JC Penney Short Sellers Are Changing Their Minds
Loomes said that the SEC lending figures for JC Penney shows that borrowing volumes have been falling "steadily and consistently" since early February and is now down about 22 percent. He said that shares of JC Penney have been climbing over the same period, but have done so with "large peaks and troughs" with fairly large range and volatility.
"This level of reduction in borrowing is a classic signal we see when short sellers are covering positions and either expecting prices to gain ground, or at least not willing to bet they will be falling any time soon," Loomes said. "The fact that the borrowing reductions were consistent despite a very inconsistent move in the share price, probably hints more at their uncertainty and caution, seemingly expecting risk to lie more with the upside.
Shares traded recently at $9.14, up 2.6 percent.
Latest Ratings for JCP
|Feb 2017||B. Riley||Downgrades||Buy||Neutral|
|Feb 2017||Morgan Stanley||Upgrades||Underweight||Equal-Weight|
|Feb 2017||Susquehanna||Initiates Coverage On||Positive|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.