The stock price of J.C. Penney Company, Inc. (NYSE:JCP) is declining on a report that Hayman Capital Management L.P., the hedge fund headed by Kyle Bass, sold its stake in the company. As of 1 PM ET Thursday, the stock of the beleaguered department store chain is trading around $8.79 per share, down by 9%.
Kyle Bass’ investment in J.C. Penney
Bass was one of the hedge fund managers who invested in J.C. Penney Company, Inc. (NYSE:JCP) when Bill Ackman of Pershing Square Capital Management, then the largest shareholder of the department store chain exited his position in the company. Back then, Bass acquired a 5.2% stake or 11.4 million shares, which made him one of the largest shareholders of the company.
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A few days ago, the stock price of J.C. Penney Company, Inc. (NYSE:JCP) climbed as much as $10.62 per share due to its positive same store sales performance for the month of November. According to the company, its same store sales for the month increased 10%.
Mike Ullman on J.C. Penney’s sales performance
Mike Ullman, chief executive officer of J.C. Penney Company, Inc. (NYSE:JCP) said, “We are pleased with our performance over the Thanksgiving holiday weekend, particularly in light of the continued spending pressures on consumers. The combination of our great merchandise and compelling promotions put us in a position to succeed in a highly competitive environment, and our teams executed very well.”
During the Black Friday sales event, the market share of J.C. Penney Company, Inc. (NYSE:JCP) increased from 11% to 13%, according to InfoScout, a research firm that tracked the spending of 50,000 shoppers that day.
Analysts at RW Baird were encouraged by the same store sales performance of J.C. Penney Company, Inc. (NYSE:JCP), and raised their price target for the stock to $11 per share. They maintained their neutral rating for the stock, but indicated the possibility that their opinion on the equity could become more positive if sales continues to improve and liquidity concerns ease.