The stock rose after activist investor Jeffrey Smith of Starboard Value said the shares could rise to $125. He made those comments at the Delivering Alpha conference. The stock closed regular trading at $72.01, up 7.9%.
Smith emphasized the value of the retailer's real-estate portfolio, which he said is worth more than $20 billion. He said Macy's should spin off the properties into a real-estate investment trust, and said the company's flagship store in New York's Herald Square flaunts a $4 billion valuation, not to mention about 400 locations in malls, which Smith said are worth $13 billion.
Shares of Macy's are up 9.5% so far this year, compared with a 2.4% gain for the S&P 500. The company has a market capitalization of about $23 billion, and its stock trades at 16 times trailing earnings.