Market Analysts see Macy’s Inc. [M] falling to $3. Time to buy?

Macy’s Inc. [NYSE: M] traded at a low on 07/31/20, posting a -2.57 loss after which it closed the day’ session at $6.06. The company report on July 27, 2020 that Macy’s Inc. Announces Expiration and Final Results of Exchange Offers and Consent Solicitations for Certain Outstanding Debt Securities of Macy’s Retail Holdings, LLC.

Macy’s, Inc. (NYSE: M) (“Macy’s”) announced today the final results, as of 11:59 p.m., New York City time, on July 24, 2020 (the “Expiration Date”), of the previously announced (A) offers by its wholly-owned subsidiary, Macy’s Retail Holdings, LLC (“MRH”), to eligible holders to exchange (each, an “Exchange Offer” and, collectively, the “Exchange Offers”) (i) new 6.65% Senior Secured Debentures due 2024 (“New 2024 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 6.65% Senior Debentures due 2024 issued by MRH (“Old 2024 Notes”), (ii) new 6.7% Senior Secured Debentures due 2028 (“New 2028 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 6.7% Senior Debentures due 2028 issued by MRH (“Old 2028 Notes”), (iii) new 8.75% Senior Secured Debentures due 2029 (“New 2029 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 8.75% Senior Debentures due 2029 issued by MRH (“Old 2029 Notes”), (iv) new 7.875% Senior Secured Debentures due 2030 (“New 2030 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 7.875% Senior Debentures due 2030 issued by MRH (“Old 2030 Notes”), (v) new 6.9% Senior Secured Debentures due 2032 (“New 2032 Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 6.9% Senior Debentures due 2032 issued by MRH (“Old 2032 Notes”), and (vi) new 6.7% Senior Secured Debentures due 2034 (“New 2034 Notes” and, together with the New 2024 Notes, New 2028 Notes, New 2029 Notes, New 2030 Notes and New 2032 Notes, the “New Notes” and each series, a “series of New Notes”) to be issued by MRH for validly tendered (and not validly withdrawn) outstanding 6.7% Senior Debentures due 2034 issued by MRH (“Old 2034 Notes” and, together with the Old 2024 Notes, Old 2028 Notes, Old 2029 Notes, Old 2030 Notes and Old 2032 Notes, the “Old Notes” and each series, a “series of Old Notes”) and (B) consent solicitations from holders of each series of Old Notes (each, a “Consent Solicitation” and, collectively, the “Consent Solicitations”) pursuant to the separate Consent Solicitation Statement (as defined below) to adopt certain proposed amendments to the indenture governing the Old Notes (the “Existing Indenture”) to conform certain provisions in the negative pledge covenant in the Existing Indenture to the provisions of the negative pledge covenant in MRH’s most recent indenture (the “Proposed Amendments”).

Exchange Offers.

The results of the trading session contributed to over 22973511 shares changing hands. Over the past one week, the price volatility of Macy’s Inc. stands at 5.21% while the volatility over the past one month is 5.91%.

The market cap for M stock reached $1.93 billion, with 310.60 million shares outstanding and 307.84 million shares in the current float. Compared to the average trading volume of 41.49M shares, M reached a trading volume of 22973511 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Macy’s Inc. [M]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for M shares is $6.38 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on M stock is a recommendation set at 3.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

UBS have made an estimate for Macy’s Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on July 22, 2020. While these analysts kept the previous recommendation, Telsey Advisory Group dropped their target price from $8 to $6. The new note on the price target was released on May 22, 2020, representing the official price target for Macy’s Inc. stock. On February 26, 2020, analysts decreased their price target for M shares from 18 to 16.

The Average True Range (ATR) for Macy’s Inc. is set at 0.42, with the Price to Sales ratio for M stock in the period of the last 12 months amounting to 0.08. The Price to Book ratio for the last quarter was 0.70, with the Price to Cash per share for the same quarter was set at 4.78. Price to Free Cash Flow for M in the course of the last twelve months was 9.90 with Quick ratio for the last quarter at 0.40.

How has M stock performed recently?

Macy’s Inc. [M] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.05. With this latest performance, M shares dropped by -7.90% in over the last four-week period, additionally sinking by -62.01% over the last 6 months – not to mention a drop of -71.43% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for M stock in for the last two-week period is set at 41.17, with the RSI for the last a single of trading hit 38.42, and the three-weeks RSI is set at 44.73 for Macy’s Inc. [M]. The present Moving Average for the last 50 days of trading for this stock 6.88, while it was recorded at 6.28 for the last single week of trading, and 11.04 for the last 200 days.

Macy’s Inc. [M]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Macy’s Inc. [M] shares currently have an operating margin of +4.59 and a Gross Margin at +36.24. Macy’s Inc.’s Net Margin is presently recorded at +2.23.

Return on Total Capital for M is now 9.31, given the latest momentum, and Return on Invested Capital for the company is 4.69. Return on Equity for this stock inclined to 8.80, with Return on Assets sitting at 2.66. When it comes to the capital structure of this company, Macy’s Inc. [M] has a Total Debt to Total Equity ratio set at 116.21. Additionally, M Total Debt to Total Capital is recorded at 53.75, with Total Debt to Total Assets ending up at 32.82. Long-Term Debt to Equity for the company is recorded at 102.54, with the Long-Term Debt to Total Capital now at 47.43.

Reflecting on the efficiency of the workforce at the company, Macy’s Inc. [M] managed to generate an average of $4,585 per employee. Receivables Turnover for the company is 52.99 with a Total Asset Turnover recorded at a value of 1.19.Macy’s Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.40 and a Current Ratio set at 1.20.

Earnings analysis for Macy’s Inc. [M]

With the latest financial reports released by the company, Macy’s Inc. posted 0.28/share EPS, while the average EPS was predicted by analysts to be reported at 0.45/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -37.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for M.

Insider trade positions for Macy’s Inc. [M]

There are presently around $1,672 million, or 92.60% of M stock, in the hands of institutional investors. The top three institutional holders of M stocks are: YACKTMAN ASSET MANAGEMENT LP with ownership of 45,455,249, which is approximately 85.942% of the company’s market cap and around 0.12% of the total institutional ownership; VANGUARD GROUP INC, holding 35,382,438 shares of the stock with an approximate value of $214.42 million in M stocks shares; and BLACKROCK INC., currently with $167.87 million in M stock with ownership of nearly -4.048% of the company’s market capitalization.

Positions in Macy’s Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 221 institutional holders increased their position in Macy’s Inc. [NYSE:M] by around 56,014,061 shares. Additionally, 275 investors decreased positions by around 70,215,331 shares, while 46 investors held positions by with 149,616,061 shares. The mentioned changes placed institutional holdings at 275,845,453 shares, according to the latest SEC report filing. M stock had 76 new institutional investments in for a total of 11,214,040 shares, while 111 institutional investors sold positions of 19,840,648 shares during the same period.

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