Macy’s Director Jeffrey Gennette Offloads $1.6 Million Worth of Stock, According to Investing.com

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Macy’s Director Jeffrey Gennette Offloads .6 Million Worth of Stock, According to Investing.com

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Macy’s, Inc. (NYSE:) CEO Jeffrey Gennette recently made significant changes to his holdings in the company’s stock, according to the latest SEC filings. On March 22, 2024, Gennette sold a total of 78,567 shares of Macy’s common stock at an average price of $20.4216, netting approximately $1,604,463 from the sale.

Transactions took place in several transactions with prices ranging from $20.32 to $20.63. The sale was allegedly made to cover withholding tax obligations upon the acquisition of restricted stock and did not constitute a discretionary transaction on the part of Gennette.

In addition to the sale, a filing revealed that on March 21, Macy’s withheld 7,312 shares of common stock worth $20.79 per share to satisfy Gennette’s tax obligations related to the vesting of dividends accrued on the share units with restricted performance conditions. This withholding amounted to $152,016 and did not represent a discretionary transaction on the part of Gennette.

The SEC filing also stated that Gennette received 179,797 shares of Macy’s common stock on the same day, including 14,323 shares of dividends accrued over a three-year performance period. However, this acquisition had no immediate monetary value, as the shares were granted following a performance period spanning fiscal years 2021 to 2023.

As a result of these transactions, Gennette’s ownership of Macy’s stock was adjusted to 994,301 shares. Recent activity in Macy’s stock by a high-ranking company executive may be of interest to investors and market observers because insider transactions can sometimes provide insight into the financial health of a company and its potential future performance.

InvestingPro Insights

As investors digest the latest insider transactions at Macy’s, Inc. (NYSE:M), it is worth considering some key indicators and insights from InvestingPro that could provide broader context to the financial health and stock market performance of the company.

With a market capitalization of $5.41 billion, Macy’s is recognized as a leading player in the retail industry. Despite recent insider selling, Macy’s has demonstrated a strong track record of maintaining dividend payments, with a history of 22 consecutive years of dividends. This commitment to returning value to shareholders is often viewed favorably by investors seeking stable income streams. The current dividend yield stands at a notable 3.43%, reflecting the company’s ability to maintain its dividend payouts.

Additionally, the stock has seen a strong price rise over the past six months, posting an impressive total return of 85.36% during this period. This rise in stock price could suggest growing investor confidence in the company’s prospects or in favorable market conditions for the retail sector.

However, it is important to note that Macy’s trades at a high earnings multiple, with a P/E ratio of 51.49. This could indicate that the stock’s price is optimistic about its earnings. Investors should be aware of this valuation aspect when looking at Macy’s stock, especially in light of the eight analysts who have revised their earnings downward for the upcoming period. This could signal potential headwinds or a recalibration of expectations.

For those who want deeper analysis and additional InvestingPro advice, including whether Macy’s net income is expected to grow this year or whether analysts predict the company will be profitable, you can find more comprehensive information at InvestingPro. To improve your investment search, use the promo code PRONEWS24 to benefit from an additional 10% reduction on an annual or biannual Pro and Pro+ subscription. There are currently 8 others InvestPro Advice available on Macy’s, allowing you to dig deeper into the company’s financial data and stock performance.

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