How Bearish Are Investors Regarding J. C. Penney Company, Inc. (JCP)?

On December 03, 2019, J. C. Penney Company, Inc. (NYSE:JCP) shares gained 2.73% or 0.03 points to close at $1.13 with a thin trading volume of 3.463 million shares. It opened the trading session at $1.11, the shares rose to $1.14 and dropped to $1.09, the range by which the price of stock traded the whole day. The company now has a market cap of $353 million and currently has 312.21 million outstanding shares. J. C. Penney Company, Inc. (JCP) stock has accumulated 9.71 percent of market value in 21 trading days.

JCP stock’s trailing 3-year beta is 1.66, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.69 share in the trailing 52 weeks. The stock’s value surged 8.65 percent year to date (YTD) compared to a decline of -20.98 percent in 52 week’s period. The firm’s shares are still trading -40.99 percent below its 1-year high of $1.91 and 113.17 percent up from 52-week low of $0.53. The average consensus ranking on the company is 3.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

J. C. Penney Company, Inc. (JCP) is most likely going to rise -100 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $1-month high price target. This represents a whopping -11.5 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $1, which means a return possibility of -11.5 percent in comparison with the closing price of the stock of $1.13 on December 03. The lowest price set for the stock is $0.5 — just above -55.75 percent from JCP share price now.

Past records have indicated that shares in J. C. Penney Company, Inc. declined on 23 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.

Let’s take a glimpse at some insider activity at J. C. Penney Company, Inc. (NYSE:JCP) and observe the pattern. The earliest insider trade happened on 09/06/2019. PAYNE LISA A gathered a total of 230 thousand shares of the firm at average share price of $0.79. The total amount for the purchase was set at $181.7 thousand. On completing this exchange, the Director account balance was 517.89 thousand shares. The stock grew 39.24 percent from that insider purchase. On 08/28/2019, Wlazlo Michelle, EVP, Chief Merchant, did a purchase of 100 thousand shares at a price of $0.59 per share. This increased 59 thousand shares to the insider’s fortune and the stock experienced a 86.44 percent rally in price since the news became public. This exchange saw 640.04 thousand shares get into the EVP, Chief Merchant account.

On 08/27/2019, Director TERUEL JAVIER G recorded a purchase transaction valued at $295 thousand. The purchase at $0.59 a share has added 500 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 86.44 percent increase since the transaction reporting date. The company insider is left with 2.26 million shares remaining in the account. Gensch Shawn R, who works as EVP, Chief Customer Officer at the company, performed a purchase of 250 thousand shares in a transaction worth $145 thousand. The acquisition recorded on 08/27/2019 was priced at $0.58 per share. The stock price soared 89.66 percent since the transaction. Gensch Shawn R currently holds a stake of 1 million in JCP stock which is worth $1.13 million after the insider buying.

The stock is lingering around the initial support level of $1.1. After this, the following support is at the zone of $1.07. Up until the time the JCP stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 56.35 on the daily chart, and this may be a cause for concern. In case the price goes below $1.07 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $1.15 level may cause a pull-back move approaching $1.17 mark.

The industry JCP deals with has an average P/E of 10.3. Its P/B ratio is standing at 0.4X compared to the 1.4 industry average. J. C. Penney Company, Inc. has a 36.5% gross profit margin, with its operating margin around -0.9%. Alongside this, the company’s net profit margin currently stands at -2.9%.