Macy’s (NYSE:M) Raised to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Macy’s (NYSE:M) from a sell rating to a hold rating in a research report sent to investors on Wednesday morning, Zacks.com reports. The brokerage currently has $8.00 price objective on the stock.

According to Zacks, “Shares of Macy’s have fallen in the past six months. The coronavirus outbreak disrupted the business activities forcing the retailer to close all its stores in mid-March. This jeopardized its turnaround efforts. As a result, the company reported dismal numbers for first-quarter fiscal 2020. The coronavirus-induced stay-at-home orders, social distancing and curtailment of discretionary purchases hurt the company’s performance. While net sales declined 45.2% year over year, the bottom line swung to a loss. Even with stores reopened, we believe that sales will take time to reach the pre-COVID levels. Certainly, the company is concentrating on improving financial flexibility and taking adequate steps to stabilize the business. It announced restructuring updates, including cost-containment and headcount reductions to address the challenges.”

A number of other research analysts have also weighed in on the stock. TheStreet lowered shares of Macy’s from a c rating to a d rating in a research note on Friday, July 10th. Deutsche Bank decreased their target price on shares of Macy’s from $7.00 to $5.00 and set a hold rating on the stock in a research note on Friday, May 22nd. UBS Group lowered shares of Macy’s from a neutral rating to a sell rating and decreased their target price for the stock from $6.00 to $3.00 in a research note on Wednesday, July 22nd. Telsey Advisory Group decreased their target price on shares of Macy’s from $8.00 to $6.00 and set a market perform rating on the stock in a research note on Friday, May 22nd. Finally, Credit Suisse Group raised their target price on shares of Macy’s from $4.50 to $6.00 and gave the stock an underperform rating in a research note on Wednesday, June 10th. Nine equities research analysts have rated the stock with a sell rating, six have given a hold rating and one has given a buy rating to the company. The company currently has a consensus rating of Hold and a consensus target price of $9.32.

Macy’s stock traded up $0.22 during midday trading on Wednesday, reaching $7.19. The company had a trading volume of 44,914,176 shares, compared to its average volume of 31,169,361. The company has a market capitalization of $2.23 billion, a P/E ratio of -0.71 and a beta of 1.50. Macy’s has a 12-month low of $4.38 and a 12-month high of $18.57. The firm’s fifty day simple moving average is $6.58 and its 200-day simple moving average is $8.35. The company has a debt-to-equity ratio of 2.91, a current ratio of 1.24 and a quick ratio of 0.38.

Macy’s (NYSE:M) last issued its quarterly earnings results on Tuesday, June 9th. The company reported ($2.03) earnings per share for the quarter, beating the Zacks’ consensus estimate of ($2.35) by $0.32. The firm had revenue of $3.02 billion for the quarter, compared to analyst estimates of $3.03 billion. Macy’s had a negative net margin of 14.28% and a positive return on equity of 2.61%. On average, analysts expect that Macy’s will post -4.61 EPS for the current fiscal year.

A number of institutional investors and hedge funds have recently modified their holdings of M. National Asset Management Inc. purchased a new stake in shares of Macy’s in the first quarter valued at about $66,000. Raymond James Financial Services Advisors Inc. lifted its holdings in shares of Macy’s by 42.2% in the first quarter. Raymond James Financial Services Advisors Inc. now owns 212,956 shares of the company’s stock valued at $1,046,000 after purchasing an additional 63,229 shares in the last quarter. Smith Graham & Co. Investment Advisors LP lifted its holdings in shares of Macy’s by 17.3% in the first quarter. Smith Graham & Co. Investment Advisors LP now owns 425,920 shares of the company’s stock valued at $2,091,000 after purchasing an additional 62,870 shares in the last quarter. CIBC Asset Management Inc lifted its holdings in shares of Macy’s by 59.5% in the second quarter. CIBC Asset Management Inc now owns 41,452 shares of the company’s stock valued at $285,000 after purchasing an additional 15,463 shares in the last quarter. Finally, Commonwealth Equity Services LLC lifted its holdings in shares of Macy’s by 11.2% in the first quarter. Commonwealth Equity Services LLC now owns 60,583 shares of the company’s stock valued at $297,000 after purchasing an additional 6,102 shares in the last quarter. Institutional investors own 89.72% of the company’s stock.

About Macy’s

Macy's, Inc, an omnichannel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. As of April 1, 2019, it operated approximately 680 department stores under the Macy's and Bloomingdale's names; and 190 specialty stores, such as Bloomingdale's The Outlet, Bluemercury, Macy's Backstage, and STORY in 43 states, the District of Columbia, Guam, and Puerto Rico.

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