Berkshire’s $55 Million Macy’s Stake Sparks 5% Premarket Rally
Macy’s shares jumped 5% premarket to near $19 after Berkshire Hathaway’s Q1 2026 13F filing revealed a new 3 million-share stake worth $55 million, about 1% of the company. The retailer generated $800 million in free cash flow for fiscal 2025 and holds $1.2 billion in cash.
1. Berkshire Hathaway Position
In its Q1 2026 13F filing, Berkshire Hathaway acquired roughly 3 million Macy’s shares, representing about 1% ownership valued at $55 million. The position marks Berkshire’s first stake in the department store, signaling confidence in the retailer’s value proposition.
2. Stock Reaction
Macy’s shares rose over 5% in premarket trading, climbing to near $19 on elevated volume. The jump reflects investor optimism following the high-profile institutional investment and renewed focus on Macy’s turnaround strategy.
3. Financial Health and Valuation
For fiscal 2025, Macy’s generated $1.4 billion in operating cash flow and $800 million in free cash flow, ending the year with $1.2 billion in cash and $2.4 billion in debt. The stock trades at a trailing P/E of 7.9x and yields over 4.1%, underscoring its deep-value appeal.