Shares of Macy’s, Inc. (NYSE: M) have received a consensus rating of “Hold” from fifteen brokerage firms currently covering the company, as reported by MarketBeat. One analyst has given a sell recommendation, while eleven have opted for hold, one for buy, and two for strong buy. The average twelve-month price target among these analysts stands at $15.75.
Several research firms have recently updated their ratings on Macy’s stock. On September 4, 2023, UBS Group increased its price target from $6.00 to $6.50 while maintaining a sell rating. In contrast, Zacks Research upgraded Macy’s from hold to strong buy on September 18, 2023. Similarly, Morgan Stanley raised its price target from $12.00 to $16.00, assigning an equal weight rating on the same day.
On October 6, 2023, the Goldman Sachs Group also adjusted its price objective from $14.50 to $16.50 and maintained a neutral rating. Most recently, Citigroup lifted its target price from $16.00 to $19.00, keeping a neutral stance on the stock in a research note dated November 19, 2023.
Institutional Investments Increase
A number of institutional investors have recently altered their positions in Macy’s stock. Victory Capital Management Inc. boosted its stake by 55.5% during the first quarter, now holding 365,451 shares worth approximately $4.59 million after acquiring an additional 130,457 shares. RWC Asset Management LLP purchased a new stake valued at around $80.87 million during the same period.
Other significant investments include Bayforest Capital Ltd, which acquired a new position worth $720,000, and US Bancorp DE, which increased its holdings by 6.7%, bringing its total to 19,624 shares valued at $246,000. Additionally, PNC Financial Services Group Inc. raised its position by 6.2%, now owning 25,399 shares worth $319,000. Overall, institutional investors currently own approximately 87.36% of Macy’s stock.
Macy’s Stock Performance and Financial Highlights
Macy’s shares opened at $22.41 on Monday, with a twelve-month low of $9.76 and a high of $22.93. The company holds a market capitalization of $6.02 billion and a price-to-earnings (P/E) ratio of 12.80. Its stock has a 50-day moving average of $18.85 and a 200-day average of $14.95. Additionally, Macy’s current ratio stands at 1.38, its quick ratio at 0.35, and the debt-to-equity ratio is 0.55.
Macy’s reported its quarterly earnings on September 3, 2023, announcing an earnings per share (EPS) of $0.41, exceeding analysts’ expectations of $0.19 by $0.22. The company achieved a net margin of 2.18% and a return on equity of 15.39%, with total revenue reaching $4.81 billion, surpassing expectations of $4.69 billion. This figure reflects a 2.5% decrease from the previous year.
Looking forward, Macy’s has projected its Q3 2025 EPS guidance between -$0.20 and $0.15, with guidance for the full fiscal year set at $1.70 to $2.05 EPS. Analysts anticipate that Macy’s will report an EPS of $2.39 for the current year.
Macy’s has also announced a quarterly dividend, which is scheduled to be paid on January 2, 2024. Shareholders of record on December 15, 2023, will receive a dividend of $0.1824 per share, representing an annualized dividend of $0.73 and a yield of 3.3%. The ex-dividend date is also set for December 15, 2023, and the company’s dividend payout ratio currently stands at 41.71%.
Macy’s, Inc. is a prominent retailer offering a wide range of products including apparel, accessories, cosmetics, and home furnishings. Its brands include Macy’s, Bloomingdale’s, and Bluemercury, catering to various consumer needs across multiple demographics.
