NEW YORK (TheStreet) -- J.C. Penney (JCP) is struggling yet again over Thursday's session, dropping more than 3% by midday. The retailer saw 19.3 million shares change hands by the early afternoon and share prices to swing 3.5% lower to $6.07.JCP data by YCharts
Two days earlier, the retail chain announced it had amended and extended its poison pill in an effort to discourage potential buyers from making hostile takeover attempts. The existing shareholders rights plan has been extended to expire by Jan. 26, 2017, from an original expiration date of August of this year.
In addition, the board voted to lower the beneficial ownership threshold to 4.9% from 10%, meaning those that purchase a large portion of outstanding shares would see their ownership interest automatically diluted.
TheStreet Ratings team rates PENNEY (J C) CO as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate PENNEY (J C) CO (JCP) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: