Macy's, Inc. (NYSE:M) Chairman and CEO Antony Spring made headlines with his recent stock transactions, which included selling shares worth over $359,000. The executive's trading activities were disclosed in a recent filing with the Securities and Exchange Commission.
On July 10, Spring sold a total of 18,981 shares of Macy's common stock at an average price of $18.9567, netting a total of approximately $359,817. The shares were sold in a range of prices from $18.825 to $19.14. Notably, this sale was executed to cover tax withholding obligations related to the vesting of restricted shares and was not a discretionary sale by Spring.
The transaction followed an acquisition of shares by Spring on July 9, when he received 37,349 shares of Macy's common stock, equivalent to the same number of restricted stock units (RSUs) that vested. These RSUs were granted on July 9, 2020, and are vesting in four equal installments starting from the first anniversary of the grant date. The value of these acquired shares was not disclosed, as they were obtained at a price of $0 per share, indicating that they were part of a pre-determined compensation plan.
Following the sale, Spring's direct ownership in Macy's stands at 267,265.1058 shares. Investors often monitor the buying and selling of stocks by company executives as it can provide insights into their perspective on the company's current valuation and future prospects.
Macy's, headquartered in New York, is a well-known retail brand with a significant presence in department stores across the United States. These transactions by a high-ranking executive are of interest to shareholders and potential investors, as they reflect the actions of an individual with intimate knowledge of the company's operations and strategic direction.
In other recent news, Macy's Inc. (NYSE:M) has seen several notable developments. The company appointed Keith Credendino as the new Chief Information Officer, taking over from the retiring Laura Miller. Credendino's previous roles include senior positions at Inspire Brands, The Home Depot (NYSE:HD), and Cox Enterprises. His appointment is expected to drive Macy's towards a more data-driven organization, focusing on system modernization and efficiency improvements.
Investment firms Arkhouse Management and Brigade Capital Management have increased their takeover offer for Macy's to approximately $6.9 billion, reflecting their continued interest in acquiring the iconic retailer. Analyst firms have offered mixed views on the company's financial outlook. TD Cowen raised its price target for Macy's shares to $21.00, while UBS maintained its Sell rating with a steady price target of $10.00. JPMorgan (NYSE:JPM) increased its price target to $27.00, maintaining an Overweight rating.
Macy's reported Q1 results with net sales of $4.8 billion and an adjusted EPS of $0.27, surpassing its forecast. The company also raised its EPS guidance for fiscal year 2024 to a range of $2.55 to $2.90, an increase of 3% at the midpoint. However, the gross margin forecast for the fiscal year was adjusted downward, reflecting a more conservative expectation for profit margins. These are the recent developments for Macy's.
InvestingPro Insights
In light of the recent news about Macy's, Inc. (NYSE:M) Chairman and CEO Antony Spring's stock transactions, an analysis of the company's financial health and stock performance may offer additional insights. According to InvestingPro data, Macy's boasts a substantial market capitalization of $5.37 billion, underscoring its significant presence in the retail industry. Despite facing a challenging retail environment, Macy's has maintained a consistent dividend payment streak for 22 consecutive years, showcasing its commitment to shareholder returns. This dedication is reflected in a healthy dividend yield of 3.69% as of the last payment.
An InvestingPro Tip suggests that Macy's is a prominent player in the Broadline Retail industry, which aligns with the company's well-known brand and extensive department store network. Additionally, the company is trading at a high earnings multiple, with a P/E ratio of 441.14, indicating that investors may have high expectations for future earnings growth. This optimism is supported by the fact that Macy's has been profitable over the last twelve months, and net income is expected to grow this year.
For investors seeking a deeper dive into Macy's financials and stock performance, InvestingPro offers additional tips and data on the company's prospects. Using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these insights. There are currently 7 analysts who have revised their earnings estimates upwards for the upcoming period, indicating a positive outlook for the company's financial performance. To explore these and more tips, investors can visit https://www.investing.com/pro/M for a total of 8 detailed InvestingPro Tips that could inform investment decisions.
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