Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

J.C. Penney Company, Inc. (JCP) Jumps Over 4% On Upgrade: Does The Smart Money Agree?

Page 1 of 2

J.C. Penney Company, Inc. (NYSE:JCP) jumped as high as $9.11 per share in the morning or 4.35% from its closing price of $8.73 per share yesterday as ITG Research raised its revenue forecast on the company’s second quarter to $2.95 billion from $2.9 billion. This outlook is also more than the consensus of $2.86 billion. The retailer’s same-store sales forecast is an increase of 5% to 7% year-over-year, according to ITG Research, compared to the consensus of an increase of 4%. Furthermore, the stock was given a rating upgrade from investment analysts at Vetr. In a note to clients on Monday, the firm upgraded the retailer’s stock to a “Buy” from a “Hold”. Vetr’s price target on the stock is $8.77. The last update on the stock’s rating came from Piper Jaffray on June 25 which reiterated an “Overweight” rating. Year-to-date, the stock has climbed 38.24% while over the last year, making up for the majority of its losses in the second half of 2014; it has still declined 1.54% over the past 12 months.

J.C. Penney Company, Inc. (JCP), NYSE:JCP,

This positive performance of the company’s stock within 2015 echoes the increased interest hedge funds tracked by Insider Monkey had in the company by the end of the first quarter. At the end of March, a total of 29 of the hedge funds we track were bullish in this stock, a 12% increase from the close of the fourth quarter. More importantly, total holdings increased in value by 50.11% from the end of the fourth quarter to the end of the first quarter. On March 31, the hedge funds tracked by Insider Monkey owned $175.24 million in J.C. Penney shares, up from $116.74 million in the prior quarter. The stock jumped only 29.78% from January 2 to March 31.

General opinion is that hedge funds underperform the S&P 500 based on net returns. But we are missing something very important here. Hedge funds generally pull in strong returns from their top small-cap stocks and invest a lot of their resources into analyzing these stocks. They simply don’t take large enough positions in them relative to their portfolios to generate strong overall returns because their large-cap picks underperform the market. We share the top 15 small-cap stocks favored by the best hedge fund managers every quarter and this strategy has managed to outperform the S&P 500 every year since it was launched in August 2012, returning over 135% and beating the market by more than 80 percentage points (read the details). Because of this, we know that collective hedge fund sentiment is extremely telling and valuable.

Insider Monkey also tracks insider trading to monitor whether insiders are selling or purchasing their firm’s shares. J.C. Penney insiders did not make any purchases within 2015 but Executive Vice President for Human Resources, Brynn Evanson, had sold 6,761 shares by mid-May.

Taking all of this into consideration, let’s go over the key action encompassing J.C. Penney Company, Inc.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!