JC Penney Shares Are Popping on Surprisingly Strong Sales

Posted November 12, 2017

The stock now has a consensus rating of "Hold" and a consensus price target of $5.06.

Taking a broader look brokerage firms' analysts on the street with an expectant view have J.C. Penney Company Inc (NYSE:JCP) high price target of $15 and with a conservative view have low price target of $4. Holding in a research report on Thursday, September 14th. Citigroup Inc. increased their price objective on shares of J.C. Penney Company, Inc.

Ellison said the company had zeroed in on promotional strategies expected to improve both traffic and margins, having tested them out during the third quarter. Zacks Investment Research cut shares of J.C. Penney Company, Inc. Finally, LS Investment Advisors LLC raised its position in shares of J.C. Penney by 68.0% in the second quarter. Holding and gave the stock a "hold" rating in a report on Friday, August 11th. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the stock. Holding presently has an average rating of Hold and a consensus target price of $5.06.

In other J.C. Penney Company, Inc. Holding (NYSE:JCP) traded up $0.42 during mid-day trading on Monday, hitting $3.17.

The Relative Volume of the company is 1.3 and Average Volume (3 months) is 18.92 million. Holding will post 0.06 EPS for the current year. Holding by 10.6% in the second quarter. The stock has a market capitalization of $975.73, a price-to-earnings ratio of 6.28 and a beta of 0.53. Holding (NYSE:JCP) last issued its earnings results on Friday, November 10th.

J.C. Penney's net loss widened to $128 million, or 41 cents per share, in the quarter ended October 28, from $67 million, or 22 cents per share, a year earlier, partly because of the heavy discounting. The firm had revenue of $2.81 billion during the quarter, compared to analyst estimates of $2.77 billion.

Looking forward, the company expects comparable store sales to be between -1.0% and 0.0%; cost of goods sold is expected to be up 100 to 120 basis points compared to 2016; selling, general and administrative expenses are projected to decrease 1.0% to 2.0% and free cash flow is forecasted to be between $200 million and $300 million.

Net sales fell about 2 percent to $2.81 billion but beat the average analyst estimate of $2.77 billion. Over the last ninety days, insiders acquired 310,135 shares of company stock valued at $1,111,391.

In other news, Director Paul J. Brown acquired 25,000 shares of the business's stock in a transaction on Monday, August 21st. Insiders own 1.02% of the company's stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Javier G. Teruel bought 135,135 shares of the company's stock in a transaction that occurred on Tuesday, August 22nd. LS Investment Advisors LLC now owns 19,098 shares of the department store operator's stock valued at $170,000 after buying an additional 7,731 shares in the last quarter.