2024-07-05 14:04:37 ET
Summary
- Macy's shares surged 12.6% on news of a higher buyout offer from investors at $24.80 per share, indicating commitment to acquiring the company.
- Despite recent revenue declines, Macy's turnaround plan shows signs of improvement, with plans to close underperforming stores and focus on growth in other brands.
- The buyout offer values Macy's at a discount relative to earnings and cash flows, presenting a risk to reward opportunity for investors depending on the success of the turnaround plan.
July 5th marked another interesting day for shareholders of Macy's ( M ). Shares of the struggling clothing retailer shot up 12.6% to roughly $20.19 per share as of the time I write this. This comes after a third bid to acquire the company by a group of investors that includes Arkhouse Management and Brigade Capital Management. Although the increase is nowhere near as large as the previous one, it does indicate how committed the investor group is to acquiring the enterprise....
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Macy's Remains On Sale After An Upsized Bid Pushes Shares Higher