JC Penney Holding On To Strong Gain In Afternoon Trading

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JCP stock is now up 18% in early morning trading.

JCP has been the topic of a number of other reports. Citigroup Inc. downgraded J.C. Penney Company, Inc. The brokerage presently has a "hold" rating on the department store operator's stock. Deutsche Bank AG reiterated a buy rating on shares of J.C. Penney in a report on Monday, October 31st. Three equities research analysts have rated the stock with a sell rating, twenty have given a hold rating, one has given a buy rating and one has given a strong buy rating to the company.

Analysts have given a mean recommendation of 2.00 on this stock (A rating of less than 2 means buy, "hold" within the 3 range, "sell" within the 4 range, and "strong sell" within the 5 range).

J.C. Penney (jcp) gave investors a rare good surprise on Friday when it reported better than expected third-quarter sales, sending shares up 14% in pre-market trading.

Last month, the company said that it expected a per-share loss of between 40 and 45 cents for the quarter.

On a more encouraging note, free cash flow was roughly flat on a year-over-year basis, as J.C. Penney's inventory reduction efforts offset the negative impact of posting lower earnings. The share price has yet to cross its 20 days moving average, floating at a distance of -21.23% and sits -30.68% lower versus its 50 days moving average. Holding Company (NYSE JCP) traded up $0.41 during midday trading on Friday, hitting $3.18. Still, thanks to the higher sales volume, J.C. Penney reported an adjusted loss of $0.33 per share.

J.C. Penney Company Inc (NYSE:JCP)'s trailing twelve month revenues are $12.49 Billion, whereas its price to sales ratio for the same period is 0.07.

The retailer has been trying to reduce its reliance on apparel, a declining category across retail, by shifting much of its business to large items like appliances-whose sales doubled in the quarter compared to a year earlier, CEO Marvin Ellison said on an investor call-and services like home installations. And after closing 138 stores, total sales fell 1.8 percent to $2.81 billion, which shows how unproductive some stores had become.

In last month's update, J.C. Penney projected that comparable store sales increased 0.6% to 0.8% during the third quarter. The stock was bought at an average cost of $3.62 per share, with a total value of $90,500.00. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Insiders purchased 310,135 shares of company stock valued at $1,111,391 over the last quarter.

The news stanched, at least for a moment, an extended selloff in company shares, which accelerated last month when the Plano, Texas-based chain warned that it would be forced to liquidate poor-selling merchandise.

On the other hand the company has Relative Strength Index (RSI 14) of 38.09 along with Average True Range (ATR 14) of 0.22, Consequently J.C. Penney Company Inc (NYSE:JCP)'s weekly and monthly volatility is 11.28%, 7.06% respectively. Rhumbline Advisers raised its position in J.C. Penney Company, Inc. Finally, Teachers Advisors Inc. raised its stake in J.C. Penney by 13.3% in the second quarter.