating and issued a $24.00 target price on shares of Macy’s in a report on Friday, May 5th. Gordon Haskett initiated coverage on Macy’s in a report on Tuesday, May 9th. They issued a hold rating and a $29.00 target price for the company. Jefferies Group LLC reiterated a hold rating and issued a $27.00 target price on shares of Macy’s in a report on Thursday, May 11th. Finally, Telsey Advisory Group lowered their target price on Macy’s from $36.00 to $30.00 and set an outperform rating for the company in a report on Friday, May 12th. Three investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. Macy’s has a consensus rating of Hold and a consensus price target of $29.74.
Shares of Macy’s (NYSE:M) traded down 0.66% during trading on Tuesday, reaching $19.49. The company’s stock had a trading volume of 10,487,634 shares. The stock has a market cap of $5.94 billion, a price-to-earnings ratio of 8.86 and a beta of 0.84. Macy’s has a one year low of $19.35 and a one year high of $45.41. The company has a 50-day moving average price of $22.46 and a 200-day moving average price of $26.52. Macy’s also saw some unusual options trading on Wednesday. Investors bought 813 put options on the stock. This is an increase of approximately 166% compared to the typical daily volume of 306 put options.
Macy’s (NYSE:M) last announced its quarterly earnings data on Thursday, August 10th. The company reported $0.48 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.45 by $0.03. The company had revenue of $5.55 billion for the quarter, compared to the consensus estimate of $5.52 billion. Macy’s had a return on equity of 21.38% 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 quarter in the prior year, the company posted $0.51 EPS. On average, equities research analysts forecast that Macy’s will post $3.38 earnings per share for the current fiscal year.
In other Macy’s news, insider Jeffrey Gennette purchased 13,085 shares of the stock in a transaction on Monday, June 12th. The shares were bought at an average price of $22.95 per share, for a total transaction of $300,300.75. Following the completion of the transaction, the insider now owns 89,053 shares of the company’s stock, valued at approximately $2,043,766.35. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director William H. Lenehan purchased 4,390 shares of the stock in a transaction on Thursday, June 15th. The shares were acquired at an average price of $22.72 per share, for a total transaction of $99,740.80. Following the transaction, the director now directly owns 5,968 shares of the company’s stock, valued at approximately $135,592.96. The disclosure for this purchase can be found here. 1.40% of the stock is owned by company insiders.
A number of institutional investors have recently modified their holdings of the company. Toronto Dominion Bank increased its position in shares of Macy’s by 25.7% in the second quarter. Toronto Dominion Bank now owns 103,151 shares of the company’s stock worth $2,397,000 after buying an additional 21,069 shares in the last quarter. Dynamic Technology Lab Private Ltd increased its position in shares of Macy’s by 66.3% in the second quarter. Dynamic Technology Lab Private Ltd now owns 38,430 shares of the company’s stock worth $892,000 after buying an additional 15,324 shares in the last quarter. Wealthsource Partners LLC acquired a new position in shares of Macy’s during the second quarter worth about $374,000. Nomura Holdings Inc. acquired a new position in shares of Macy’s during the second quarter worth about $1,859,000. Finally, Raymond James Financial Services Advisors Inc. increased its position in shares of Macy’s by 3.5% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 20,924 shares of the company’s stock worth $486,000 after buying an additional 701 shares in the last quarter. Institutional investors own 84.21% of the company’s stock.
Macy’s Company Profile
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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