Replacing Penney’s on the index is Allegion plc (NYSE: ALLE-WI), a spin-off of Ingersoll-Rand plc (NYSE: IR) that will begin trading on the NYSE on December 1st under the ticker symbol “ALLE.” “When-issued” shares of Allegion closed at $43.99 on Friday. The company provides security systems for homes and businesses.
Meanwhile, back at Penney’s, the company’s stock will be added to the S&P MidCap 400. The share price has fallen nearly 50% in the past 12 months, cutting the company’s market cap in half as well. As of Friday’s closing Penney’s market was $1.96 billion.
Compare that to its balance sheet. In its third quarter earnings report, Penney listed inventory of $3.75 billion and net property and equipment of $5.75 billion. The inventory level rose by nearly $250 million sequentially and the reason the company posted an adjusted earnings per share loss of $1.81 in the third quarter was because it had to markdown all that stuff in order to move it.
There are times when it seems to make more sense for the company just to close all its stores, burn all its merchandise, and sell all its property. The company’s turnaround plan is the same plan that it had before Penney’s hired Ron Johnson as CEO and the reason Johnson was hired was to replace that failing plan and CEO Myron Ullman, who got his old job back when Johnson was canned. This company is going nowhere but to the S&P SmallCap 600 — if it lasts that long. And then it will just fade away.
Penney’s shares closed at $8.87 on Friday and fell another $0.14 in after-hours trading. The stock’s 52-week range is $6.24 to $23.10.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.