Macy’s (NYSE:M) Shares Gap Down After Earnings Miss

Shares of Macy’s, Inc. (NYSE:M) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $16.72, but opened at $14.90. Macy’s shares last traded at $15.00, with a volume of 7,870,901 shares trading hands.

The company reported $0.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.03). Macy’s had a net margin of 0.80% and a return on equity of 23.14%. The business had revenue of $4.74 billion for the quarter, compared to analyst estimates of $4.74 billion. During the same quarter in the prior year, the business earned $0.21 earnings per share. The firm’s quarterly revenue was down 2.4% compared to the same quarter last year.

Macy’s Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, January 2nd. Investors 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 yield of 4.54%. The ex-dividend date is Friday, December 13th. Macy’s’s payout ratio is currently 107.81%.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. Argus raised shares of Macy’s to a “hold” rating in a research report on Thursday, October 10th. Telsey Advisory Group reissued a “market perform” rating and set a $17.00 target price on shares of Macy’s in a research report on Wednesday. StockNews.com raised Macy’s from a “hold” rating to a “buy” rating in a report on Wednesday, November 27th. Finally, Morgan Stanley dropped their price target on Macy’s from $18.00 to $17.00 and set an “equal weight” rating on the stock in a report on Thursday, August 22nd. Six analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $19.86.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Quest Partners LLC purchased a new position in Macy’s in the 3rd quarter valued at approximately $35,000. Venturi Wealth Management LLC boosted its holdings in shares of Macy’s by 282.7% in the third quarter. Venturi Wealth Management LLC now owns 2,281 shares of the company’s stock worth $36,000 after acquiring an additional 1,685 shares during the period. Future Financial Wealth Managment LLC purchased a new position in shares of Macy’s in the third quarter valued at $39,000. Abich Financial Wealth Management LLC bought a new stake in shares of Macy’s during the 2nd quarter valued at $57,000. Finally, Point72 Asia Singapore Pte. Ltd. bought a new stake in shares of Macy’s during the 2nd quarter valued at $62,000. Hedge funds and other institutional investors own 87.36% of the company’s stock.

Macy’s Price 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 has a market cap of $4.24 billion, a PE ratio of 23.44 and a beta of 2.11. The business has a fifty day moving average of $15.73 and a 200-day moving average of $16.53.

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.