Macy’s (NYSE:M) Trading Down 4.7% After Earnings Miss

Shares of Macy’s Inc (NYSE:M) were down 4.7% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $15.82 and last traded at $16.02, approximately 14,606,453 shares were traded during mid-day trading. An increase of 76% from the average daily volume of 8,317,522 shares. The stock had previously closed at $16.80.

The company reported $0.28 EPS for the quarter, missing the Zacks’ consensus estimate of $0.45 by ($0.17). The firm had revenue of $5.55 billion during the quarter, compared to analyst estimates of $5.55 billion. Macy’s had a return on equity of 20.66% and a net margin of 4.43%. The firm’s revenue for the quarter was down .5% on a year-over-year basis. During the same quarter last year, the business posted $0.70 earnings per share.

A number of brokerages have commented on M. Zacks Investment Research upgraded Macy’s from a “sell” rating to a “hold” rating in a research note on Thursday, May 16th. Deutsche Bank decreased their target price on Macy’s from $29.00 to $23.00 and set a “hold” rating for the company in a research note on Thursday. Goldman Sachs Group upgraded Macy’s from a “sell” rating to a “neutral” rating and decreased their target price for the company from $23.00 to $21.00 in a research note on Thursday, May 16th. Telsey Advisory Group restated a “market perform” rating and issued a $18.00 target price (down from $25.00) on shares of Macy’s in a research note on Thursday. Finally, JPMorgan Chase & Co. downgraded Macy’s from a “neutral” rating to an “underweight” rating in a research note on Wednesday. Five analysts have rated the stock with a sell rating, eleven have assigned a hold rating and four have assigned a buy rating to the company. The company has an average rating of “Hold” and an average target price of $24.92.

In other Macy’s news, Director Francis S. Blake acquired 10,000 shares of Macy’s stock in a transaction dated Wednesday, May 22nd. The stock was acquired at an average cost of $21.63 per share, for a total transaction of $216,300.00. Following the completion of the transaction, the director now owns 2,200 shares in the company, valued at approximately $47,586. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Paula A. Price sold 1,189 shares of the business’s stock in a transaction that occurred on Wednesday, July 10th. The stock was sold at an average price of $21.30, for a total value of $25,325.70. The disclosure for this sale can be found here. Insiders own 0.55% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the company. MidWestOne Financial Group Inc. bought a new stake in Macy’s during the second quarter worth approximately $1,417,000. Factorial Partners LLC raised its holdings in Macy’s by 85.6% during the second quarter. Factorial Partners LLC now owns 63,100 shares of the company’s stock worth $1,354,000 after purchasing an additional 29,100 shares in the last quarter. Voloridge Investment Management LLC raised its holdings in Macy’s by 17.2% during the second quarter. Voloridge Investment Management LLC now owns 632,454 shares of the company’s stock worth $13,572,000 after purchasing an additional 92,824 shares in the last quarter. Zacks Investment Management raised its holdings in Macy’s by 0.9% during the second quarter. Zacks Investment Management now owns 675,572 shares of the company’s stock worth $14,498,000 after purchasing an additional 5,962 shares in the last quarter. Finally, Nuveen Asset Management LLC bought a new stake in Macy’s during the second quarter worth approximately $24,810,000. Institutional investors and hedge funds own 90.71% of the company’s stock.

The stock has a market cap of $5.96 billion, a P/E ratio of 3.87, a PEG ratio of 0.83 and a beta of 0.55. The company has a fifty day moving average of $21.28 and a 200 day moving average of $22.89. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.42 and a quick ratio of 0.32.

Macy’s Company Profile (NYSE:M)

Macy's, Inc, an omnichannel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. As of April 1, 2019, it operated approximately 680 department stores under the Macy's and Bloomingdale's names; and 190 specialty stores, such as Bloomingdale's The Outlet, Bluemercury, Macy's Backstage, and STORY in 43 states, the District of Columbia, Guam, and Puerto Rico.

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