EVP Of Macy's Makes $191K Sale

Disclosed on August 26, Adrian V Mitchell, EVP at Macy's M, executed a substantial insider sell as per the latest SEC filing.

What Happened: Mitchell's decision to sell 12,000 shares of Macy's was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $191,076.

The latest update on Tuesday morning shows Macy's shares down by 0.89%, trading at $15.62.

Delving into Macy's's Background

Founded in 1858 and based in New York City, Macy's operates about 500 stores under the Macy's nameplate, nearly 60 stores under the Bloomingdale's (full-price and outlet) and Bloomie's nameplates, and 159 freestanding Bluemercury specialty beauty stores. Macy's also operates e-commerce sites and licenses Bloomingdale's stores in the United Arab Emirates and Kuwait. Women's apparel, accessories, shoes, cosmetics, and fragrances composed 62% of Macy's 2023 sales.

Financial Insights: Macy's

Revenue Growth: Macy's displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 1.92%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 42.35%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Macy's's EPS is below the industry average. The company faced challenges with a current EPS of 0.54. This suggests a potential decline in earnings.

Debt Management: Macy's's debt-to-equity ratio stands notably higher than the industry average, reaching 1.4. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 24.25 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.19, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Macy's's EV/EBITDA ratio, lower than industry averages at 7.78, indicates attractively priced shares.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Insider Transactions Are Important

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Macy's's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.