Macy’s (NYSE:M) Shares Gap Down – What’s Next?

Shares of Macy’s, Inc. (NYSE:M) gapped down before the market opened on Thursday . The stock had previously closed at $21.51, but opened at $20.25. Macy’s shares last traded at $20.9070, with a volume of 4,430,140 shares.

Key Macy’s News

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

• Positive Sentiment: Macy’s reported second-quarter results ahead of Wall Street expectations, with earnings of approximately $0.63 per share versus the $0.37 consensus estimate and revenue of about $5.06 billion. Sales increased 1.1% year over year, while comparable sales continued to improve across the company’s nameplates. Macy’s raises annual profit forecast on tariff refunds, quarterly sales beat
• Positive Sentiment: The company raised its fiscal 2026 outlook, calling for EPS of $2.15 to $2.35 versus the roughly $2.11 analyst consensus. Revenue guidance was increased to approximately $21.7 billion to $21.8 billion, above expectations near $21.1 billion. Macy’s posts strong results, raises guidance as turnaround begins to take hold
• Positive Sentiment: The results suggest Macy’s turnaround is gaining traction, with continued growth across its Macy’s, Bloomingdale’s and Bluemercury nameplates and relatively steady consumer spending. Macy’s Reports Strong Second Quarter 2026 Results
• Neutral Sentiment: Unusually heavy call-option activity before the report indicated elevated speculative interest, but it does not establish a lasting fundamental trend.
• Negative Sentiment: Third-quarter EPS guidance of negative $0.23 to negative $0.19 was below the consensus estimate of negative $0.12, even though projected revenue was broadly in line. The weaker near-term outlook appears to be the primary reason the stock declined after the report.
• Negative Sentiment: Investors may be discounting the quality of the full-year profit increase because tariff refunds contributed to the quarter and may not be recurring. This tempered the positive impact of the earnings beat and raised annual guidance. Macy’s Beats Earnings Estimates and Boosts Guidance

Analyst Upgrades and Downgrades

Several analysts have issued reports on M shares. Evercore set a $22.00 price target on shares of Macy’s in a research report on Thursday, June 4th. Citigroup lifted their price objective on Macy’s from $22.00 to $24.00 and gave the company a “neutral” rating in a report on Tuesday, August 25th. Morgan Stanley reissued an “overweight” rating and issued a $30.00 price objective on shares of Macy’s in a research note on Monday, July 6th. TD Cowen upped their target price on Macy’s from $20.00 to $25.00 and gave the stock a “hold” rating in a research note on Monday, June 22nd. Finally, Zacks Research raised Macy’s from a “hold” rating to a “strong-buy” rating in a report on Monday, July 27th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $22.78.

Macy’s Stock Down 3.7%

The stock’s 50-day moving average price is $23.55 and its 200-day moving average price is $21.44. The company has a current ratio of 1.48, a quick ratio of 0.44 and a debt-to-equity ratio of 0.50. The stock has a market cap of $5.45 billion, a price-to-earnings ratio of 8.59 and a beta of 1.41.

Macy’s (NYSE:M) last posted its quarterly earnings results on Thursday, September 10th. The company reported $0.63 EPS for the quarter, topping analysts’ consensus estimates of $0.37 by $0.26. Macy’s had a net margin of 2.94% and a return on equity of 13.68%. The business had revenue of $5.06 billion during the quarter, compared to analysts’ expectations of $4.81 billion. During the same period last year, the company posted $0.41 earnings per share. The business’s quarterly revenue was up 1.1% on a year-over-year basis. 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. On average, sell-side analysts expect that Macy’s, Inc. will post 2.22 earnings per share for the current year.

Macy’s Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be paid a $0.1915 dividend. This represents a $0.77 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Macy’s’s dividend payout ratio (DPR) is 31.82%.

Insider Transactions at Macy’s

In related news, SVP Paul Griscom sold 10,077 shares of the firm’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 transaction, the senior vice president owned 25,373 shares of the company’s stock, valued at approximately $650,309.99. This trade represents a 28.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Thomas Edwards, Jr. sold 16,419 shares of Macy’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $24.89, for a total value of $408,668.91. Following the transaction, the executive vice president owned 20,000 shares of the company’s stock, valued at $497,800. This trade represents a 45.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System lifted its stake in Macy’s by 2,278.6% in the second quarter. California State Teachers Retirement System now owns 7,184,304 shares of the company’s stock valued at $169,190,000 after purchasing an additional 6,882,269 shares during the last quarter. Norges Bank purchased a new position in shares of Macy’s during the 4th quarter valued at $85,020,000. Marshall Wace LLP bought a new position in shares of Macy’s during the 4th quarter worth $69,562,000. Bank of New York Mellon Corp bought a new position in shares of Macy’s during the 2nd quarter worth $67,450,000. Finally, SG Americas Securities LLC increased its holdings in Macy’s by 1,344.4% in the 1st quarter. SG Americas Securities LLC now owns 3,059,374 shares of the company’s stock worth $55,344,000 after acquiring an additional 2,847,561 shares during the last quarter. Hedge funds and other institutional investors own 87.36% of the company’s stock.

Macy’s Company Profile

Macy’s, Inc is a leading American omnichannel retailer operating under the Macy’s brand, as well as specialty divisions Bloomingdale’s and Bluemercury. The company’s retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy’s seeks to deliver a seamless shopping experience that blends in-store service with online convenience.

The company’s product assortment spans men’s, women’s and children’s clothing, beauty and personal care products, housewares and home décor.