Shares of Macy’s, Inc. (NYSE:M) have received an average rating of “Hold” from analysts covering the company, as reported by MarketBeat. Among the fifteen brokerages that have provided insights, one has issued a sell recommendation, eleven have opted for a hold, while one analyst recommends buying the stock and two suggest a strong buy. The consensus twelve-month price target for Macy’s stock currently stands at $15.75.
Several research firms have recently updated their ratings and price targets for Macy’s. On September 4, UBS Group raised its price objective from $6.00 to $6.50 while maintaining a “sell” rating. Conversely, on September 18, Zacks Research upgraded Macy’s from a “hold” to a “strong buy” rating. On the same day, Morgan Stanley increased its price target from $12.00 to $16.00 with an “equal weight” recommendation. Later, on October 6, Goldman Sachs Group raised its target from $14.50 to $16.50 and issued a “neutral” rating. Following these developments, on November 19, Citigroup increased its target price from $16.00 to $19.00, also maintaining a “neutral” stance.
Significant Institutional Investment Activity
The stock has drawn interest from institutional investors, leading to noteworthy changes in their holdings. For example, Victory Capital Management Inc. increased its stake in Macy’s by 55.5% during the first quarter, acquiring an additional 130,457 shares to reach a total of 365,451 shares, valued at approximately $4.59 million. Other significant investments include RWC Asset Management LLP, which purchased a new stake valued at around $80.87 million, and Bayforest Capital Ltd, which acquired shares worth about $720,000.
Additionally, US Bancorp DE raised its holdings by 6.7% to own 19,624 shares valued at $246,000, while PNC Financial Services Group Inc. boosted its position by 6.2%, bringing its total to 25,399 shares, worth approximately $319,000. Overall, around 87.36% of Macy’s stock is held by hedge funds and institutional investors.
Macy’s stock opened at $22.41 on Monday and has experienced a twelve-month low of $9.76 alongside a high of $22.93. The company’s market capitalization is approximately $6.02 billion, with a price-to-earnings ratio of 12.80 and a beta of 1.83. The stock also shows a 50-day moving average of $18.85 and a 200-day moving average of $14.95.
Macy’s Recent Financial Performance
In its latest quarterly earnings report, released on September 3, Macy’s reported an earnings per share (EPS) of $0.41, surpassing analysts’ expectations of $0.19 by $0.22. The company recorded a net margin of 2.18% and a return on equity of 15.39%, with revenues amounting to $4.81 billion, exceeding projections of $4.69 billion. Despite these positive results, revenue declined 2.5% compared to the same quarter last year, when the EPS was $0.53.
Looking ahead, Macy’s has set its Q3 2025 guidance at an EPS range of -0.200 to 0.150 and a full-year guidance for FY 2025 at $1.700 to $2.050. Analysts expect the company to post an EPS of 2.39 for the current year.
Macy’s also announced a quarterly dividend of $0.1824 per share, scheduled for payment on January 2, 2025, to shareholders of record on December 15, 2024. This reflects an annualized dividend of $0.73 and a yield of 3.3%. The ex-dividend date is set for December 15, 2024, and the company’s current dividend payout ratio stands at 41.71%.
Macy’s, Inc. operates in the retail sector, specializing in apparel, accessories, cosmetics, home furnishings, and various other consumer goods. Its well-known brands include Macy’s, Bloomingdale’s, and Bluemercury, offering a wide range of products for men, women, and children.
