J.C. Penney Co. (NYSE:JCP) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Monday.
According to Zacks, “J. C. Penney has taken up several strategic initiatives to drive traffic. The company, in order to enhance customer shopping experience, has been focusing on remodeling, renovating and refurbishing its stores with special focus on enhancing high-margin center core department. The company’s strong in-store and online businesses, and solid performance across most merchandising divisions, with Sephora being one of the top performers, helped delivered upbeat performance in second-quarter fiscal 2016. These factors, along with the company’s constant efforts to drive omnichannel operations, make it confident of boosting sales and EBITDA in the remainder of fiscal 2016. On the flip side, the company’s high-debt level and competition from other department stores remain concerns. Nonetheless, management is concentrating on lowering the debt level and expects to reduce its net debt to EBITDA ratio to less than three times by fiscal 2017.”
A number of other equities analysts have also recently weighed in on the stock. B. Riley reaffirmed a “buy” rating and set a $16.00 price target on shares of J.C. Penney in a research report on Monday, August 15th. Jefferies Group reaffirmed a “hold” rating and set a $10.00 price target on shares of J.C. Penney in a research report on Thursday, August 18th. Morgan Stanley increased their price target on shares of J.C. Penney from $7.50 to $8.50 and gave the stock an “underweight” rating in a research report on Thursday, August 18th. Robert W. Baird reaffirmed an “outperform” rating and set a $13.00 price target on shares of J.C. Penney in a research report on Sunday, August 21st. Finally, Vetr cut shares of J.C. Penney from a “strong-buy” rating to a “buy” rating and set a $10.02 price target on the stock. in a research report on Monday, August 8th. Two investment analysts have rated the stock with a sell rating, thirteen have given a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $11.44.
Shares of J.C. Penney (NYSE:JCP) opened at 8.48 on Monday. The stock’s market cap is $2.61 billion. The firm has a 50-day moving average price of $9.45 and a 200-day moving average price of $9.13. J.C. Penney has a one year low of $6.00 and a one year high of $11.99.
J.C. Penney (NYSE:JCP) last posted its quarterly earnings data on Friday, August 12th. The department store operator reported ($0.05) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.10. The company earned $2.92 billion during the quarter, compared to analysts’ expectations of $2.93 billion. J.C. Penney had a negative net margin of 3.11% and a negative return on equity of 10.18%. The firm’s revenue for the quarter was up 1.5% on a year-over-year basis. During the same period in the prior year, the company posted ($0.41) EPS. Analysts anticipate that J.C. Penney will post $0.16 earnings per share for the current fiscal year.
In other news, Chairman Marvin R. Ellison acquired 50,000 shares of the stock in a transaction that occurred on Thursday, August 25th. The shares were acquired at an average cost of $9.92 per share, for a total transaction of $496,000.00. Following the purchase, the chairman now owns 2,557,317 shares of the company’s stock, valued at approximately $25,368,584.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 1.28% of the stock is owned by corporate insiders.
A number of large investors have recently made changes to their positions in JCP. Invictus RG purchased a new stake in shares of J.C. Penney during the first quarter worth about $103,000. Parametrica Management Ltd purchased a new stake in shares of J.C. Penney during the second quarter worth about $102,000. Advisors Asset Management Inc. boosted its stake in shares of J.C. Penney by 40.8% in the second quarter. Advisors Asset Management Inc. now owns 11,546 shares of the department store operator’s stock worth $103,000 after buying an additional 3,346 shares in the last quarter. Private Advisor Group LLC purchased a new stake in shares of J.C. Penney during the second quarter worth about $115,000. Finally, Gofen & Glossberg LLC IL purchased a new stake in shares of J.C. Penney during the third quarter worth about $129,000. Institutional investors and hedge funds own 88.53% of the company’s stock.
J.C. Penney Company Profile
J. C. Penney Company, Inc is a holding company. The Company’s operating subsidiary is J. C. Penney Corporation, Inc (JCP). The Company’s business consists of selling merchandise and services to consumers through its department stores and its Website at jcpenney.com, which utilizes optimized applications for desktop, mobile and tablet devices.
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