J. C. Penney Company, Inc.
), under a regulatory filing, declared last Friday that Chief
Executive Officer (CEO) Mike Ullman has invested nearly $1
million in the company's stock.
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Ullman bought 112,000 shares of J. C. Penney at $8.95 per share.
Following the news, shares of this department retailer rose 3.6%
to close at $9.19 yesterday.
J. C. Penney has been in troubled waters for quite some time now
due to waning revenues and higher losses. The company has not
shown any signs of recovery in the recent past. In fact, the
stock has lost more than half of its market value (55.9%) year to
date, which resulted in its elimination from Standard &
Poor's 500 index.
The company's lackluster performance under former CEO Ron Johnson
weakened its financials. Following the failure of his ambitious
turnaround strategies, J. C. Penney's board replaced Johnson with
Ullman to bring the company back on growth trajectory.
J.C.Penney, under Ullman, has taken several strategic initiatives
to drive traffic and conversion and better compete with peers
). The company reverted to promotions, which could be a
successful sales driver this holiday season but its chances of
hurting margins cannot be ignored.
J. C. Penney's endeavors to recover and give itself a major
facelift seem to be paying off well, as reflected in the
narrower-than-expected loss for third-quarter 2013. The company
delivered a loss of $1.81 per share that fared better than the
Zacks Consensus Estimate of loss of $1.86 but widened from a loss
of 93 cents in the year-ago quarter.
Ullman's investment will definitely boost investors' confidence
in this Zacks Rank #3 (Hold) stock. With the challenges
bracing J. C. Penney, it remains to be seen whether the
undertaken initiatives prove successful in reviving the stock's