Macy's Inc
1. The $5.8 Billion Buyout Offer
An investor consortium, including Arkhouse Management and Brigade Capital Management, has proposed a $5.8 billion bid to acquire Macy's, amid increasing competition from digital retailers. The proposal at $21 per share is expected to help the company's market value.
Macy's has been facing intense competition from e-commerce platforms. It's possible the buyout bid is being understood by investors as the much-needed rescue plan for the retailer.
2. A Technical Signal
Macy's stock chart indicates a very interesting turn of events.
The 50-day SMA is on its way to cross over the 100-day SMA - indicating a Golden Cross - a bullish signal for traders in the market. Macy's stock has got a big bump from the buyout news, and investors could take the recent rally as market sentiment-driven. The fundamental story on Macy's remains muted.
The stock may be seen as moving up over the recent past but is down about 25% over the past year.
3. Macy's Analysts
In November, few analysts raised their price targets on Macy's stock.
JPMorgan's Matthew Boss maintained an Overweight rating on the stock, while the price target was from $16 to $19.
Dana Telsey of Telsey Advisory Group also maintained Market Perform rating while increasing price target on the stock from $14 to $15.
M Stock Price Action: Macy's stock was trading at $20.40 at the time of publication.
