Macy's Inc (NYSE: M)
Macy's is off to a relatively interesting day in the market today. At the opening bell, the stock was trading slightly in the red before spiking upward and falling back to the red, where it spent the first hour or so of the day. From there, the stock made it to the green, and then minutes ago it spiked back down to the breakeven point. Below, we'll talk about what we're seeing from M, why, and what we'll be watching for ahead.
What We're Seeing From M
As mentioned above, Macy's isn't having the best of days in the market today. When the trading session started for the day, the stock was in the red before quickly spiking to the green. From there, it spiked back down to the red, where it has spent most of the morning. While it did hit the green recently, M quickly fell back to the breakeven point, where it sits as we speak (10:43).
Why The Stock Is Erratic
As is almost always the case, our partners at Trade Ideas were the first to inform us of the movement on M. As soon as they did, the CNA Finance team went to work to see what was causing the movement. It didn't take long to dig up the story. It seems like a hedge fund has turned its focus away from the company and investors have mixed feelings.
Minutes ago, Hudson Bay Hedge Fund announced that it is turning its focus away from Macy's and considering the purchase of Neiman Marcus. The hedge fund was expected to acquire the company some time down the road, but has decided that Neiman Marcus represents a better opportunity. As a result, M stock is working to find a direction as investors aren't quite sure how they feel about the news.
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on M stock. In particular, we're interested in seeing if the company is considering reaching out to other potential suitors for the possibility of an acquisition. We'll continue to follow the story closely and bring the news to you as it breaks!
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[Image Courtesy of Wikimedia]