The Case for and Against Macy’s, Inc. (M)

Macy’s, Inc. (M) is an interesting player in the Services space, with a focus on Department Stores. The stock has been active on the tape, currently trading at $22.00, down from yesterday’s close by -2.87%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Macy’s, Inc. (M) currently trades with a market capitalization of $6.83 Billion.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For M, the company currently has $783 Million of cash on the books, which is offset by $16 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $1.23 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.19 on a per share basis this quarter. Perhaps, that suggests something about why 45.89% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how M has been acting. Looking at the stock’s movement on the chart, Macy’s, Inc. recorded a 52-week high of $45.41. It is now trading 23.41% off that level. The stock is trading $21.95 its 50-day moving average by -0.050000000000001%. The stock carved out a 52-week low down at $19.32.

In recent action, Macy’s, Inc. (M) has made a move of +9.24% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 53.87, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 11.71% with $303.58 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of M.

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