Macy’s shares surged approximately 20% following the
announcement of a $5.8 billion takeover bid. This suggests Macy’s might become
a private company, with its shares being acquired at a 32% premium to the $16
price. However, some analysts advise against hasty decisions and recommend
adopting a wait-and-see position. Let’s delve into the developments surrounding
this major chain of department stores.
Star takes center stage on the Macy’s logo, and perhaps
that’s the reason why its stock shone like December stars, experiencing a 20%
surge after reports of an investor consortium intending to acquire Macy’s
business, including a buyout of shares at a $21 price per share.
In fact, the share price grew to $21 but later adjusted to
$19. The reasons behind this adjustment will be discussed shortly.
Macy’s Stock Chart by TradingView
Notably, a buyout price of $21 falls short of Macy’s
stock’s all-time high. Considering this year’s results, it becomes evident that
the asset is in red. Anyway, for consistently growing stocks, one might want to
explore
the Apple stock chart. There are few things in the world as stable as that.
Macys Stock Chart by TradingView
As you already know, Macy’s stock grew due to the takeover
bid news. But why did a noticeable adjustment occur afterward? Some analyst
teams, with
Citi leading the way, are skeptical about the possible bid. They believe that
Macy’s business structural troubles, the current interest
rates situation, and the decline of Macy’s property value might pose
obstacles to financing the deal.
Plus, the prospects of department store businesses are
ambiguous. We are living in the era of online shopping, rapid deliveries, and
one-click orders. These factors led Citi to downgrade the analyst rating of
Macy’s stocks to Sell.
However, it’s possible that some specialists underestimate
the probability of the bid as well as the adaptability of department stores.
Macy’s and other companies in this sector do not stand still – they are
enhancing their online capabilities.
Predicting Macy’s future is challenging. If you’re seeking
trading opportunities here, closely monitoring the news and conducting your own
research is crucial.