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Adrian V. Mitchell, the Executive Vice President, Chief Operating Officer, and Chief Financial Officer of Macy’s, Inc. (NYSE:M), recently executed several stock transactions, according to a recent SEC filing. On March 25 and March 26, Mitchell sold a total of 7,927 shares of Macy’s common stock, amounting to $106,849. The shares were sold at prices ranging from $13.2774 to $13.7359 per share. The transactions come as Macy’s trades near its 52-week low, with a current market capitalization of $3.7 billion and an attractive P/E ratio of 6.3. InvestingPro analysis indicates the stock is currently trading below its Fair Value.
These sales were part of a series of transactions that also included the acquisition of shares through restricted stock units. On March 24 and March 25, Mitchell acquired 19,305 shares at no cost, as these were part of his compensation package. Following these transactions, Mitchell holds 122,493 shares of Macy’s common stock directly. The company maintains a significant 5.5% dividend yield and has maintained dividend payments for 23 consecutive years. For deeper insights into Macy’s financial health and extensive insider trading analysis, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Macy’s reported fourth-quarter earnings per share (EPS) of $1.80, surpassing the expected $1.54, although this was attributed to one-time adjustments. Despite the earnings beat, the company experienced a decline in owned comparable sales of 1.1%, not meeting the anticipated -0.2%. Analysts from TD Cowen, Telsey Advisory Group, Citi, JPMorgan, and CFRA have all adjusted their price targets for Macy’s shares, ranging from $13 to $15, reflecting cautious outlooks for the fiscal year 2025. Telsey Advisory Group noted that while Macy’s sales met forecasts, the company’s fiscal year 2025 projections were less optimistic, with comparable store sales expected to be flat or negative.
Macy’s management has outlined a strategy to close underperforming stores and expand luxury locations, aiming to capitalize on asset monetization efforts. However, analysts like Paul Lejuez from Citi have expressed concerns over the broader challenges facing department stores, noting that Macy’s consumers are under pressure from various factors. JPMorgan downgraded Macy’s stock to Neutral, highlighting mixed performance in other areas despite the EPS beat. CFRA’s revised price target is based on a forward P/E multiple, with the firm maintaining a Hold rating due to anticipated long-term challenges in the department store sector. These developments point to ongoing macroeconomic challenges and strategic shifts within the company.
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