Ready to Jump After Recent Trade: Macy’s Inc. (M)

Macy’s Inc. (NYSE: M) stock jumped 2.78% on Wednesday to $15.18 against a previous-day closing price of $14.77. With 25.4 million shares changed hands, the volume of the stock remained heavier than its average volume of 10.89 million shares. During the session, the Department Stores company that operates in wider Consumer Cyclical sector, reached to the highest price of $15.88 whereas the lowest price it dropped to was $14.89. The 52-week range on M shows that it touched its highest point at $25.12 and its lowest point at $14.48 during that stretch. It currently has a 1-year price target of $22.75. With its current market cap of 4.42 billion, M has annualized dividend of $0.66 while the current yield stands at 4.36%. Beta for the stock currently stands at 1.83.

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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 down-trending over the past week, with a drop of -2.75%, but this was down by -7.04% over a month. Three-month performance dropped to -26.81% while six-month performance fell -33.07%. The stock lost -17.37% in the past year, while it has lost -26.49% so far this year. A look at the trailing 12-month EPS for M yields 4.07 with Next year EPS estimates of 3.72. For the next quarter, that number is 0.74. This implies an EPS growth rate of -8.10% for this year and -0.38% for next year. EPS is expected to decline by -4.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.50%.

Float and Shares Shorts:

At present, 297.60 million M shares are outstanding with a float of 270.31 million shares on hand for trading. On Apr 27, 2023, short shares totaled 21.74 million, which was 7.98% higher than short shares on Mar 30, 2023. In addition to Mr. Jeffrey Gennette as the firm’s Chairman & CEO, Mr. Antony Spring serves as its Pres & Director.

Institutional Ownership:

Through their ownership of 86.13% of M’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.25% of M, in contrast to 41.89% held by mutual funds. Shares owned by individuals account for 1.43%. As the largest shareholder in M with 12.35% of the stake, The Vanguard Group, Inc. holds 33,510,222 shares worth 33,510,222. A second-largest stockholder of M, BlackRock Fund Advisors, holds 22,410,315 shares, controlling over 8.26% of the firm’s shares. Arrowstreet Capital LP is the third largest shareholder in M, holding 10,549,663 shares or 3.89% stake. With a 3.12% stake in M, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 8,460,113 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.11% of M stock, is the second-largest Mutual Fund holder. It holds 8,439,183 shares valued at 137.9 million. Vanguard Small Cap Index Fund holds 2.61% of the stake in M, owning 7,092,782 shares worth 115.9 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jan 27, 2023, M reported revenue of $5.54B and operating income of $429.00M. The EBITDA in the recently reported quarter was $642.00M and diluted EPS was $0.98.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for M since 0 analysts follow the stock currently. 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 $29.00 and a low target of $14.00, the average target price over the next 12 months is $22.00. Based on these targets, M could surge 91.04% to reach the target high and fall by -7.77% to reach the target low. Reaching the average price target will result in a growth of 44.93% 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.

Summary of Insider Activity:

Insiders traded M stock several times over the past three months with 20 Buys and 20 Sells. In these transactions, 1,374,974 shares were bought while 699,937 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 28 over the past year. The total number of shares bought during that period was 1,815,328 while 939,003 shares were sold.

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