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.
More From Benzinga
Return the stores and pricing to its prior format and sales will increase. My entire family and my friends have stopped shopping at J.C. Penney's after they changed the stores to look like Target and priced merchandise like Apple products.
I love JC Pennys, it is where we go for clothes and so much more. I hope it can be saved. Or maybe stocks can bought at a decent price.
Does appear Kass may have had ulterior motive....
Funny you got both pro and con shoppers, are either of you investors?
And I always thought Pennys was a decent store, but usually only shop at Christmas.
Copyright © 2014 Microsoft. All rights reserved.
Stocks are facing some serious resistance as the bears tear into the market's respite.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.