Zacks Investment Research Lowers Macy’s Inc (M) to Sell
Macy’s Inc (NYSE:M) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
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.”
M has been the topic of a number of other reports. Royal Bank Of Canada set a $23.00 target price on shares of Macy’s and gave the stock a “hold” rating in a report on Friday, August 11th. BidaskClub raised shares of Macy’s from a “sell” rating to a “hold” rating in a report on Wednesday, July 19th. UBS AG reissued a “neutral” rating and set a $21.00 target price (down from $23.00) on shares of Macy’s in a report on Monday, August 14th. BMO Capital Markets reissued an “outperform” rating on shares of Macy’s in a report on Tuesday, August 15th. Finally, ValuEngine lowered shares of Macy’s from a “buy” rating to a “hold” rating in a report on Friday, September 1st. Two analysts have rated the stock with a sell rating, sixteen have assigned a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company. The stock has a consensus rating of “Hold” and an average price target of $26.92.
Macy’s (NYSE M) traded down 0.92% during mid-day trading on Wednesday, hitting $20.47. 7,196,958 shares of the stock traded hands. Macy’s has a one year low of $19.32 and a one year high of $45.41. The company has a 50 day moving average price of $21.38 and a 200-day moving average price of $23.81. The stock has a market capitalization of $6.23 billion, a PE ratio of 9.30 and a beta of 0.87.
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, topping the Zacks’ consensus estimate of $0.45 by $0.03. The business had revenue of $5.55 billion during the quarter, compared to analysts’ expectations of $5.52 billion. Macy’s had a net margin of 2.71% and a return on equity of 21.38%. The firm’s quarterly revenue was down 5.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.51 EPS. Equities analysts anticipate that Macy’s will post $3.40 earnings per share for the current fiscal year.
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In related news, Director John A. Bryant bought 9,825 shares of the business’s stock in a transaction that occurred on Wednesday, August 23rd. The shares were acquired at an average cost of $20.32 per share, with a total value of $199,644.00. Following the completion of the purchase, the director now directly owns 9,825 shares in the company, valued at $199,644. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.40% of the stock is owned by corporate insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in M. Sei Investments Co. raised its holdings in Macy’s by 23.5% during the first quarter. Sei Investments Co. now owns 12,365 shares of the company’s stock worth $367,000 after buying an additional 2,355 shares during the last quarter. Pacer Advisors Inc. raised its holdings in Macy’s by 3.2% during the first quarter. Pacer Advisors Inc. now owns 6,500 shares of the company’s stock worth $193,000 after buying an additional 200 shares during the last quarter. California Public Employees Retirement System raised its holdings in Macy’s by 3.5% during the first quarter. California Public Employees Retirement System now owns 787,600 shares of the company’s stock worth $23,344,000 after buying an additional 26,400 shares during the last quarter. QUANTRES ASSET MANAGEMENT Ltd raised its holdings in Macy’s by 63.5% during the first quarter. QUANTRES ASSET MANAGEMENT Ltd now owns 42,500 shares of the company’s stock worth $1,260,000 after buying an additional 16,500 shares during the last quarter. Finally, Legal & General Group Plc raised its holdings in Macy’s by 7.3% during the first quarter. Legal & General Group Plc now owns 1,801,901 shares of the company’s stock worth $53,413,000 after buying an additional 122,780 shares during the last quarter. Hedge funds and other institutional investors own 81.97% 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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