Macy’s (M) Stock Gains Traction After Berkshire Hathaway Takes New Position

Key Takeaways

• The department store chain is scheduled to release its Q1 2027 financial results on Wednesday, May 27, with Wall Street forecasting $0.02 earnings per share and revenue of $4.61 billion.
• During the previous quarter, the retailer exceeded projections, delivering $1.67 EPS on $7.92B in sales, despite a 1.7% decline in year-over-year revenue.
• Warren Buffett’s investment firm revealed a fresh investment in the department store operator, igniting renewed confidence among market participants.
• Wall Street maintains a cautious “Reduce” consensus with an average price target of $18.90, while shares currently hover near $19.10.
• Large investment firms including Marshall Wace, Invesco, and Bridgewater Associates have recently expanded their holdings in the company.

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The iconic American department store chain is preparing to unveil its Q1 2027 financial performance amid heightened market attention. The disclosure that Warren Buffett’s Berkshire Hathaway has established a fresh stake in the retailer has generated considerable buzz. Market participants will be closely monitoring the announcement scheduled for Wednesday morning, May 27, before trading begins.

Macy’s, Inc., M

Wall Street forecasts show expectations for the company to deliver earnings of $0.02 per share. Quarterly sales are anticipated to reach approximately $4.61 billion.

These projections represent a significant decline from the preceding quarter. During the holiday period, Macy’s surpassed analyst predictions with earnings of $1.67 per share compared to the consensus estimate of $1.55, while sales totaled $7.92 billion against forecasts of $7.48 billion.

However, even that better-than-expected performance reflected ongoing challenges. Sales decreased 1.7% compared to the corresponding period in the previous year. The retailer had delivered $1.80 in earnings per share during that earlier quarter, representing a year-over-year earnings contraction.

Looking at the complete fiscal year outlook, Wall Street currently projects earnings of $2.00 per share.

Warren Buffett’s Firm Takes a Position

The most significant development surrounding the department store recently has been the revelation that Berkshire Hathaway has established a new holding. The regulatory filing immediately captured market attention, with industry observers speculating that the company’s substantial property portfolio and its upscale Bloomingdale’s division may have attracted the legendary investor.

Shares have outperformed broader market indices since the Berkshire disclosure became public. This development has elevated market sentiment, despite ongoing reservations among sell-side analysts.

The stock began trading at $19.10, exceeding its 50-day moving average of $18.63. Over the past year, shares have fluctuated between $10.54 and $24.41.

Wall Street Maintains Reserved Outlook

The analyst community remains divided on the stock’s prospects. The retailer currently holds a consensus “Reduce” recommendation with an average price objective of $18.90.

JPMorgan Chase reduced its price target from $24 to $21 while maintaining a neutral stance. TD Cowen lowered its projection from $21 to $20, also retaining a hold rating. UBS maintains a sell recommendation with a $9 price target.

Zacks Investment Research upgraded its rating from “strong sell” to “hold” in April. Among the 14 analysts tracking the stock, one recommends buying, eleven suggest holding, and two advise selling.

The company has also announced a quarterly dividend payment of $0.1915 per share, scheduled for distribution on July 1. This translates to an annualized dividend of $0.77 and a yield of approximately 4%.

Major Investors Increase Positions

Large institutional investors have been accumulating shares of the department store operator. Marshall Wace established a new position valued at roughly $69.6 million. Bridgewater Associates dramatically increased its holdings by 1,742%. Invesco expanded its stake by 160.5%.

Collectively, institutional investors and hedge funds now control 87.36% of outstanding shares.

Regarding insider activity, CEO Antony Spring divested 50,044 shares in early April at $17.92 each, a transaction related to tax obligations on equity compensation. EVP Tracy Preston similarly sold 5,271 shares for tax withholding purposes. Company insiders collectively own approximately 1.05% of the stock.

The quarterly earnings conference call is planned for June 3, 2026 at 8:00 AM Eastern Time.

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