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

Macy’s, Inc. (NYSE:M)’s stock price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. 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.

The company reported $0.04 earnings per share 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 during the quarter, compared to analyst estimates of $4.74 billion. During the same period in the previous year, the firm posted $0.21 EPS. The company’s revenue for the quarter was down 2.4% compared to the same quarter last year.

Macy’s Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 2nd. Investors of record on Friday, December 13th will be given a dividend of $0.1737 per share. The ex-dividend date is Friday, December 13th. This represents a $0.69 dividend on an annualized basis and a yield of 4.26%. Macy’s’s dividend payout ratio (DPR) is currently 107.81%.

Wall Street Analyst Weigh In

M has been the topic of a number of recent analyst reports. UBS Group reduced their price target on Macy’s from $10.00 to $9.00 and set a “sell” rating on the stock in a research note on Thursday. Argus raised Macy’s to a “hold” rating in a research note on Thursday, October 10th. StockNews.com upgraded Macy’s from a “hold” rating to a “buy” rating in a report on Wednesday, November 27th. Morgan Stanley cut their price objective on shares of Macy’s from $17.00 to $16.00 and set an “equal weight” rating on the stock in a report on Thursday. Finally, Telsey Advisory Group reaffirmed a “market perform” rating and set a $17.00 price target on shares of Macy’s in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, Macy’s presently has an average rating of “Hold” and an average price target of $18.38.

Institutional Investors Weigh In On Macy’s

A number of institutional investors have recently made changes to their positions in M. Quest Partners LLC bought a new stake in shares of Macy’s during the 3rd quarter valued at about $35,000. Venturi Wealth Management LLC boosted its stake 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 acquiring an additional 1,685 shares during the period. Future Financial Wealth Managment LLC bought a new position in shares of Macy’s during the third quarter valued at approximately $39,000. Abich Financial Wealth Management LLC acquired a new stake in shares of Macy’s during the 2nd quarter worth approximately $57,000. Finally, Point72 Asia Singapore Pte. Ltd. bought a new stake in shares of Macy’s in the 2nd quarter worth approximately $62,000. 87.36% of the stock is currently owned by institutional investors.

Macy’s Trading Down 1.7 %

The firm has a market cap of $4.52 billion, a P/E ratio of 25.46 and a beta of 2.10. The firm has a fifty day moving average of $15.77 and a 200-day moving average of $16.53. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.34 and a current ratio of 1.48.

About Macy’s

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.