Macy’s (NYSE:M) Shares Up 6.7% on Earnings Beat

Macy’s, Inc. (NYSE:M)’s stock price traded up 6.7% during trading on Friday after the company announced better than expected quarterly earnings. The stock traded as high as $21.65 and last traded at $21.8670. Approximately 4,855,123 shares changed hands during mid-day trading, a decline of 24% from the average daily volume of 6,429,299 shares. The stock had previously closed at $20.50.

The company reported $0.63 earnings per share for the quarter, beating analysts’ consensus estimates of $0.37 by $0.26. The firm had revenue of $5.06 billion during the quarter, compared to the consensus estimate of $4.81 billion. Macy’s had a return on equity of 13.68% and a net margin of 2.94%.The business’s revenue was up 1.1% compared to the same quarter last year. During the same period last year, the company earned $0.41 earnings per share. 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.

Macy’s Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be given a $0.1915 dividend. This represents a $0.77 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Tuesday, September 15th. Macy’s’s dividend payout ratio (DPR) is 31.40%.

Key Macy’s News

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

• Positive Sentiment: Macy’s reported second-quarter earnings and revenue above Wall Street expectations. Revenue increased 1.1% year over year to approximately $4.9 billion, while adjusted EPS was about $0.40 versus the $0.37 consensus estimate. Macy’s Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised fiscal 2026 revenue guidance to roughly $21.68 billion-$21.83 billion and EPS guidance to $2.15-$2.35, above the prior outlook and analyst consensus. Management also increased its comparable-sales expectations. Macy’s Raises Full-Year Outlook Again on Sales Growth
• Positive Sentiment: Growth in premium merchandise and stronger spending from middle- and high-income customers supported sales across Macy’s brands. Tariff refunds also contributed to the improved profit outlook. Macy’s Raises Outlook as Premium Goods Drive Sales Growth
• Positive Sentiment: The post-earnings pullback has increased the appeal of Macy’s roughly 3.5% dividend yield for income-oriented investors, provided the turnaround and cash generation continue to improve. Should Income Investors Buy the Dip in Macy’s Stock
• Neutral Sentiment: BTIG Research reaffirmed its “neutral” rating, indicating that the improved annual outlook may already be balanced by execution and consumer-demand risks. Crude Oil Surges; Macy’s Shares Fall After Q2 Results
• Negative Sentiment: Fiscal third-quarter EPS guidance of a $0.19-$0.23 loss was materially weaker than the roughly $0.12 loss analysts expected, while comparable-sales momentum was viewed as less robust. That near-term earnings risk overshadowed the full-year guidance increase and led to a post-earnings decline in the stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on M shares. Citigroup boosted their price target on Macy’s from $22.00 to $24.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 25th. Evercore set a $22.00 price objective on shares of Macy’s in a research report on Thursday, June 4th. Weiss Ratings upgraded shares of Macy’s from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, August 21st. BTIG Research reaffirmed a “neutral” rating on shares of Macy’s in a report on Friday. Finally, Telsey Advisory Group increased their price target on shares of Macy’s from $20.00 to $23.00 and gave the company a “market perform” rating in a report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $22.78.

Insider Activity

In other Macy’s news, SVP Paul Griscom sold 10,077 shares of the business’s stock in a transaction dated 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 sale, the senior vice president owned 25,373 shares of the company’s stock, valued at $650,309.99. The trade was a 28.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Thomas Edwards, Jr. sold 16,419 shares of the stock in a transaction that occurred 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 transaction, the executive vice president owned 20,000 shares in the company, valued at approximately $497,800. The trade was a 45.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.05% of the stock is owned by insiders.

Institutional Trading of Macy’s

Institutional investors have recently modified their holdings of the stock. 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 purchasing an additional 526 shares during the period. CIBC Private Wealth Group LLC grew its stake in Macy’s by 35.9% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company’s stock worth $41,000 after buying an additional 486 shares in the last quarter. Allworth Financial LP grew its stake in Macy’s by 37.0% during the second quarter. Allworth Financial LP now owns 2,270 shares of the company’s stock worth $53,000 after buying an additional 613 shares in the last quarter. IFP Advisors Inc increased its holdings in Macy’s by 263.3% in the 4th quarter. IFP Advisors Inc now owns 2,427 shares of the company’s stock valued at $54,000 after buying an additional 1,759 shares during the period. Finally, Aster Capital Management DIFC Ltd bought a new position in Macy’s in the 4th quarter valued at about $54,000. 87.36% of the stock is currently owned by institutional investors.

Macy’s Stock Up 6.7%

The firm’s 50-day moving average price is $23.49 and its 200 day moving average price is $21.42. The company has a market capitalization of $5.75 billion, a price-to-earnings ratio of 9.01 and a beta of 1.41. The company has a current ratio of 1.48, a quick ratio of 0.44 and a debt-to-equity ratio of 0.50.

About Macy’s

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.