Macy’s (NYSE:M) shares are in focus today after Arkhouse Management made nine nominations to the omni-channel retailer’s board at its upcoming 2024 annual meeting. Last month, Macy’s rejected a $5.8 billion acquisition offer from Arkhouse and Brigade Capital Management.
In December, an investor group led by Arkhouse and Brigade offered to acquire Macy’s at $21 per share. However, Macy’s rejected the M&A proposal, deeming it lacked value and was not actionable. Subsequently, Macy’s engaged with the suitors, seeking additional information that could possibly drive the discussions forward.
However, Arkhouse is now gearing up for a proxy contest with Macy’s. While a date for the latter’s annual meeting is yet to be finalized, a recommendation from its Board regarding the election of directors is expected ahead of this meeting. Macy’s has a 14-member board.
Is Macy’s a Good Stock to Buy?
Shares of the department store operator have jumped by nearly 35% over the past six months. Overall, the Street has a Moderate Buy consensus rating on Macy’s, and the average M price target of $18.38 implies a potential downside of 5.5% in the stock.
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