Macy’s (NYSE:M) Trading Up 5.8% – Still a Buy?

Macy’s, Inc. (NYSE:M) shares rose 5.8% during mid-day trading on Friday . The stock traded as high as $16.00 and last traded at $15.95. Approximately 2,251,720 shares traded hands during trading, a decline of 64% from the average daily volume of 6,237,186 shares. The stock had previously closed at $15.07.

Wall Street Analyst Weigh In

M has been the subject of a number of recent analyst reports. Telsey Advisory Group reiterated a “market perform” rating and issued a $21.00 target price on shares of Macy’s in a research note on Wednesday, August 21st. Morgan Stanley cut their target price on Macy’s from $18.00 to $17.00 and set an “equal weight” rating on the stock in a research report on Thursday, August 22nd. StockNews.com assumed coverage on Macy’s in a research note on Sunday, November 10th. They set a “hold” rating on the stock. Finally, Argus upgraded Macy’s to a “hold” rating in a research note on Thursday, October 10th. Seven research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $20.43.

Macy’s Stock Performance

The company has a current ratio of 1.48, a quick ratio of 0.34 and a debt-to-equity ratio of 0.70. The firm’s fifty day moving average price is $15.42 and its two-hundred day moving average price is $16.87. The stock has a market capitalization of $4.49 billion, a PE ratio of 24.92 and a beta of 2.11.

Macy’s (NYSE:M) last posted its earnings results on Wednesday, August 21st. The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.30 by $0.23. The firm had revenue of $4.94 billion for the quarter, compared to analysts’ expectations of $5.06 billion. Macy’s had a return on equity of 23.14% and a net margin of 0.80%. The company’s quarterly revenue was down 3.8% on a year-over-year basis. During the same period last year, the firm earned $0.26 EPS. As a group, equities research analysts forecast that Macy’s, Inc. will post 2.7 EPS for the current year.

Macy’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 2nd. Stockholders of record on Friday, December 13th will be given a $0.1737 dividend. This represents a $0.69 dividend on an annualized basis and a dividend yield of 4.29%. The ex-dividend date is Friday, December 13th. Macy’s’s dividend payout ratio (DPR) is presently 107.81%.

Hedge Funds Weigh In On Macy’s

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. US Bancorp DE lifted its stake in shares of Macy’s by 6.4% in the first quarter. US Bancorp DE now owns 21,669 shares of the company’s stock worth $433,000 after buying an additional 1,306 shares in the last quarter. EntryPoint Capital LLC acquired a new stake in shares of Macy’s in the first quarter valued at approximately $51,000. Gamco Investors INC. ET AL lifted its position in Macy’s by 9.3% during the first quarter. Gamco Investors INC. ET AL now owns 11,800 shares of the company’s stock worth $236,000 after buying an additional 1,000 shares in the last quarter. Gabelli Funds LLC boosted its stake in Macy’s by 16.2% during the first quarter. Gabelli Funds LLC now owns 159,750 shares of the company’s stock worth $3,193,000 after buying an additional 22,250 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its holdings in Macy’s by 6.3% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 141,529 shares of the company’s stock valued at $2,830,000 after buying an additional 8,403 shares in the last quarter. 87.36% of the stock is owned by hedge funds and other institutional investors.

Macy’s Company Profile

Macy's, Inc, an omni-channel retail organization, operates stores, websites, and mobile applications in the United States. The company sells a range of merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and bluemercury brands.