Macy's, Inc. (NYSE:M) executive vice president and chief human resources officer, Danielle L. Kirgan, has recently sold a portion of her company shares, according to the latest regulatory filings. On July 10, 2024, Kirgan sold 24,147 shares of the retail giant's common stock at a weighted average price of $18.9553, netting a total of $457,713.
The sale was executed in multiple transactions with prices ranging from $18.825 to $19.14. The transactions were reported to be related to the vesting of restricted shares and were primarily to cover tax withholding obligations, as indicated in the footnotes of the Form 4 filing. This does not represent a discretionary sale by Kirgan.
In addition to the sale, on July 9, 2024, Kirgan acquired 47,512 shares of Macy's common stock, which is equivalent to the number of restricted stock units vested. These units were granted on July 9, 2020, and are set to vest in four equal installments annually from the grant date. The acquisition of these shares did not involve any monetary transaction, as they were obtained through the vesting of previously granted restricted stock units.
Following these transactions, Kirgan's direct ownership in Macy's, Inc. stands at 348,000 shares of common stock. The recent filings provide investors with insight into the trading activities of one of Macy's top executives, reflecting changes in their stake in the company.
In other recent news, Macy's Inc. (NYSE:M) has seen a flurry of developments. Keith Credendino has been appointed as the new Chief Information Officer, succeeding Laura Miller, who is set to retire. Credendino's background in digital technology and data management is expected to drive Macy's transformation towards a more data-driven organization.
Investment firms Arkhouse Management and Brigade Capital Management have increased their takeover offer for Macy's to approximately $6.9 billion. This revised offer signals their continued interest in acquiring the iconic retailer.
Analyst firms have offered mixed views on Macy'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.
In its Q1 financial updates, Macy's reported 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 developments reflect Macy's ongoing strategic efforts and financial performance in the face of a challenging retail environment.
InvestingPro Insights
As Macy's, Inc. (NYSE:M) navigates the retail landscape, recent activities by executives such as Danielle L. Kirgan provide investors with a glimpse into the company's internal movements. While executive trading can reflect a range of motivations, it's also essential to consider the broader financial context in which these transactions occur. Macy's current market capitalization stands at approximately $5.37 billion, indicating its substantial presence in the retail sector.
Despite recent stock sales by an executive, Macy's is recognized as a prominent player in the Broadline Retail industry, which could signal a level of stability and industry influence. This is reinforced by the company's impressive track record of maintaining dividend payments for 22 consecutive years, showcasing a commitment to shareholder returns. The current dividend yield is at 3.69%, with a dividend growth over the last twelve months at 5.02%, suggesting a reliable income stream for investors.
Moreover, Macy's is trading at a high earnings multiple, with a P/E ratio of 441.14, which is significantly higher than the adjusted P/E ratio for the last twelve months as of Q1 2025, at 5.95. This discrepancy suggests that investors are anticipating future earnings growth, aligning with one of the InvestingPro Tips that net income is expected to grow this year. Investors interested in a deeper analysis of Macy's financial outlook can find additional insights, including 7 analysts who have revised their earnings upwards for the upcoming period, by visiting InvestingPro. For those looking to leverage these insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Keeping an eye on the performance metrics, Macy's has experienced a 1-week price total return of 4.96%, which may interest traders looking for short-term movements. However, the broader trend shows a 1-year price total return of 18.94%, which could be more relevant for long-term investors. With additional InvestingPro Tips available, investors can gain a comprehensive understanding of Macy's performance and potential investment opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.