B.Riley FBR Keeps a Hold Rating on JC Penney

By Ryan Adsit

In a report released today, Jeff Van Sinderen from B.Riley FBR maintained a Hold rating on JC Penney (NYSE: JCP), with a price target of $3.50. The company’s shares closed on Friday at $3.17, close to its 52-week low of $2.35.

Van Sinderen observed:

“On 11/10 pre-mkt, JCP reported Q3 results with sales/comps/EBITDA that exceeded recently lowered (pre-announcement) expectations. Comps were +1.7%, as they benefitted from women’s inventory clearance/liquidation activity. Comps improved, as Q3 progressed and were positive ex-accelerated clearance. Appliances were up 128% and comped up over 30%. Over 70% of appliances were purchased with the private label credit card. Women’s apparel comped positive in October (first time in 14 months), even excluding accelerated clearance sales. Nearly all categories improved sequentially. Home, Sephora, footwear, handbags and Salon outperformed the consolidated comp and fine jewelry and women’s specialty comped positive. Sephora continued to drive traffic and the launch of the exclusive Fenty Beauty offering by The company announced that former Chief Merchant John Tighe left the company and the .”

According to TipRanks.com, Sinderen is a 1-star analyst with an average return of -2.2% and a 46.7% success rate. Sinderen covers the Services sector, focusing on stocks such as The Finish Line, Tuesday Morning, and American Eagle.

Currently, the analyst consensus on JC Penney is Hold and the average price target is $3.04, representing a -4.1% downside.

In a report issued on October 30, Susquehanna also downgraded the stock to Hold with a $3 price target.

Based on JC Penney’s latest earnings report for the quarter ending July 31, the company posted quarterly revenue of $2.96 billion and GAAP net loss of $62 million. In comparison, last year the company earned revenue of $2.86 billion and had a GAAP net loss of $67 million.

Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of JCP in relation to earlier this year.

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J. C. Penney Co., Inc. operates department stores, which consist of selling merchandise and services to consumers through its department stores. It sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney and home furnishings.