Is Macy's a Buy After Investment Advisor Dupree Financial Boosted Its Position in the Stock?
Key Points
Dupree Financial added 286,027 shares of Macy's with an estimated value of approximately $4.05 million.
Macy's represents 1.54% of 13F reportable AUM for the period.
Post-trade, the fund's Macy's stake totaled 810,473 shares valued at $14.53 million as of September 30, 2025.
The position is now 5.52% of the fund's AUM, making it Dupree Financial's 5th-largest holding.
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What happened
According to a filing with the U.S. Securities and Exchange Commission dated October 28, 2025, investment advisory firm Dupree Financial Group, LLC increased its position in Macy's (NYSE:M) by acquiring 286,027 additional shares. The estimated transaction value, based on the average unadjusted close for the quarter, was approximately $4.05 million.
The fund’s total holdings in Macy's rose to 810,473 shares as of Sept. 30, 2025, worth $14.53 million at quarter-end. Dupree Financial Group reported $263.15 million in total 13F AUM and 70 U.S. equity positions at quarter-end.
What else to know
This buy brings Macy's to 5.52% of Dupree’s 13F AUM, ranking as its 5th-largest holding after the filing.
Top holdings after the reporting period:
- AGNC: $17.59 million (6.7% of AUM) as of 2025-09-30
- ENB: $15.63 million (5.9% of AUM) as of 2025-09-30
- BTI: $15.42 million (5.9% of AUM) as of 2025-09-30
- VZ: $15.31 million (5.8% of AUM) as of 2025-09-30
- M: $14.53 million (5.5% of AUM) as of 2025-09-30
As of October 28, 2025, Macy's shares were priced at $19.70, up 27% over the year to October 28, 2025, outperforming the S&P 500 by 8.4 percentage points over the past year.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $22.7 billion |
| Net income (TTM) | $494.0 million |
| Dividend yield | 3.66% |
| Price (as of market close 10/28/25) | $19.70 |
Company Snapshot
Macy's, Inc. is a leading omni-channel retailer with significant scale, operating hundreds of department stores and digital platforms under well-known brands. The company offers a broad product assortment and operates integrated sales channels.
IMAGE SOURCE: GETTY IMAGES.
Macy's provides a broad assortment of apparel, accessories, cosmetics, home furnishings, and beauty products through department stores, websites, and mobile applications.
It operates an omni-channel retail model, generating revenue from both in-store and digital sales across multiple brands including Macy's, Bloomingdale's, and Bluemercury. The company targets a broad consumer base in the United States and select international markets.
Foolish take
Dupree Financial Group's decision to expand its stake in Macy's merits attention because it was a substantial buy, catapulting the stock into the investment firm's top five holdings. This action suggests Dupree Financial has strong conviction in the future performance of Macy's shares.
Does this mean Macy's is a buy? The company is in the midst of a turnaround. It's closing underperforming stores, and is touting its "A Bold New Chapter" strategy as the path forward.
Because of the store closures, Macy's revenue declined in its fiscal second quarter, ended Aug. 2, to $5.0 billion from $5.1 billion in the prior year. That said, the company delivered the best same-store sales growth in 12 quarters, which suggests its strategy is working.
Macy's also strengthened its balance sheet by reducing long-term debt by $340 million in fiscal Q2, noting it has no material debt maturities until 2030. Its Q2 cash was a robust $829 million. However, the company's total debt was $2.6 billion at the end of Q2.
On top of this debt, Macy's exited Q2 with an outflow of $13 million in free cash flow (FCF). Without positive FCF, the company will struggle to pay down debt let alone afford a dividend. Considering these factors, Macy's stock is not a buy at this time.
Glossary
13F: A quarterly SEC filing required from institutional investment managers disclosing their U.S. equity holdings.
AUM (Assets Under Management): The total market value of assets that an investment firm manages on behalf of clients.
Reportable AUM: The portion of a fund's assets that must be disclosed in regulatory filings, such as the 13F.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or shareholding a fund or investor has in a company.
Omni-channel: A retail strategy integrating in-store, online, and mobile sales channels for a seamless customer experience.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its stock price.
Quarter-end: The last day of a company’s fiscal quarter, used for reporting financial results.
Outperforming: Achieving better returns than a benchmark index or comparable investment.
Filing: An official document submitted to a regulatory authority, often containing financial or ownership information.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has positions in Verizon Communications. The Motley Fool has positions in and recommends Enbridge. The Motley Fool recommends British American Tobacco P.l.c. and Verizon Communications and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.
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