Macy’s Inc. (NYSE: M) stock fell -0.80% on Wednesday to $23.42 against a previous-day closing price of $23.61. With 8.66 million shares changed hands, the volume of the stock remained lighter than its average volume of 11.94 million shares. During the session, the Department Stores company that operates in wider Consumer Cyclical sector, reached to the highest price of $23.67 whereas the lowest price it dropped to was $23.02. The 52-week range on M shows that it touched its highest point at $33.78 and its lowest point at $15.10 during that stretch. It currently has a 1-year price target of $23.53. With its current market cap of 6.47 billion, M has annualized dividend of $0.63 while the current yield stands at 2.69%. Beta for the stock currently stands at 1.75.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of M was up-trending over the past week, with a rise of 18.82%, but this was up by 13.86% over a month. Three-month performance surged to 22.88% while six-month performance rose 21.92%. The stock lost -30.36% in the past year, while it has lost -10.54% so far this year. A look at the trailing 12-month EPS for M yields 4.80 with Next year EPS estimates of 4.00. For the next quarter, that number is 1.63. This implies an EPS growth rate of 133.50% for this year and -4.17% for next year. EPS is expected to decline by -6.63% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.50%.
Float and Shares Shorts:
At present, 271.10 million M shares are outstanding with a float of 270.19 million shares on hand for trading. On Oct 13, 2022, short shares totaled 22.41 million, which was 8.27% higher than short shares on Sep 14, 2022. In addition to Mr. Jeffrey Gennette as the firm’s Chairman & CEO, Mr. Adrian V. Mitchell serves as its Exec. VP & CFO.
Through their ownership of 85.28% of M’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.80% of M, in contrast to 38.83% held by mutual funds. Shares owned by individuals account for 1.18%. As the largest shareholder in M with 9.93% of the stake, The Vanguard Group, Inc. holds 26,899,606 shares worth 26,899,606. A second-largest stockholder of M, BlackRock Fund Advisors, holds 21,275,246 shares, controlling over 7.85% of the firm’s shares. Arrowstreet Capital LP is the third largest shareholder in M, holding 10,571,235 shares or 3.90% stake. With a 2.99% stake in M, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 8,106,002 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.99% of M stock, is the second-largest Mutual Fund holder. It holds 8,094,078 shares valued at 168.76 million. Vanguard Small Cap Index Fund holds 2.58% of the stake in M, owning 6,995,215 shares worth 145.85 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for M since 17 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With M analysts setting a high price target of $30.00 and a low target of $14.00, the average target price over the next 12 months is $23.61. Based on these targets, M could surge 28.1% to reach the target high and fall by -40.22% to reach the target low. Reaching the average price target will result in a growth of 0.81% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. M will report FY 2023 earnings on 02/21/2023. Analysts have provided yearly estimates in a range of $4.31 being high and $4.02 being low. For M, this leads to a yearly average estimate of $4.19. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Macy’s Inc. surprised analysts by $0.34 when it reported $0.52 EPS against a consensus estimate of $0.18. The surprise factor in the prior quarter was $0.14. Based on analyst estimates, the high estimate for the next quarter is $1.85 and the low estimate is $1.46. The average estimate for the next quarter is thus $1.63.
Summary of Insider Activity:
Insiders traded M stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 4,085 shares were bought while 4,091 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 835,487 while 427,790 shares were sold.