Zacks Research Has Pessimistic Outlook of Macy's Q2 Earnings

Macy's, Inc. (NYSE:M - Free Report) - Analysts at Zacks Research reduced their Q2 2026 earnings estimates for shares of Macy's in a research report issued to clients and investors on Thursday, March 20th. Zacks Research analyst S. Singh now forecasts that the company will post earnings of $0.33 per share for the quarter, down from their previous estimate of $0.41. The consensus estimate for Macy's' current full-year earnings is $2.39 per share. Zacks Research also issued estimates for Macy's' Q2 2027 earnings at $0.36 EPS.

Macy's (NYSE:M - Get Free Report) last issued its quarterly earnings data on Thursday, March 6th. The company reported $1.80 earnings per share for the quarter, topping the consensus estimate of $1.55 by $0.25. Macy's had a net margin of 0.73% and a return on equity of 21.99%. The firm had revenue of $7.77 billion for the quarter, compared to analysts' expectations of $7.76 billion.

Several other brokerages also recently issued reports on M. UBS Group reduced their price target on shares of Macy's from $9.00 to $8.00 and set a "sell" rating on the stock in a research report on Friday, March 7th. JPMorgan Chase & Co. cut shares of Macy's from an "overweight" rating to a "neutral" rating and decreased their price target for the company from $19.00 to $14.00 in a research note on Thursday, March 6th. Citigroup dropped their price objective on shares of Macy's from $16.00 to $14.00 and set a "neutral" rating for the company in a research report on Friday, March 7th. New Street Research set a $13.00 price objective on Macy's in a research report on Thursday, March 6th. Finally, The Goldman Sachs Group dropped their target price on Macy's from $19.00 to $17.00 and set a "buy" rating for the company in a research report on Friday, March 7th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating, two have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $15.30.

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Macy's Price Performance

Shares of M stock traded down $0.11 during trading hours on Monday, hitting $13.17. 6,652,992 shares of the company's stock were exchanged, compared to its average volume of 5,983,817. Macy's has a 52 week low of $12.60 and a 52 week high of $20.70. The stock has a market cap of $3.66 billion, a price-to-earnings ratio of 22.31 and a beta of 2.07. The company has a debt-to-equity ratio of 0.67, a current ratio of 1.26 and a quick ratio of 0.17. The stock's 50-day moving average is $14.42 and its 200-day moving average is $15.30.

Hedge Funds Weigh In On Macy's

Several institutional investors and hedge funds have recently modified their holdings of the business. Trifecta Capital Advisors LLC bought a new position in Macy's during the 4th quarter worth $34,000. Jones Financial Companies Lllp boosted its position in shares of Macy's by 82.1% during the 4th quarter. Jones Financial Companies Lllp now owns 2,149 shares of the company's stock worth $36,000 after acquiring an additional 969 shares in the last quarter. Quest Partners LLC bought a new position in Macy's in the third quarter valued at approximately $35,000. Kestra Investment Management LLC acquired a new position in Macy's during the fourth quarter valued at approximately $38,000. Finally, Bessemer Group Inc. lifted its position in shares of Macy's by 495.5% during the 4th quarter. Bessemer Group Inc. now owns 3,412 shares of the company's stock worth $58,000 after buying an additional 2,839 shares during the last quarter. 87.36% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, CEO Antony Spring sold 3,124 shares of the stock in a transaction dated Tuesday, March 25th. The shares were sold at an average price of $13.74, for a total value of $42,923.76. Following the transaction, the chief executive officer now directly owns 272,680 shares of the company's stock, valued at $3,746,623.20. This represents a 1.13 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Adrian V. Mitchell sold 3,489 shares of the company's stock in a transaction dated Tuesday, March 25th. The shares were sold at an average price of $13.74, for a total transaction of $47,938.86. Following the completion of the transaction, the executive vice president now owns 116,165 shares in the company, valued at approximately $1,596,107.10. This trade represents a 2.92 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 7,013 shares of company stock valued at $96,359 in the last quarter. Company insiders own 2.77% of the company's stock.

Macy's Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Friday, March 14th will be paid a $0.1824 dividend. The ex-dividend date is Friday, March 14th. This represents a $0.73 dividend on an annualized basis and a yield of 5.54%. This is a boost from Macy's's previous quarterly dividend of $0.17. Macy's's dividend payout ratio (DPR) is currently 35.44%.

About Macy's

Macy's, Inc engages in the retail of apparel, accessories, cosmetics, home furnishings, and other consumer goods. The firm's brands include Macy's, Bloomingdale's, and Bluemercury. It offers men's, women's, and children's apparel, women's accessories, intimate apparel, shoes, cosmetics, fragrances, as well as home and miscellaneous products.