NEW YORK (TheStreet) -- Shares of Macy's(M) - Get Report are climbing by 3.7% to $39.28 in early afternoon trading on Tuesday, as Greenlight Capital takes a stake in the company.

Greenlight announced that a private equity firm may partner with a real estate investment trust to buy the retailer, Bloomberg reports.

Macy's rejected the idea of becoming a REIT last year, but it could make more sense now since its stock price has decreased, Greenlight said in a letter to investors obtained by Bloomberg.

"While it's unlikely that management will reverse course on its own, it wouldn't surprise us if a private equity firm teamed up with a REIT to buy the company and unlock the value privately," said the hedge fund firm, which is led by David Einhorn.

Additionally, Macy's CEO Terry Lundgren announced today that the retailer is taking a more professional view of its real estate assets, reports.

"I'm all about trying to get value for our company, and if I can do that without disrupting our business, without leveraging up the company and staying investment grade, I mean, we're all over those ideas," Lundgren said on CNBC's "Squawk Box."

TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts Plus charitable trust wrote about Macy's in a post on late this morning: "I don't buy the Macy's real estate argument as a savior, because I can recall when Macy's filed for Chapter 11 not long after Goldman did a huge bond deal to take the company private. Iconic means nothing when it comes to the debt master."

Separately, TheStreet Ratings Team has a "hold" rating with a score of C on Macy's.  The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.

The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, the team also finds weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author

You can view the full analysis from the report here: M

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