J.C. Penney (JCP) Hits Multi-Year Lows as Patience Wears Thin
Tweet
Share
E-mail
Get Alerts JCP Hot Sheet
Price: $0.18 --0%
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 8 | New: 36
Join SI Premium – FREE
Shares of J.C. Penney (NYSE: JCP) are trading at lows not seen since early 2009. Today's downturn extends Friday’s losses which came on the heels of disappointing third quarterly earnings and dismal sales numbers that are exacerbated fears that the company's so-called turnaround isn't materializing.
On Friday, equity analysts at Citi downgrade the stock and that was followed by additional downgrades today. Investors once optimistic about CEO Ron Johnson's ability to turn the ship are exiting the name en masse, resulting in a 5-day decline of 19 percent.
Credit rating agencies have also taken aim, warning about a potential cash crunch.
Late Friday, S&P downgraded J.C. Penney corporate credit rating to 'B-' from 'B+'. "The downgrade reflects recent performance that has remained poor and our view that it will continue to be weak over the next 12 months," said Standard & Poor's credit analyst David Kuntz. "Credit protection measures have eroded meaningfully because of the company's decline in EBITDA, and we expect that they could deteriorate further over the next year. It also incorporates our belief that the company is likely to experience further operational disruptions over the next several quarters as it implements its new pricing and merchandising strategy."
Shares of J.C. Penney last traded at $18.83, down 8.8 percent.
On Friday, equity analysts at Citi downgrade the stock and that was followed by additional downgrades today. Investors once optimistic about CEO Ron Johnson's ability to turn the ship are exiting the name en masse, resulting in a 5-day decline of 19 percent.
Credit rating agencies have also taken aim, warning about a potential cash crunch.
Late Friday, S&P downgraded J.C. Penney corporate credit rating to 'B-' from 'B+'. "The downgrade reflects recent performance that has remained poor and our view that it will continue to be weak over the next 12 months," said Standard & Poor's credit analyst David Kuntz. "Credit protection measures have eroded meaningfully because of the company's decline in EBITDA, and we expect that they could deteriorate further over the next year. It also incorporates our belief that the company is likely to experience further operational disruptions over the next several quarters as it implements its new pricing and merchandising strategy."
Shares of J.C. Penney last traded at $18.83, down 8.8 percent.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- SAP Q1 results fall short of Wall Street estimates as transformation kicks off
- Enphase Energy (ENPH) PT Lowered to $130 at Truist Securities
- KBR, Inc. (KBR) PT Raised to $83 at Stifel
Create E-mail Alert Related Categories
Analyst Comments, Credit Ratings, Insiders' BlogRelated Entities
Citi, Standard & Poor's, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
