In a recent transaction, Paul Griscom, Senior Vice President and Controller of Macy's, Inc. (NYSE:M), sold shares of the company's stock, resulting in a notable change in his holdings. On July 10, 2024, Griscom sold 336 shares at an average price of $18.9654, with the total sale amounting to approximately $6,372. The transaction was part of a sale to cover tax withholding obligations related to the vesting of restricted shares, which is a routine process for executives receiving stock-based compensation.
The shares sold by Griscom were part of a larger set of transactions that took place over the course of two days. On July 9, 2024, he also acquired 1,131 shares of common stock through the vesting of restricted stock units (RSUs). Each RSU represents the equivalent of one share of Macy's common stock, and this particular grant of RSUs was part of a compensation package that began vesting in equal installments starting from the first anniversary of the grant date, which was July 9, 2020.
The sales transactions occurred within a price range of $18.83 to $19.13 per share. Griscom has undertaken to provide further details about the number of shares sold at each price upon request by Macy's or the staff of the Securities and Exchange Commission.
Following these transactions, Griscom's direct ownership in Macy's common stock has been adjusted to 26,348 shares. It is worth noting that the sale conducted by Griscom was not a discretionary transaction, but rather a necessary step to fulfill tax obligations that come with the vesting of restricted shares.
Investors often keep a close eye on insider transactions as they may provide insights into the executives' perspectives on the company's current valuation and future prospects. However, it is also important to consider that such sales can be part of standard compensation and tax planning strategies and do not necessarily reflect a lack of confidence in the company.
Macy's, Inc. is a prominent retail brand with a long history in the department store industry. The company's stock is publicly traded, and its performance is closely watched by investors and market analysts.
In other recent news, Macy's Inc. (NYSE:M) has appointed Keith Credendino as the new Chief Information Officer (CIO), succeeding the retiring Laura Miller. Credendino's experience spans various senior roles in digital technology and data management, and his appointment is expected to support Macy's growth strategy. In other developments, investment firms Arkhouse Management and Brigade Capital Management have increased their takeover offer for Macy's to approximately $6.9 billion.
On the analyst front, TD Cowen has raised its price target for Macy's shares to $21.00 while maintaining a Hold rating. Conversely, UBS has maintained its Sell rating with a steady price target of $10.00. JPMorgan (NYSE:JPM) has increased its price target to $27.00, maintaining an Overweight rating.
In terms of financials, Macy's reported robust 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 recent developments in the company's strategic efforts and financial performance.
InvestingPro Insights
Amid the recent insider transactions at Macy's, Inc. (NYSE:M), market participants are evaluating the company's financial health and future outlook. Macy's is a key player in the Broadline Retail industry, and its stock price movements have shown to be quite volatile. Here are some insights from InvestingPro to consider:
According to InvestingPro, Macy's is currently trading at a high earnings multiple, with a P/E ratio of 441.14. However, when adjusted for the last twelve months as of Q1 2025, the P/E ratio presents a more grounded figure of 5.95. This significant discrepancy could indicate that the market has high expectations for future earnings growth or may reflect a recent adjustment in the company's earnings.
InvestingPro Data further reveals that Macy's has a market capitalization of $5.37 billion USD and maintains a solid dividend yield of 3.69%, with a consistent track record of dividend payments for 22 consecutive years. This could be appealing to income-focused investors. Additionally, the company's revenue for the last twelve months as of Q1 2025 stands at $23.69 billion USD, despite a revenue growth decline of -5.44% during the same period.
For those looking to delve deeper into the company's financials and performance metrics, there are additional InvestingPro Tips available. For instance, investors might be interested to know that 7 analysts have revised their earnings upwards for the upcoming period, which could suggest a positive sentiment around the company's earning potential. Furthermore, analysts predict that Macy's will remain profitable this year, a reassuring sign for potential investors.
To access these insights and more, investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 5 additional InvestingPro Tips listed for Macy's, Inc. on InvestingPro that could further inform investment decisions.
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