Christmas has come early for Macy’s Inc. (M). The Wall Street Journal reported that the retail giant received a $5.8 billion buyout from Arkhouse Management and Brigade Capital Management. Citing sources familiar with the matter, the media outlet is valuing Macy’s at $21 per share, thanks to this offer.
Macy’s’ stock price has spiked nearly 17%, from Friday’s closing price of $17.39, to around $20 on Monday morning. Certainly, that’s nowhere near its price of roughly $70 a share in 2015. However, that does mean the brick-and-mortar retailer is currently trading upward at a significant discount from its peak.
“The retailer expressed optimism after its most recent quarter beat Wall Street’s expectations,” CNBC reported. “By the numbers, that performance improvement was driven mostly by sales at brands that Macy’s owns.”
Stuff Your Stockings With Invesco Funds
For investors looking to fill their stockings (read: portfolios) with some stocking stuffers (ETFs with Macy’s stock), Invesco has some options.
The Invesco S&P MidCap 400 Revenue ETF (RWK ) invests in midcap stocks in the S&P MidCap 400 Revenue-Weighted Index. The Index uses a rules-based approach that reweights securities of the S&P MidCap 400 Index based on the revenue the companies earn, with a maximum 5% per company weighting.
Meanwhile, the Invesco S&P MidCap 400 Pure Value ETF (RFV ) tracks the S&P MidCap 400 Pure Value Index, which measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index.
According to Invesco, for RFV’s index, each security in the S&P MidCap 400 is assigned two “style scores”: one for value and one for growth. The index then ranks the stocks as deep value, blend, or deep growth. RFV’s index only includes the stocks deemed “deep value." The index then weights the stocks, with those demonstrating the strongest value characteristics given proportionally greater weight.
Macy’s made up 1.61% of RWK (the fund’s top holding) and 1.39% of RFV as of December 8.
For more news, information, and analysis, visit the Innovative ETFs Channel.
