Sales Rebound Drives JC Penney Stock up 14%

Tammy Harvey
November 11, 2017

J. C. Penney Company, a holding company. Holding's Q3 2018 earnings at ($0.46) EPS, Q4 2018 earnings at $0.54 EPS, FY2018 earnings at $0.05 EPS and FY2019 earnings at $0.30 EPS. They issued a neutral rating on the stock. Holding and gave the company a hold rating in a report on Monday, October 30th. According to these analysts, the Low Revenue Estimate for J. C. Penney Company, 2.61 Billion and the High Revenue Estimate is 2.87 Billion.

Additionally on 10/30/17 BMO Capital "Maintained" J.C. Penney Company Inc (NYSE:JCP) to Market Perform setting price target at $2.8 and on 10/30/17 B. Riley "Maintained" the stock to Neutral at $3.8. Holding from a sell rating to a hold rating in a report on Tuesday, October 17th. The stock is trading for about -76.63% less than its 52-week high. Holding from a "hold" rating to a "buy" rating in a research note on Tuesday, August 1st. Analysts mean recommendation for the stock is 3.10.

Let's also take a brief look at the stock price in relation to some highs/lows and moving averages.

Credit Suisse Group AG initiated coverage on shares of J.C. Penney Co. The relative volume (ratio between current volume and 3-month average) is presently sitting at 1.00. The company has a debt-to-equity ratio of 3.51, a current ratio of 1.45 and a quick ratio of 0.24. J.C. Penney has a one year low of $6.00 and a one year high of $11.99. (NYSE:JCP) advice adding it to buy candidate list.

J.C. Penney reported some good news from its third quarter: a 1.7 percent increase in same-store sales that beat forecasts and a smaller loss than expected.

The company lost $0.33 per share, considerably less than the $0.40 to 0.45 it had anticipated as net sales dropped 2% to $2.81bn, which was also ahead of analysts' forecasts for $2.77bn. The difference between the expected and actual EPS was $-0.04/share, which represents an Earnings surprise of -80%.

Full-year comp sales are now seen at flat to negative 1%.

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On the other hand, J.C. Penney's gross margin pressure was just as bad as expected. Holding news, Chairman Marvin R. Ellison purchased 100,000 shares of the stock in a transaction on Friday, August 18th. At the time of writing, the stock had reached $3.14. Following the completion of the purchase, the chief financial officer now owns 72,645 shares in the company, valued at approximately $262,974.90. The transaction was disclosed in a document filed with the SEC, which is accessible through this link.

The stock has a market cap of $847.61M and the number of outstanding shares has been calculated 69.59M. Clearly, investors are no longer confident in the company's trajectory and don't trust management. The disclosure for this purchase can be found here. Chartwell Investment Partners LLC now owns 7,433,289 shares of the department store operator's stock worth $66,008,000 after buying an additional 2,429,635 shares in the last quarter. Most company stocks have very little volatility.

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