Macy’s Inc. (M) shares are trading at lower $6.03 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $6.62.
To add more color to this target, the company’s high over the last year is $18.57 and the low is $4.38. Over the last 52 weeks, M is down -61.20% while the S&P 500 is up 8.70%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, M reported a profit of $1.01 billion. Macy’s Inc. also saw revenues increase to $3.73 billion. In addition, M has free cash flow of -$296.0 million as of 07-2020. The company’s EBITDA came in at -$392.0 million which compares well with its peers.
M booked profit margins of -17.60%, its Return on Equity (ROE) is -84.10%, and its Return on Assets is -18.40%. All told, it is clear that, M needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. M has a short ratio of 4.83 and outstanding shares of 311.20M.
M has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 19.78 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -11.82. Macy’s Inc. M also noted assets of $17.61 billion at the end of the last quarter. Investors should also keep an eye on sector updates as M has historically followed its peers on positive news.
All told, Macy’s Inc. M has strung together solid data and demonstrated underlying fundamentals. At its current valuation, M represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Macy’s Inc. M is now commanding a market cap of 1.90B and a float of 307.85M. M is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of M stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in M, either long or short, and we have not been compensated for this article.