Zacks Investment Research cut shares of Macy’s Inc (NYSE:M) from a hold rating to a sell rating in a research report sent to investors on Wednesday 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 had warned investors that its margins may continue to feel the pinch. Management now envisions fiscal 2017 gross margin to contract 50–70 bps compared with 60–80 bps viewed earlier due to better-than-expected second-quarter results. However, 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.”
Other equities research analysts have also recently issued reports about the stock. UBS AG reissued a neutral rating and set a $21.00 price target (down from $23.00) on shares of Macy’s in a research report on Monday, August 14th. BidaskClub raised shares of Macy’s from a sell rating to a hold rating in a research report on Wednesday, July 19th. Jefferies Group LLC reissued a hold rating and set a $21.00 price target (down from $24.00) on shares of Macy’s in a research report on Friday, August 11th. BMO Capital Markets set a $36.00 price target on shares of Macy’s and gave the stock a buy rating in a research report on Friday, August 11th. Finally, Wedbush reissued a hold rating on shares of Macy’s in a research report on Monday, July 31st. Two investment analysts have rated the stock with a sell rating, sixteen have given a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. The company presently has an average rating of Hold and an average target price of $26.92.
Macy’s (M) traded down 0.20% during trading on Wednesday, reaching $20.20. 8,414,118 shares of the company’s stock traded hands. Macy’s has a 12 month low of $19.32 and a 12 month high of $45.41. The firm has a 50 day moving average price of $21.36 and a 200-day moving average price of $23.70. The firm has a market cap of $6.15 billion, a PE ratio of 9.18 and a beta of 0.87.
Macy’s (NYSE:M) last issued its quarterly earnings results on Thursday, August 10th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.45 by $0.03. Macy’s had a net margin of 2.71% and a return on equity of 21.38%. The firm had revenue of $5.55 billion for the quarter, compared to analysts’ expectations of $5.52 billion. During the same period in the previous year, the firm posted $0.51 EPS. The company’s revenue for the quarter was down 5.4% on a year-over-year basis. On average, analysts forecast that Macy’s will post $3.39 earnings per share for the current fiscal year.
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The company also recently declared a quarterly dividend, which was paid on Monday, October 2nd. Stockholders of record on Friday, September 15th were issued a dividend of $0.3775 per share. This represents a $1.51 dividend on an annualized basis and a dividend yield of 7.48%. The ex-dividend date was Thursday, September 14th. Macy’s’s dividend payout ratio (DPR) is presently 68.64%.
In other news, Director John A. Bryant purchased 9,825 shares of the business’s stock in a transaction dated Wednesday, August 23rd. The stock was bought at an average price of $20.32 per share, with a total value of $199,644.00. Following the acquisition, the director now owns 9,825 shares in the company, valued at approximately $199,644. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.40% of the company’s stock.
A number of large investors have recently modified their holdings of the stock. Sentry Investment Management LLC lifted its stake in Macy’s by 1.0% in the 2nd quarter. Sentry Investment Management LLC now owns 23,637 shares of the company’s stock valued at $549,000 after purchasing an additional 245 shares during the last quarter. Toronto Dominion Bank lifted its stake in Macy’s by 25.7% in the 2nd quarter. Toronto Dominion Bank now owns 103,151 shares of the company’s stock valued at $2,397,000 after purchasing an additional 21,069 shares during the last quarter. Dynamic Technology Lab Private Ltd lifted its stake in Macy’s by 66.3% in the 2nd quarter. Dynamic Technology Lab Private Ltd now owns 38,430 shares of the company’s stock valued at $892,000 after purchasing an additional 15,324 shares during the last quarter. Wealthsource Partners LLC bought a new position in Macy’s in the 2nd quarter valued at approximately $374,000. Finally, Nomura Holdings Inc. bought a new position in Macy’s in the 2nd quarter valued at approximately $1,859,000. 81.97% of the stock is owned by institutional investors and hedge funds.
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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