J. C. Penney Company, Inc. (JCP): 1 Aspect That’s Somewhat Good

J. C. Penney Company, Inc. (JCP) will probably climb 7.69 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $2price as 12-month high target. This represents a whopping 53.85 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $1.5, which represents a return potential of 15.38 percent when compared to the closing price of the stock of $1.3 on Wednesday, January 16. The lowest price target for the stock is $0.5 — slightly more than -61.54 percent from JCP’s current share price.

The stock is currently hovering around the first support level of $1.27. Below this, the next support is placed in the zone of $1.23. Till the time, the JCP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 56.04 on daily chart, which may remain a cause for concern. If the price breaks below $1.23 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.35 mark may result into a pull-back move towards $1.39 level.

On 16th of January, J. C. Penney Company, Inc. (NYSE:JCP) shares ended lower after a volatile session. The shares dropped -0.02 points or -1.52 percent at $1.3 with a light trade volume of 8.875 million shares. After opening the session at $1.32, the shares went as high as $1.36 and as low as $1.28, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $398 million and now has 305.83 million shares outstanding. J. C. Penney Company, Inc. (JCP) stock has gained 8.33 percent of market value in 21 trading days.

JCP stock has a trailing 3-year beta of 1.01, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.47 a share in the trailing twelve months. The stock’s value has surged 25 percent year to date (YTD) against a decline of -66.32 percent in 12 month’s time. The company’s shares still trade -72.63 percent away from its 1-year high of $4.75 and 41.3 percent up from 52-week low of $0.92. The average consensus rating on the company is 3.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a hold.

Shares of J. C. Penney Company, Inc. (JCP) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry JCP operates in has an average P/E of 63.25. Its P/E ratio went as low as 2021.94X and as high as 2021.94 over the 5-year span. Further, it is sporting a 0.03 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.74. 34.5 percent is the gross profit margin for J. C. Penney Company, Inc. and operating margin sits at 0.8 percent. Along with this, the net profit margin is -0.6 percent.

Let’s take a look at some insider activity at J. C. Penney Company, Inc. (NYSE:JCP) and see the pattern. The earliest insider trade took place on 08/22/2017. Davis Jeffrey A. gathered a total of 50 thousand shares of company at average share price of $3.62. The total for the purchase was set at $181 thousand. After this transaction, the EVP, CFO account balance stood at 72.65 thousand shares. The stock lost -63.54 percent since that insider purchase. On 08/22/2017, Teruel Javier G, Director, purchased 135.14 thousand shares at a price per share of $3.64. This added 491.89 thousand shares to the insider’s fortune and the stock saw a -63.74 percent retreat in value since the news became public. This transaction left 518.97 thousand shares in the Director account.

On 08/21/2017, Director Brown Paul J performed a purchase transaction worth $90.5 thousand. This purchase at $3.62 each has added 25 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -63.54 percent decrease since the transaction was reported. The insider now is left with 68.12 thousand shares remaining in the account. Ellison Marvin R, who performs the Chairman and CEO job, bought 100 thousand shares for $348 thousand. The acquisition occurred on 08/18/2017 was priced at $3.48 per share. The share price plunged -62.07 percent since the reporting date. Ellison Marvin R now left with a stake of 2.85 million JCP stock worth $3.71 million after the insider buying.