How Big Are Returns in Macy’s, Inc. (M)?

Macy’s, Inc. (M) will probably climb 19.08 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $40-month high price target. This represents a whopping 57.36 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $28, which represents a return potential of 10.15 percent when compared to the closing price of the stock of $25.42 on Friday, January 11. The lowest price target for the stock is $18 — slightly more than -29.19 percent from M’s current share price.

The stock is currently hovering around the first support level of $24.87. Below this, the next support is placed in the zone of $24.31. Till the time, the M stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 30.2 on daily chart, which may remain a cause for comfort. If the price breaks below $24.31 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $26.38 mark may result into a pull-back move towards $27.33 level.

On 11th of January, Macy’s, Inc. (NYSE:M) shares ended lower after a volatile session. The shares dropped -0.69 points or -2.64 percent at $25.42 with a heavy trade volume of 20.268 million shares. After opening the session at $26.13, the shares went as high as $26.7801 and as low as $25.27, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $8.03 billion and now has 315.81 million shares outstanding. Macy’s, Inc. (M) stock has lost -20.16 percent of market value in 21 trading days.

M stock has a trailing 3-year beta of 0.64, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.63 a share in the trailing twelve months. The stock’s value has fallen -14.64 percent year to date (YTD) against a decline of -0.7 percent in 12 month’s time. The company’s shares still trade -39.46 percent away from its 1-year high of $41.99 and 13.13 percent up from 52-week low of $22.47. The average consensus rating on the company is 3.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of Macy’s, Inc. (M) are trading at a P/E ratio of 9.43 times earnings reported for the past 12 months. The industry M operates in has an average P/E of 63.25. Its P/E ratio went as low as 12.2X and as high as 15.14 over the 5-year span. Further, it is sporting a 0.31 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.74. 40.5 percent is the gross profit margin for Macy’s, Inc. and operating margin sits at 7.1 percent. Along with this, the net profit margin is 6.6 percent.

Let’s take a look at some insider activity at Macy’s, Inc. (NYSE:M) and see the pattern. The earliest insider trade took place on 11/16/2018. Lenehan William H gathered a total of 3.15 thousand shares of company at average share price of $31.74. The total for the purchase was set at $100.11 thousand. After this transaction, the Director account balance stood at 11.21 thousand shares. The stock lost -19.91 percent since that insider purchase. On 11/16/2018, Lawton Iii Harry A, President, sold 200 thousand shares at a price per share of $33.09. This removed 6.62 million shares from the insider’s fortune and the stock saw a -23.18 percent retreat in value since the news became public. This transaction left 26.04 thousand shares in the President account.

On 09/21/2018, Chief Legal Officer Garcia C Elisa D performed a sale transaction worth $165.91 thousand. This sale at $35.85 each has eliminated 4.63 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -29.09 percent decrease since the transaction was reported. The insider now is left with 6.1 thousand shares remaining in the account. Lawton Iii Harry A, who performs the President job, sold 28.68 thousand shares for $1.03 million. The disposal occurred on 09/10/2018 was priced at $36.05 per share. The share price plunged -29.49 percent since the reporting date. Lawton Iii Harry A now left with a stake of 26.04 thousand M stock worth $661.89 thousand after the insider selling.