Macy’s (NYSE:M) Shares Gap Up After Earnings Beat

Macy’s, Inc. (NYSE:M)’s share price gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $16.92, but opened at $17.59. Macy’s shares last traded at $18.0520, with a volume of 5,082,128 shares traded.

The company reported $1.67 earnings per share for the quarter, beating analysts’ consensus estimates of $1.55 by $0.12. Macy’s had a return on equity of 15.57% and a net margin of 2.10%.The business had revenue of $7.92 billion during the quarter, compared to analyst estimates of $7.48 billion. During the same period in the previous year, the company posted $1.80 EPS. Macy’s’s revenue was down 1.7% on a year-over-year basis.

Macy’s Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be paid a $0.1915 dividend. This represents a $0.77 dividend on an annualized basis and a yield of 4.3%. This is a boost from Macy’s’s previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Friday, March 13th. Macy’s’s payout ratio is currently 45.56%.

Key Macy’s News

Here are the key news stories impacting Macy’s this week:

• Positive Sentiment: Macy’s reported Q4 beat on both EPS and revenue, driven by positive comparable‑store sales across its nameplates and strong Bloomingdale’s results — a key catalyst for intraday buying. MarketBeat: Q4 Results & Call
• Positive Sentiment: Management credited a structural shift — greater use of loyalty data, AI and refreshed store formats — for returning the company to comparable‑sales growth, supporting a more constructive narrative on execution. PYMNTS: AI, Stores & Loyalty
• Neutral Sentiment: Investor interest ramped up ahead of the print — unusually large call‑option volume was recorded, signaling speculative/leveraged positioning that can amplify moves in either direction. (Options volume data)
• Neutral Sentiment: Analysts are split: Telsey reaffirmed market‑perform with a $25 target, while JPMorgan trimmed its target from $24 to $21 and moved to neutral — both signal cautious optimism but reduce conviction among some investors. Benzinga: Analyst Note
• Negative Sentiment: Management issued mixed/soft guidance for the coming year, forecasting weaker annual sales and profit amid tight consumer spending — this tempers the upside from the quarter and explains some profit‑taking pressure. Reuters: Weak Annual Sales Forecast
• Negative Sentiment: Hotter‑than‑expected producer inflation readings (PPI) add a macro risk: stickier input prices or broader inflation could pressure margins or further curb consumer spending. Zacks: PPI Comes in Hot

Wall Street Analyst Weigh In

M has been the subject of several recent research reports. UBS Group boosted their price target on shares of Macy’s from $8.00 to $9.00 and gave the company a “sell” rating in a report on Monday, March 9th. Telsey Advisory Group reiterated a “market perform” rating and set a $25.00 price objective on shares of Macy’s in a research note on Wednesday. JPMorgan Chase & Co. cut their price objective on shares of Macy’s from $24.00 to $21.00 and set a “neutral” rating on the stock in a report on Wednesday. The Goldman Sachs Group boosted their price objective on shares of Macy’s from $16.50 to $22.00 and gave the stock a “neutral” rating in a research note on Friday, December 5th. Finally, Morgan Stanley upped their target price on Macy’s from $20.00 to $21.00 and gave the stock an “equal weight” rating in a report on Friday, December 5th. One analyst has rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Macy’s presently has an average rating of “Reduce” and a consensus price target of $20.00.

Institutional Trading of Macy’s

A number of institutional investors have recently modified their holdings of M. Norges Bank bought a new position in shares of Macy’s during the 2nd quarter worth approximately $58,743,000. Schroder Investment Management Group lifted its position in Macy’s by 104.5% during the second quarter. Schroder Investment Management Group now owns 9,627,790 shares of the company’s stock valued at $112,260,000 after acquiring an additional 4,920,821 shares during the last quarter. Marshall Wace LLP acquired a new stake in Macy’s in the fourth quarter valued at approximately $69,562,000. Goldman Sachs Group Inc. boosted its stake in Macy’s by 67.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 6,823,034 shares of the company’s stock valued at $150,448,000 after acquiring an additional 2,750,115 shares in the last quarter. Finally, Invesco Ltd. grew its holdings in Macy’s by 160.5% in the second quarter. Invesco Ltd. now owns 4,283,107 shares of the company’s stock worth $49,941,000 after purchasing an additional 2,639,132 shares during the last quarter. 87.36% of the stock is currently owned by institutional investors.

Macy’s Stock Up 4.8%

The company’s fifty day simple moving average is $20.47 and its 200-day simple moving average is $20.03. The firm has a market capitalization of $4.71 billion, a PE ratio of 10.49 and a beta of 1.51. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.25 and a quick ratio of 0.18.

About Macy’s

Macy’s, Inc is a leading American omnichannel retailer operating under the Macy’s brand, as well as specialty divisions Bloomingdale’s and Bluemercury. The company’s retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy’s seeks to deliver a seamless shopping experience that blends in-store service with online convenience.

The company’s product assortment spans men’s, women’s and children’s clothing, beauty and personal care products, housewares and home décor.