Macy's: 16 Different Insiders Have Sold Shares During The Last 30 Days

Mar.26.14 | About: Macy's Inc. (M)

Summary

16 insiders sold Macy's stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

All 16 of these insiders decreased their holdings by more than 10%.

Macy's (NYSE:M) is an omnichannel retail that sells a range of merchandise, including men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.

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Insider selling during the last 30 days

Here is a table of Macy's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Joel Belsky EVP March 19-25 11,875 No 3,599 shares + 7,500 options 51.7%
Martine Reardon CMO Feb 28-Mar 20 12,495 No 5,505 shares 69.4%
Jeffrey Kantor Chairman of Macys.com March 3-13 46,975 No 27,998 shares 62.7%
Graig Weatherup Director March 12 20,000 No 6,000 shares 76.9%
Karen Hoguet CFO March 3-11 80,564 No 191,284 shares 29.6%
Dennis Broderick EVP March 3-7 30,037 No 21,397 shares 58.4%
Terry Lundgren CEO March 3-4 595,138 No 415,688 shares 58.9%
Peter Sachse CSO March 3 53,064 No 117,359 shares 31.1%
Robert Harrison COO March 3 16,297 No 23,811 shares 40.6%
Amy Hanson EVP March 3 69,845 No 26,218 shares 72.7%
Julie Weiser CMPO March 3 53,064 No 67,759 shares 43.9%
Jeffrey Gennette CMO March 3 53,064 No 25,671 shares 67.4%
David Clark EVP Feb 27-Mar 3 85,990 No 8,791 shares 90.7%
Tim Adams CPBO Feb 28-Mar 3 100,952 No 43,393 shares + 21,019 options 61.0%
Marna Whittington Director March 3 20,000 No 34,834 shares 36.5%
Sara Levinson Director Feb 28 15,500 No 0 shares 100%
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There have been 1,264,860 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Macy's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
March 2014 1,039,689 0
February 2014

225,171

0
January 2014 0 0
December 2013 28,014 0
November 2013 468,212 0
October 2013 0 0
September 2013 0 0
August 2013 0 0
July 2013 351,446 0
June 2013 47,200 0
May 2013 140,250 0
April 2013 189,666 0
March 2013 840,997 7,125
February 2013 0 0
January 2013 0 0
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There have been 3,330,645 shares sold, and there have been 7,125 shares purchased by insiders since January 2013. The month of March 2014 has seen the most insider selling.

Financials

Macy's reported the fiscal 2013 full-year, which ended February 1, financial results on February 25 with the following highlights:

Revenue $27.9 billion
Net income $1.5 billion
Cash $2.3 billion
Debt $7.2 billion
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The 16 insiders sold their shares after these results.

Macy's had a negative quarterly revenue growth year-over-year in the fourth quarter.

Outlook

Macy's fiscal 2014 guidance is as follows:

Comparable sales growth 2.5%-3%
EPS $4.40-$4.50
Capital expenditures ~$1.05 billion
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Competition

Macy's competitors include Dillard's (NYSE:DDS), The Gap, Inc. (NYSE:GPS), and Nordstrom (NYSE:JWN). Here is a table comparing these companies.

Company M DDS GPS JWN
Market Cap: 21.17B 3.89B 17.92B 11.85B
Qtrly Rev Growth (yoy): -0.02 -0.04 -0.03 0.00
Revenue: 27.93B 6.69B 16.15B 12.54B
Gross Margin: 0.40 0.37 0.39 0.37
EBITDA: 3.78B 809.20M 2.62B 1.78B
Operating Margin: 0.10 0.08 0.13 0.11
Net Income: 1.49B 323.70M 1.28B 734.00M
EPS: 3.86 7.10 2.74 3.71
P/E: 15.03 12.47 14.66 16.84
PEG (5 yr expected): 1.10 0.72 1.07 1.43
P/S: 0.76 0.58 1.13 0.93
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Macy's has the second-highest P/E ratio among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
DDS 0 5,000
GPS 0 430,862
JWN 0 88,632
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Gap and Nordstrom have also seen intensive insider selling during the last 30 days.

Conclusion

There have been 16 different insiders selling Macy's, and there have not been any insiders buying Macy's during the last 30 days. All 16 of these insiders decreased their holdings by more than 10%. Macy's has an insider ownership of 0.30%.

Before going short Macy's, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are negative revenue growth, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.