Key Stats for Macy’s Stock
- Price change for Macy’s stoc: 3%
- $M Share Price as of May. 19: $19
- 52-Week High: $24
- $M Stock Price Target: $19
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What Happened?
Macy’s (M) stock jumped almost 3% on Friday after Berkshire Hathaway disclosed a $55 million investment in the department store chain. Berkshire acquired roughly 3 million shares, representing about 1.1% of the company.
- What makes this notable is its history. This is Berkshire’s first investment in the department store sector since 1966 — a 60-year gap.
- Warren Buffett’s firm is known for buying companies with durable competitive advantages at reasonable prices.
- The fact that Berkshire chose Macy stock now, after years of department store struggles, signals that someone inside one of the world’s most respected investment firms sees value here that the broader market may be missing.
The timing also lines up with Macy’s ongoing transformation. The company is executing its “Bold New Chapter” strategy, which involves closing roughly 150 underperforming stores by 2028 while investing in approximately 350 stronger locations. The plan is working.
Macy’s returned to positive comparable sales growth in 2025, beating expectations in all four quarters and delivering adjusted EPS of $2.32 — well above initial guidance of $2 to $2.20.
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What the Market Is Telling Us About Macy’s Stock
Berkshire’s entry into Macy’s stock is a vote of confidence in a turnaround that was already gaining traction before this news hit.
- Bloomingdale’s reported comparable sales growth of 7.4% for the full year 2025 and posted a record holiday quarter.
- The Macy’s nameplate returned to positive comps for the first time in years.
- Free cash flow reached $797 million, and the company ended the year with $1.2 billion in cash.
- The retailer also has no major debt maturities until 2030 and returned $448 million to shareholders in 2025 through dividends and buybacks.
With over $1.1 billion remaining on its buyback authorization, Macy’s stock investors have another potential tailwind.
The risks are real — tariffs are expected to weigh on gross margins by 20 to 30 basis points in 2026, and consumer spending remains uncertain.
Management guided full-year adjusted EPS of $1.90 to $2.10, below last year’s $2.32. But Berkshire rarely buys a stock for what it earned last year.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
