JC Penney jumps on unconfirmed rumors
Market chatter sends shares higher in a struggling market.
Shares of JC Penney (JCP) saw strength during Friday's trading session after a number of rumors circulated about the Texas retailer. The stock rose by nearly 3% Friday to close at $28.08
In recent months, JC Penney has been under pressure after reporting a first-quarter loss of 25 cents a share, disappointing analyst estimates of a loss of 10 cents a share. The retailer's sales of $3.15 billion came in below the $3.46 billion consensus estimate. J.C. Penney also discontinued its dividend.
JCP's shares lost nearly 20% after the disappointing first-quarter results and dividend suspension. Over the last year, JC Penney has lost around 22%. Notable hedge fund manager of Pershing Square, Bill Ackman, has been a long time bull, ever since Apple executive Ron Johnson took over at the helm.
Friday's strength was attributed to two rumors.
Investor message board posts suggested that JC Penney is looking to announce a partnership with a home-shopping channel. The unconfirmed rumors stated that the company was looking to buy one-hour slots of TV time.
Benzinga reached out to the company for a comment on these rumors, but JC Penney has not been available to comment.
J. C. Penney operates department stores in the United States and Puerto Rico. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. It also provides various services, such as styling salons, optical, portrait photography, and custom decorating.
JCP shares are down 20% this year.
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