June 20, 2023 – According to its most recent 13F filing with the Securities & Exchange Commission, Natixis has cut its stake in Macy’s, Inc. (NYSE:M) by a staggering 84.7% in the fourth quarter of the previous year. The French multinational banking firm owned approximately 0.11% of the company’s total net worth, which amounts to $5,929,000 as per its recent SEC filing.
This announcement comes right after Macy’s last announced its quarterly earnings results on June 1st and reported $0.56 earnings per share (EPS) for the quarter, surpassing analysts’ consensus estimates of $0.45 by an impressive margin of $0.11. However, the company had revenue of only $4.98 billion during the quarter as compared to analyst projections of around $5.01 billion with a downswing of 6.8% on a year-over-year basis.
Macy’s Inc., an omni-channel retail organization that operates stores, websites, and mobile applications across the United States under brands like Macy’s, Bloomingdale’s and bluemercury caters to a variety of products ranging from cosmetics to home furnishings and apparel and accessories for men, women and kids.
The drastic cut in Natixis’ stake may prompt some speculation amongst investors regarding changes in their opinion concerning the future outlook for Macy’s or concerns over possible financial reversals that lie ahead.
However, several industry experts believe that this move could also signify Natixis moving toward a more diversified portfolio across multiple sectors instead.
Some investors have remained positive about Macy’s Inc.’s future prosperity despite its current financial performance due to their successful brand outlook on customer loyalty coupled with their innovative online presence since they’ve begun expanding digital sales up to nearly half of total revenues through e-commerce initiatives even during these trying times.
Analysts predict that if Macy’s Inc. stays its course with a diversified brand outlook and maintains its online presence, it could still see growth in sales in the future.
In conclusion, the decrease in stake of Macy’s by Natixis may create short-term fluctuations in the company’s stock performance, but the long-term prospects will inevitably depend on Macy’s ability to adapt seamlessly to a rapidly changing marketplace and embrace future challenges with determination and zeal.
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Macy’s, Inc.: A Diversely Successful Retailer Facing Shareholder Changes and Rating Speculation
Macy’s, Inc. is a leading omni-channel retailer that operates stores, websites, and mobile applications in the United States. The company offers various merchandise, including apparel and accessories for men, women and children, cosmetics, home furnishings and other consumer goods under the Macy’s, Bloomingdale’s and bluemercury brands.
The company has seen some significant changes to their shareholder structure recently with hedge funds and institutional investors acquiring new stakes in shares of Macy’s. FinTrust Capital Advisors LLC purchased a new stake in Macy’s worth $26,000 during Q4 of 2022 while Armstrong Advisory Group Inc. acquired a stake worth about $31,000 during the same period. Estabrook Capital Management increased its position by 77.8% during Q1 of 2023 and currently owns 1,600 shares worth $39,000 after purchasing an additional 700 shares. Quadrant Capital Group LLC also increased its position by 57.7% during Q3 of 2022 now owning approximately 1,815 shares worth $28,000 after adding an additional 664 shares to their existing position. Finally Lazard Asset Management LLC increased its stake by 52.3% in Q1 of 2023 now owning close to $48k worth of stock after purchasing an additional 685 shares.
As of June 20th, the NYSE:M opened at $15.85 with a market capitalization of $4.32 billion while presenting a P/E ratio of 4:20 with a P/E/G ratio of .45 and a beta value of 1:81. Additionally the firm is currently trading within its range between an annual high point of $25:12 and low point at $12:80. However despite this well-rounded performance history Macy’s has struggled in terms of maintaining profitability producing a payout ratio (DPR) which stands at just below 18%.
Recent reports seem to be weighing in favor of a hold rating with two analysts speculating the stock could be sell-worthy while six have suggested buying. Citigroup dropped Macy’s target price from $16.00 to $15.00 while Bank of America dropped theirs from $21.00 to $13.00. Telsey Advisory Group claims that Macy’s market performance is at par and has maintained their ‘market perform’ rating, assigning a price objective of $25:00 for the foreseeable future.
Overall, Macy’s remains an intriguing stock for investors as its wide product offering makes it a diversely successful business model. Despite, lesser profitability when compared to its peers the retailer maintains strength in terms of performance history with steady earnings growth year-on-year and a well-established reputation throughout the US retail industry.
