Macy’s (NYSE:M) Trading 5.8% Higher Following Earnings Beat

Macy’s, Inc. (NYSE:M) shares traded up 5.8% on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $13.89 and last traded at $13.99. 2,949,551 shares changed hands during mid-day trading, a decline of 57% from the average session volume of 6,880,964 shares. The stock had previously closed at $13.22.

The company reported $1.80 EPS for the quarter, topping analysts’ consensus estimates of $1.55 by $0.25. The company had revenue of $7.77 billion during the quarter, compared to the consensus estimate of $7.76 billion. Macy’s had a net margin of 0.73% and a return on equity of 21.99%.

Macy’s Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Friday, March 14th will be given a dividend of $0.1824 per share. The ex-dividend date is Friday, March 14th. This represents a $0.73 dividend on an annualized basis and a yield of 5.18%. This is an increase from Macy’s’s previous quarterly dividend of $0.17. Macy’s’s dividend payout ratio is presently 116.95%.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on M shares. Gordon Haskett cut shares of Macy’s from an “accumulate” rating to a “hold” rating in a research note on Thursday. Benchmark raised shares of Macy’s to a “strong-buy” rating in a research note on Monday, February 3rd. UBS Group lowered their price objective on shares of Macy’s from $9.00 to $8.00 and set a “sell” rating on the stock in a research note on Friday. Guggenheim reissued a “neutral” rating on shares of Macy’s in a research note on Thursday, December 12th. Finally, Telsey Advisory Group reissued a “market perform” rating and issued a $17.00 price objective on shares of Macy’s in a research note on Thursday. One analyst has rated the stock with a sell rating, nine have issued a hold rating, two have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $16.00.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Trifecta Capital Advisors LLC purchased a new position in Macy’s in the fourth quarter valued at approximately $34,000. Jones Financial Companies Lllp raised its holdings in Macy’s by 82.1% in the fourth quarter. Jones Financial Companies Lllp now owns 2,149 shares of the company’s stock valued at $36,000 after buying an additional 969 shares during the period. Quest Partners LLC purchased a new position in Macy’s in the third quarter valued at approximately $35,000. Kestra Investment Management LLC purchased a new position in Macy’s in the fourth quarter valued at approximately $38,000. Finally, Venturi Wealth Management LLC raised its holdings in Macy’s by 282.7% in the third quarter. Venturi Wealth Management LLC now owns 2,281 shares of the company’s stock valued at $36,000 after buying an additional 1,685 shares during the period. 87.36% of the stock is currently owned by hedge funds and other institutional investors.

Macy’s Price Performance

The company’s fifty day moving average is $15.10 and its 200 day moving average is $15.50. The company has a quick ratio of 0.17, a current ratio of 1.26 and a debt-to-equity ratio of 0.67. The stock has a market cap of $3.91 billion, a PE ratio of 23.89 and a beta of 2.05.

Macy’s Company Profile

Macy’s, Inc engages in the retail of apparel, accessories, cosmetics, home furnishings, and other consumer goods. The firm’s brands include Macy’s, Bloomingdale’s, and Bluemercury. It offers men’s, women’s, and children’s apparel, women’s accessories, intimate apparel, shoes, cosmetics, fragrances, as well as home and miscellaneous products.