Macy's Inc Stock Surges on Strong Q1 Earnings Beat

Macy's Q1 Earnings Report What You Need To Know

Macy's (M) Upgraded to Positive by OTR Global

Still, Macy's stock is now up almost 30% this year, a clear sign that many on Wall Street also believe that Macy's is back on track.

Shares of Macy's Inc surged more than 10% in premarket trading on Wednesday after the company reported first quarter earnings that finished above Wall Street estimate. Macy's had a return on equity of 24.93% and a net margin of 6.23%. The company had revenue of $8.67 billion during the quarter, compared to analysts' expectations of $8.70 billion.

Macy's Chairman and Chief Executive Officer Jeff Gennette made the following statement during the announcement of the earnings report: "Macy's, Inc.'s results for the first quarter of 2018 reflect continuing momentum in the business".

Net sales rose 3.6 percent to $5.54 billion in the quarter.

Shares of Macy's Inc. The company has a debt-to-equity ratio of 1.04, a current ratio of 1.47 and a quick ratio of 0.45.

The stock has a market cap of $9,296.40, a price-to-earnings ratio of 8.41, a price-to-earnings-growth ratio of 0.99 and a beta of 0.75. (NYSE:M) hit a new 52-week high and low during trading on Thursday.

In other news, Director Marna C. Whittington sold 20,000 shares of the stock in a transaction dated Friday, March 2nd. The stock was sold at an average price of $29.42, for a total transaction of $294,200.00. 370,623 shares of the company's stock were exchanged, compared to its average volume of 10,037,056. The stock was sold at an average price of $29.25, for a total transaction of $265,941.00. The disclosure for this sale can be found here.

In related news, Director Deirdre P. Connelly sold 9,092 shares of Macy's stock in a transaction that occurred on Thursday, March 8th.

Several hedge funds have recently added to or reduced their stakes in the stock.

Maybe Macy's Inc. wasn't just coasting on the holiday spirit after all. Insiders sold 107,392 shares of company stock valued at $3,173,164 over the last quarter. Advisory Services Network LLC raised its position in Macy's by 18.1% during the fourth quarter. On an owned plus licensed basis, comparable sales were up 4.2 percent for the first quarter of 2018. Finally, Contrarius Investment Management Ltd increased its stake in shares of Macy's by 2.5% in the 1st quarter. Accern also gave media coverage about the company an impact score of 44.7083669462626 out of 100, indicating that recent media coverage is somewhat unlikely to have an impact on the stock's share price in the immediate future.

A number of research analysts recently weighed in on M shares.

Macy's (NYSE:M) last posted its earnings results on Tuesday, February 27th. ValuEngine downgraded Macy's from a "buy" rating to a "hold" rating in a research report on Sunday, December 31st. BMO Capital Markets set a $38.00 price target on shares of Macy's and gave the company a buy rating in a research report on Friday, January 5th. Finally, Morgan Stanley lowered shares of Macy's from an "equal weight" rating to an "underweight" rating and cut their price target for the stock from $29.71 to $25.00 in a report on Thursday, May 10th.

Analysts on average were expecting earnings of 37 cents per share, and revenue of $5.36 billion. Macy's now has an average rating of "Hold" and an average price target of $26.49.

Macy's, Inc., is an omni-channel retail company that operates outlets, mobile applications, and websites.

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