메이시스 (M)

Shares of Macy's Inc (M) dropped by 8.28% from $20.77 to $19.05 in the trading on Tuesday, December 12, 2023. The reason why M down today is due to a downgrade from Citi, which lowered its rating from neutral to sell. The downgrade coincided with reports suggesting that an investor group is considering a buyout of Macy's at $21 per share.

• Market Reaction: Initially, Macy's stock surged by 19.4% in response to the buyout rumors but retreated following the Citi downgrade. The Wall Street Journal reported that Arkhouse Management and Brigade Capital Management submitted a $5.8 million bid for Macy's stock they don't already own. Macy's and Arkhouse Management declined to comment on the reports, while Brigade Capital Management has yet to respond.
• Citi's Doubts: Citi expressed skepticism about the likelihood of the buyout deal materializing. Analyst Paul Lejuez from Citi cited previous similar attempts, the challenging financial environment, and the ongoing challenges faced by Macy's. Citi also highlighted the complexity of monetizing Macy's extensive real estate assets, including the flagship Herald Square store in Manhattan.

Shares of Macy's dropped 12.66%, also leading a broader retail sector decline. The iconic department store retailer's second-quarter financials didn't inspire much confidence heading into the key back-to-school and holiday shopping seasons. The Macy's brand itself did particularly poorly, with comps falling 9.2% among company-owned stores.

https://www.fool.com/investing/2023/08/22/why-these-2-well-known-stocks-are-dragging-the-who/