Macy's stock was struggling on the charts until today's post-earnings pop
Macy's Inc (NYSE:M) stock is pushing past broad-market weakness today, last seen up 6.6% to trade at $17.79. The retailer reported adjusted fourth-quarter earnings of $1.67 per share on $7.64 million in revenue, both of which topped analysts' expectations. The company did offer a "prudent" take on guidance, acknowledging tariffs and geopolitical pressures impacting discretionary spending.
Today's bounce has Macy's stock reclaiming its 200-day moving average, a trendline that was breached last week for the first time since September. The shares have taken a 27.1% haircut off their Dec. 12, three-year peak of $24.41, but are still 35% higher year over year. The turnaround is impressive, with the security nearly doubling off its April 8 low of $9.76.
A short squeeze could keep the wind at the equity's back. Short interest has fallen almost 8% in the last month, yet the 24.01 million shares sold short account for 9.1% of M's total available float.
Options traders are making moves this morning. In just the first hour of trading, 11,000 contracts have already exchanged hands, volume that's quadruple the average intraday amount. The March 18 call is the most popular, with standard expiration contracts expiring this Friday occupying the top contracts traded today.