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Macy's stock has surged in recent days thanks to an online trading community throwing their support behind highly-shorted stocks.
Motivated by collective outrage, Reddit forum wallstreetbets began buying stocks to companies that major investors were essentially betting against.
While it started with Gamestop (GME), forum users quickly applied their technique to a number of different companies, including AMC and Macy's (M).
Macy's stock climbed from a close of US$12.32 on January 21, to a close of US$17.73 on January 27th. However, the following day, shares dropped to US$15.57.
The sudden drop is partly due to controversial action taken by several trading platforms, which began pausing or restricting trading of certain shares amid the unprecedented activity.
While some brokers are beginning to allow access again, traders should be extremely cautious amid so much volatility.
Macy's, Inc is a department stores business with stocks listed in the US. Macys shares (M) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$15.72 – an increase of 5.01% over the previous week. Here's how to invest if you're based in Australia.
How to buy shares in Macys
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Macys. Find the share by name or ticker symbol: M. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Macys reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$15.72, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Macys, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Macys. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
🧪How we chose these brokersFor our Top Picks, we compared our Finder partners using a proprietary algorithm in August 2020. Keep in mind that our top picks may not always be the best for you, and you're encouraged to compare for yourself to find one that works for you. Read our full methodology here to find out more.
What's in this guide?
- Macys key stats
- Compare share trading platforms
- Is Macys stock a buy or sell?
- Macys performance over time
- Can I short Macys shares?
- Is Macys suitable for ethical investing?
- Are Macys shares over-valued?
- Macys's financials
- How volatile are Macys shares?
- Does Macys pay a dividend?
- Have Macys shares ever split?
- Other common questions
Macys share priceUse our graph to track the performance of M stocks over time.
Macys shares at a glance
|52-week range||US$4.38 - US$22.3|
|50-day moving average||US$14.1376|
|200-day moving average||US$9.4481|
|Dividend yield||US$0.755 (4.94%)|
|Earnings per share (TTM)||US$1.81|
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Is it a good time to buy Macys stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Macys price performance over time
|1 week (2021-02-18)||9.78%|
|1 month (2021-01-26)||-0.76%|
|3 months (2020-11-25)||42.91%|
|6 months (2020-08-26)||141.47%|
|1 year (2020-02-26)||15.67%|
|2 years (2019-02-26)||-36.41%|
|3 years (2018-02-26)||-42.73%|
|5 years (2016-02-26)||-63.80%|
Is Macys under- or over-valued?
Valuing Macys stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Macys's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Macys's P/E ratio
Macys's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 3x. In other words, Macys shares trade at around 3x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
Macys's PEG ratio
Macys's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.9128. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Macys's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Macys's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$20 million (£0.0 million).
The EBITDA is a measure of a Macys's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$19.6 billion|
|Gross profit TTM||US$10.2 billion|
|Return on assets TTM||-2.01%|
|Return on equity TTM||-90.7%|
|Market capitalisation||US$4.9 billion|
TTM: trailing 12 months
Shorting Macys shares
There are currently 52.6 million Macys shares held short by investors – that's known as Macys's "short interest". This figure is 51.6% down from 108.6 million last month.
There are a few different ways that this level of interest in shorting Macys shares can be evaluated.
Macys's "short interest ratio" (SIR)
Macys's "short interest ratio" (SIR) is the quantity of Macys shares currently shorted divided by the average quantity of Macys shares traded daily (recently around 31.9 million). Macys's SIR currently stands at 1.65. In other words for every 100,000 Macys shares traded daily on the market, roughly 1650 shares are currently held short.
However Macys's short interest can also be evaluated against the total number of Macys shares, or, against the total number of tradable Macys shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Macys's short interest could be expressed as 0.17% of the outstanding shares (for every 100,000 Macys shares in existence, roughly 170 shares are currently held short) or 0.191% of the tradable shares (for every 100,000 tradable Macys shares, roughly 191 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Macys.
Find out more about how you can short Macys stock.
Macys's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Macys.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Macys's total ESG risk score
Total ESG risk: 15.46
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Macys's overall score of 15.46 (as at 01/01/2019) is excellent – landing it in it in the 9th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Macys is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Macys's environmental score
Environmental score: 6.11/100
Macys's environmental score of 6.11 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Macys is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Macys's social score
Social score: 9.73/100
Macys's social score of 9.73 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Macys is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Macys's governance score
Governance score: 7.13/100
Macys's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Macys is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Macys's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Macys scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Macys has, for the most part, managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||15.46|
|Total ESG percentile||8.52|
|Environmental score percentile||4|
|Social score percentile||4|
|Governance score percentile||4|
|Level of controversy||2|
Macys share dividends
Dividend payout ratio: 74.02% of net profits
Recently Macys has paid out, on average, around 74.02% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 26.82% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Macys shareholders could enjoy a 26.82% return on their shares, in the form of dividend payments. In Macys's case, that would currently equate to about $0.755 per share.
Macys's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Macys's most recent dividend payout was on 1 April 2020. The latest dividend was paid out to all shareholders who bought their shares by 12 March 2020 (the "ex-dividend date").
Have Macys's shares ever split?
Macys's shares were split on a 2:1 basis on 12 June 2006. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Macys shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Macys shares which in turn could have impacted Macys's share price.
Macys share price volatility
Over the last 12 months, Macys's shares have ranged in value from as little as US$4.38 up to US$22.3. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Macys's is 2.1094. This would suggest that Macys's shares are significantly more volatile than the average for this exchange and represent a higher risk.
Macy's, Inc., an omnichannel retail organization, operates stores, websites, and mobile applications under the Macy's, Bloomingdale's, and bluemercury brands. It sells a range of merchandise, including apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods. As of February 1, 2020, the company operated 775 store locations in 43 states, the District of Columbia, Puerto Rico, and Guam. It also operates in Dubai, the United Arab Emirates and Al Zahra, Kuwait under the license agreements. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in 2007. Macy's, Inc. was founded in 1830 and is based in New York, New York.
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