J.C. Penney Company, Inc. (JCP) Shares Active after Upgrade at Morgan Stanley

J.C. Penney Company, Inc. (NYSE: JCP) shares rose in value on Monday February 13 on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.

The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.

Analysts at Morgan Stanley upgraded shares of J.C. Penney Company, Inc. (NYSE: JCP) from Underweight to Equal Weight today. With a rating of Equal Weight on the shares, the company has a 52-week high of $11.99. A number of other analysts have commented on the stock in recent days, and the company has earned a consensus one-year price target of $10.10, higher than the opening price of $7.25, a difference of 13.93 percent. Stock prices often move to the upside on recommendations and new price targets of professional brokerage firms.

Shares of J.C. Penney Company, Inc. (NYSE: JCP) opened at $7.25 yesterday trading between $7.18 and $7.38, and last traded at $7.25, which is a spike of $0.11 from the previous closing price.

J.C. Penney Company, Inc. (NYSE: JCP) currently has a market cap of 2.24B.

J.C. Penney Company, Inc. (NYSE: JCP) Average Daily Trading Volume

3,094,360 shares traded hands yesterday, 49 percent below normal, out of a total float 290,954,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.

As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

J.C. Penney Company, Inc. (NYSE: JCP) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.

Trades for J.C. Penney Company, Inc. (NYSE: JCP) have ranged from $6.35 – 11.9900, and the stock now has a 50-day MA of $7.22 and 200-day MA of $8.88. Today’s last price is 39.53%% under the 52 week high of $11.99.

Earnings growth is a critical factor to look at when investing in stocks and investors identify companies that have raised their earnings by at least 25% over a 3 year period.

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