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      Macy’s, Inc. (M) stock gained in the Current Market. Here is why? - Stocks Telegraph

      By Shariq Khan

      Published on

      January 24, 2022

      3:02 PM UTC

      Macy’s, Inc. (M) stock gained in the Current Market. Here is why? - Stocks Telegraph

      Macy’s, Inc. (M) gained stock in the current market after Kohl’s department store received a bid offer. The stock of Macy’s, Inc. (M) values at $25, gaining more than 9% from the previously closed value. At the end of the last trading session, the stock closed at $22.94. The stock volume traded in the previous trading session was around 15.13 million shares.

      Reasons for the Macy’s stock gain

      The Wall Street Journal reported that activist hedge fund Starboard Value LP had made a $9 billion takeover approach for Kohl’s Corp. The stock of Macy’s, Inc. (M) also gained value following the news. Macy’s has been urged to split its e-commerce and retail operations. Changing consumer buying habits have put stress on department retailers long before COVID-19. The company will announce fourth-quarter earnings on February 22. 

      According to business insider, a group led by activist hedge fund Starboard Value LP has made a $9 billion bid for Kohl’s Corp. On Friday, Acacia Research Corp. (ACTG) led the company offered $64 per share in cash. Kohl’s price was $46.84 in the previous closing session. The bid is 37% higher. They said it assured the corporation it had made sure from bankers that it could fund the offer.

      There is no certainty that the consortium will raise all necessary funds and make a definite offer or that Kohl’s will accept it. 

      The effect on the stock

      As soon as the news of Kohl’s receiving a bid-offer spread in the market, the stock of Macy’s and other stores rose in the market as well. Nine billion dollars is a massive valuation, and investors are now interested in different retail stores shares, hoping they would acquire them by massive institutions in the future.

      Conclusion

      The stock of Macy’s, Inc. (M) gained significantly. The financial analysts at market beat also rates hold on the stock hoping it would value between $29 to $35 soon.

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