Seeking Alpha
Long/short equity, insider ownership
Profile| Send Message|
( followers)  

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.

(click to enlarge)

Insider selling during the last 30 days

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

NameTitleTrade DateShares SoldRule 10b5-1Current OwnershipDecrease In Ownership
Joel BelskyEVPMarch 19-2511,875No3,599 shares + 7,500 options51.7%
Martine ReardonCMOFeb 28-Mar 2012,495No5,505 shares69.4%
Jeffrey KantorChairman of Macys.comMarch 3-1346,975No27,998 shares62.7%
Graig WeatherupDirectorMarch 1220,000No6,000 shares76.9%
Karen HoguetCFOMarch 3-1180,564No191,284 shares29.6%
Dennis BroderickEVPMarch 3-730,037No21,397 shares58.4%
Terry LundgrenCEOMarch 3-4595,138No415,688 shares58.9%
Peter SachseCSOMarch 353,064No117,359 shares31.1%
Robert HarrisonCOOMarch 316,297No23,811 shares40.6%
Amy HansonEVPMarch 369,845No26,218 shares72.7%
Julie WeiserCMPOMarch 353,064No67,759 shares43.9%
Jeffrey GennetteCMOMarch 353,064No25,671 shares67.4%
David ClarkEVPFeb 27-Mar 385,990No8,791 shares90.7%
Tim AdamsCPBOFeb 28-Mar 3100,952No43,393 shares + 21,019 options61.0%
Marna WhittingtonDirectorMarch 320,000No34,834 shares36.5%
Sara LevinsonDirectorFeb 2815,500No0 shares100%

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.

MonthInsider selling / sharesInsider buying / shares
March 20141,039,6890
February 2014

225,171

0
January 201400
December 201328,0140
November 2013468,2120
October 201300
September 201300
August 201300
July 2013351,4460
June 201347,2000
May 2013140,2500
April 2013189,6660
March 2013840,9977,125
February 201300
January 201300

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

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 growth2.5%-3%
EPS$4.40-$4.50
Capital expenditures~$1.05 billion

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.

CompanyMDDSGPSJWN
Market Cap:21.17B3.89B17.92B11.85B
Qtrly Rev Growth (yoy):-0.02-0.04-0.030.00
Revenue:27.93B6.69B16.15B12.54B
Gross Margin:0.400.370.390.37
EBITDA:3.78B809.20M2.62B1.78B
Operating Margin:0.100.080.130.11
Net Income:1.49B323.70M1.28B734.00M
EPS:3.867.102.743.71
P/E:15.0312.4714.6616.84
PEG (5 yr expected):1.100.721.071.43
P/S:0.760.581.130.93

Macy's has the second-highest P/E ratio among these four companies.

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

CompanyInsider buying / sharesInsider selling / shares
DDS05,000
GPS0430,862
JWN088,632

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.

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