Why J C Penney, American International Group & Others Are Trending on Monday?

JCP Could Double in Next 3 Years

J C Penney Company Inc (NYSE:JCP)’s stock has gained more than 3% following a Barron’s report, which said that the stock price of the company could double in the next three years. The report added that J C Penney Company could earn $2 per share after it completes the turnaround in the next three to five years. J C Penney’s stock could surge as much as 50% – 100%, if Marvin Ellison, the new CEO of the company, could extend the ongoing improvements. The report cites Christopher Terry, a portfolio manager, who thinks that J C Penney Company is recapturing the market. Its margins and inventory are moving in the right direction despite the difficult times in the industry.

At the end of 2015, Jim Simons’s Renaissance Technologies was one of the biggest stakeholders in J C Penney Company Inc (NYSE:JCP) with the total ownership of more than 17.9 million shares of the company. He was among  the 27 hedge funds tracked by us that reported stakes in the company in the previous round of 13F filings.

American International Group Raises $1.25 Billion

American International Group Inc (NYSE:AIG) has raised $1.25 billion by selling a large part of its stake in People’s Insurance Company of China Holdings Company (PICC), China’s state-owned insurance company. AIG sold 740 million shares of PICC, most of which were bought by institutional investors. Peter Hancock, American International’s CEO, announced in January that he is going to create a new legacy portfolio, including divestitures,  reinsurance and sell-offs. This step was taken after pressure from elite hedge fund investors like John Paulson and Carl Icahn to boost returns.  American International Group is scheduled to announce its earnings for the last quarter after the closing bell today.

Overall, 101 hedge funds from our database held long positions in American International Group Inc (NYSE:AIG) at the end of the fourth quarter of 2015, having amassed $10.9 billion worth of stock. Stephen J. Errico’s Locust Wood Capital Advisers has 641,068 shares of the company, according to its 13F filing for the end of March.

Disclosure: None