Macy's, Inc. (NYSE:M) director Jeffrey Gennette has recently engaged in significant stock transactions, according to the latest SEC filings. On March 25, Gennette sold 19,609 shares of Macy's common stock at a weighted average price of $20.2802, totaling approximately $397,674. The shares were sold in multiple transactions at prices ranging from $20.225 to $20.335. It's important to note that these sales were made to cover tax withholding obligations upon the vesting of restricted shares and were not discretionary transactions.
In addition to the sale, Gennette also acquired 40,323 shares of Macy's common stock on March 24, at no cost, which is standard for restricted stock units upon vesting. Each restricted stock unit represents the equivalent of one share of Macy's common stock. After these transactions, Gennette's direct ownership in Macy's stands at 1,015,015 shares.
The transactions occurred shortly after the vesting of restricted stock units granted to Gennette on March 24, 2022. These units, totaling 161,290, were set to vest in four equal installments starting on the first anniversary of the grant date.
Investors often keep a close eye on insider transactions as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. Macy's, with its well-known presence in the retail sector, continues to be a closely watched company by market participants.
The stock transactions were conducted under the guidelines of the Securities and Exchange Commission, and full details of the transactions can be provided upon request. Macy's has not made any further comments regarding these transactions.
InvestingPro Insights
Macy's, Inc. (NYSE:M), a prominent player in the Broadline Retail industry, has seen a variety of financial movements that are of particular interest to investors following the company's stock and insider transactions. According to the latest data from InvestingPro, Macy's boasts a market capitalization of $5.31 billion USD. This sizeable figure underscores the company's significant presence in the retail market. Despite a recent decline in revenue, with a -6.22% change over the last twelve months as of Q4 2024, Macy's has maintained a strong gross profit margin of 40.74% during the same period, indicating a robust ability to control costs relative to sales.
Investors monitoring Macy's stock will find the company's P/E ratio noteworthy. Currently, Macy's is trading at a high earnings multiple of 50.73, which may suggest expectations of future earnings growth or a premium valuation compared to industry peers. This aligns with one of the InvestingPro Tips, which highlights that net income is expected to grow this year. Additionally, despite a significant price drop over the last week, with a 1-week price total return of -8.87%, Macy's has experienced a large price uptick over the last six months, boasting an impressive 84.16% return.
For those seeking more in-depth analysis and additional insights, there are more InvestingPro Tips available at https://www.investing.com/pro/M, which may further inform investment decisions. For instance, while 8 analysts have revised their earnings estimates downwards for the upcoming period, the company has been profitable over the last twelve months, and analysts predict it will remain profitable this year. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. The insights provided by InvestingPro could be a valuable tool for understanding the dynamics affecting Macy's stock and its position in the retail industry.
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