On July 10, 2023, Jeffrey Gennette, Chairman & CEO of Macy's Inc (M, Financial), sold 75,430 shares of the company. This move is part of a series of insider transactions that have taken place over the past year, providing a glimpse into the company's financial health and future prospects.
Jeffrey Gennette has been with Macy's Inc for over 35 years, serving in various roles before becoming CEO in 2017 and Chairman in 2018. His deep understanding of the company's operations and market position makes his stock transactions particularly noteworthy for investors.
Macy's Inc is a premier omnichannel retailer with iconic brands that serve customers through outstanding stores, dynamic online sites and mobile apps. The company operates more than 600 department stores under the nameplates Macy's and Bloomingdale's, and approximately 160 specialty stores that include Bloomingdale's The Outlet, Bluemercury, and Macy's Backstage.
Over the past year, Jeffrey Gennette has sold a total of 75,430 shares and purchased none. This trend is mirrored in the company's overall insider transactions, with 6 insider sells and 0 insider buys over the same period.
The relationship between insider transactions and stock price can provide valuable insights. In this case, the consistent selling by insiders, including Gennette, could be interpreted as a lack of confidence in the company's future performance. However, it's also important to consider other factors, such as the company's current valuation and market conditions.
As of July 10, 2023, Macy's Inc shares were trading at $15.96, giving the company a market cap of $4.491 billion. The price-earnings ratio stands at 4.37, significantly lower than the industry median of 16.15 and the company’s historical median price-earnings ratio. This suggests that the stock may be undervalued.
According to the GuruFocus Value, which is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Macy's Inc is modestly undervalued. The stock's price-to-GF-Value ratio is 0.74, with a GF Value of $21.58.
In conclusion, while the insider sell-off by Jeffrey Gennette and others may raise some concerns, the company's current valuation suggests that Macy's Inc may still present a good investment opportunity. As always, potential investors should conduct their own thorough research before making any investment decisions.
