Why Are Shares of J C Penney Company Inc (JCP) Falling?


Share of J C Penney Company Inc (NYSE:JCP) continue their slide today, bewildering many of their investors. The stock, which is down over 32% in the last two months alone has continued to fall without any major news. While the company certainly isn’t flourishing, the stock has taken quite a beating, particularly over the last eight trading days.

Today’s drop could have something to do with the Fed’s decision to raise interest rates by a quarter a point, equating to the possibility of J C Penney Company Inc’s (NYSE:JCP) debt costs rising slightly over the coming quarters. With that said, it has been apparent for weeks, if not months, that we were headed for a interest rate hike, so this information should have already been priced into the stock. It will be interesting to see if we’ve hit a bottom or if shares continue to fall throughout the remainder of this week.

The stock has fallen 3.99% or $0.28 following this negative news, hitting $6.74 per share. Approximately 4.40 million shares traded hands. JCP shares have declined 12.69% since May 14, 2015 and are currently downtrending. It has underperformed the S&P500 by 9.01%.

From a total of 10 analysts covering J.C. Penney Company (NYSE:JCP) stock, 4 rate it a “Buy”, 3 a “Sell”, and 3 a “Hold”. This means that 40% of the ratings are positive. The highest target price is $12.50 while the lowest target price is $5. The mean of all analyst targets is $8.81 which is 30.71% above today’s ($6.74) stock price. J.C. Penney Company was the topic of 14 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Nomura upgraded shares on December 10 to a “Neutral” rating. Morgan Stanley maintained shares with a”Underweight” rating and a $6 target share price in their report from an August 18. Sterne Agee CRT upgraded JCP stock in a recent report from September 28 to a “Buy” rating. B. Riley & Co initiated the rating on August 17. B. Riley & Co has a “Buy” rating and a $12.50 price target on shares. Finally, Deutsche Bank upgraded the stock to a “Buy” rating in a report they issued on an August 31.

The institutional sentiment decreased to 0.84 in Q2 2015. It’s down 0.24, from 1.08 in 2015Q2. The ratio fall, as 57 funds sold all their J C Penney Company Inc shares they owned while 101 reduced their positions. 41 funds bought stakes while 91 increased their total positions. Institutions now own 222.72 million shares which is 10.86% less than the previous share count of 249.87 million in 2015Q2.

Raiff Partners Inc holds 10.87% of its total portfolio in J C Penney Company Inc, equating to 400,000 shares. Caerus Global Investors Llc owns 120,000 shares representing 3.05% of their total US portfolio. Moreover, Mcglinn Capital Management Inc has 2.78% of their total portfolio invested in the company, equating to 99,200 shares. The New York-based Armistice Capital Llc has a total of 2.35% of their portfolio invested in the stock. Forester Capital Management Ltd, a Illinois-based fund reported 237,220 shares owned.

J. C. Penney Company, Inc. is a holding company. The company has a market cap of $2.13 billion. The Company’s operating subsidiary is J. It currently has negative earnings. C.