Macy’s (NYSE:M) Shares Gap Down on Disappointing Earnings

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 changing hands.

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

Macy’s Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 2nd. Stockholders of record on Friday, December 13th will be paid a $0.1737 dividend. This represents a $0.69 annualized dividend and a dividend yield of 4.54%. The ex-dividend date of this dividend is Friday, December 13th. Macy’s’s dividend payout ratio (DPR) is presently 107.81%.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. StockNews.com upgraded shares of Macy’s from a “hold” rating to a “buy” rating in a research report on Wednesday, November 27th. Telsey Advisory Group reiterated a “market perform” rating and set a $17.00 price objective on shares of Macy’s in a report on Wednesday. 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 note on Thursday, August 22nd. Finally, Argus upgraded shares of Macy’s to a “hold” rating in a report on Thursday, October 10th. Six equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, Macy’s currently has an average rating of “Hold” and an average price target of $19.86.

Institutional Trading of Macy’s

Several hedge funds have recently added to or reduced their stakes in the company. CWM LLC lifted its stake in Macy’s by 7.7% in the 2nd quarter. CWM LLC now owns 8,398 shares of the company’s stock valued at $161,000 after purchasing an additional 598 shares during the last quarter. SummerHaven Investment Management LLC increased its position in Macy’s by 1.7% in the 2nd quarter. SummerHaven Investment Management LLC now owns 44,321 shares of the company’s stock valued at $851,000 after acquiring an additional 761 shares during the period. Wedmont Private Capital lifted its stake in shares of Macy’s by 6.1% in the second quarter. Wedmont Private Capital now owns 14,403 shares of the company’s stock worth $275,000 after acquiring an additional 833 shares during the period. United Services Automobile Association increased its position in shares of Macy’s by 4.8% during the second quarter. United Services Automobile Association now owns 22,038 shares of the company’s stock worth $423,000 after buying an additional 1,012 shares during the period. Finally, Federated Hermes Inc. raised its stake in Macy’s by 2.5% during the second quarter. Federated Hermes Inc. now owns 44,337 shares of the company’s stock worth $851,000 after buying an additional 1,095 shares during the last quarter. 87.36% of the stock is owned by institutional investors and hedge funds.

Macy’s Trading Down 8.6 %

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.48 and a quick ratio of 0.34. The firm’s fifty day moving average is $15.73 and its 200-day moving average is $16.53. The firm has a market cap of $4.24 billion, a price-to-earnings ratio of 23.44 and a beta of 2.11.

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.