Macy’s (NYSE:M) Shares Gap Down – Should You Sell?

Macy’s, Inc. (NYSE:M) shares gapped down prior to trading on Thursday . The stock had previously closed at $21.51, but opened at $20.25. Macy’s shares last traded at $20.9070, with a volume of 4,430,140 shares changing hands.

Key Macy’s News

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

• Positive Sentiment: Macy’s exceeded analysts’ expectations for second-quarter earnings and revenue. Reported adjusted EPS was approximately $0.40 versus the $0.37 consensus, while revenue rose 1.1% year over year to roughly $4.9 billion. The company also reported growth across its major nameplates. Macy’s Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The retailer raised its fiscal 2026 outlook, projecting EPS of $2.15-$2.35 versus a $2.11 consensus and revenue of approximately $21.7-$21.8 billion, above the $21.1 billion consensus. Its sales outlook was supported by higher comparable sales expectations and continued demand from middle- and higher-income customers. Macy’s Posts Strong Results and Raises Guidance
• Positive Sentiment: Management said premium merchandise and tariff refunds helped results. The improving sales trend and a roughly 3.5% dividend yield may appeal to income-focused investors if the turnaround continues and cash generation remains solid. Premium Goods Drive Sales Growth
• Neutral Sentiment: BTIG Research reaffirmed its “neutral” rating, indicating that the earnings improvement and valuation are balanced by execution risks in the ongoing turnaround. BTIG Research Rating
• Negative Sentiment: Despite the beat and guidance increase, investors initially focused on Macy’s projected third-quarter adjusted loss of $0.19-$0.23 per share, which is wider than the $0.12 consensus loss. Softer near-term comparable-sales expectations and broader market weakness also pressured sentiment. Macy’s Stock and Fiscal 2026 Outlook

Analyst Ratings Changes

A number of analysts have commented on M shares. Citigroup boosted their price target on shares of Macy’s from $22.00 to $24.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 25th. Zacks Research upgraded shares of Macy’s from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 27th. UBS Group boosted their target price on Macy’s from $9.00 to $10.00 and gave the stock a “sell” rating in a report on Wednesday, August 26th. BTIG Research restated a “neutral” rating on shares of Macy’s in a research report on Friday. Finally, TD Cowen increased their price target on Macy’s from $20.00 to $25.00 and gave the company a “hold” rating in a research note on Monday, June 22nd. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Macy’s currently has a consensus rating of “Hold” and an average target price of $22.78.

Macy’s Stock Up 7.5%

The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.44 and a current ratio of 1.59. The stock’s fifty day simple moving average is $23.47 and its two-hundred day simple moving average is $21.43. The company has a market capitalization of $5.79 billion, a price-to-earnings ratio of 8.07 and a beta of 1.41.

Macy’s (NYSE:M) last announced its quarterly earnings data on Thursday, September 10th. The company reported $0.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.26. Macy’s had a net margin of 3.29% and a return on equity of 13.21%. The company had revenue of $5.06 billion for the quarter, compared to analysts’ expectations of $4.81 billion. During the same quarter in the previous year, the company posted $0.41 EPS. The business’s revenue was up 1.1% compared to the same quarter last year. Macy’s has set its Q3 2026 guidance at -0.230–0.190 EPS and its FY 2026 guidance at 2.150-2.350 EPS. On average, sell-side analysts anticipate that Macy’s, Inc. will post 2.29 EPS for the current year.

Macy’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be paid a dividend of $0.1915 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $0.77 annualized dividend and a dividend yield of 3.5%. Macy’s’s dividend payout ratio (DPR) is currently 31.82%.

Insiders Place Their Bets

In other news, EVP Thomas Edwards, Jr. sold 16,419 shares of the company’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $24.89, for a total transaction of $408,668.91. Following the completion of the sale, the executive vice president directly owned 20,000 shares of the company’s stock, valued at $497,800. This represents a 45.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Paul Griscom sold 10,077 shares of the stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $25.63, for a total value of $258,273.51. Following the completion of the transaction, the senior vice president owned 25,373 shares of the company’s stock, valued at $650,309.99. This trade represents a 28.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 1.05% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Smartleaf Asset Management LLC increased its position in shares of Macy’s by 51.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company’s stock worth $34,000 after acquiring an additional 526 shares in the last quarter. CIBC Private Wealth Group LLC lifted its position in shares of Macy’s by 35.9% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company’s stock valued at $41,000 after acquiring an additional 486 shares in the last quarter. Allworth Financial LP boosted its stake in Macy’s by 37.0% in the 2nd quarter. Allworth Financial LP now owns 2,270 shares of the company’s stock worth $53,000 after purchasing an additional 613 shares during the period. IFP Advisors Inc grew its position in Macy’s by 263.3% during the 4th quarter. IFP Advisors Inc now owns 2,427 shares of the company’s stock worth $54,000 after purchasing an additional 1,759 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd purchased a new position in Macy’s during the 4th quarter worth approximately $54,000. 87.36% of the stock is currently owned by institutional investors and hedge funds.

Macy’s Company Profile

Macy’s, Inc is an American omnichannel retailer that sells a broad range of merchandise through department stores, specialty stores and digital platforms. Its product offerings include apparel, accessories, beauty products, home furnishings, jewelry, furniture and other consumer goods.

The company operates through several well-known retail banners, including Macy’s, Bloomingdale’s and Bluemercury. Macy’s serves customers primarily in the United States through its stores and e-commerce websites, while Bloomingdale’s offers fashion, accessories, beauty and home merchandise through department stores, outlets and digital channels.