Category: Stock Market News

L Brands Inc. was downgraded to neutral from buy at UBS on Monday on concerns that same-store sales for the year will be sluggish. The bank lowered its price target to $74 from $101. And UBS lowered its 2016 same-store sales estimate to a 3% increase from 5% growth. Among recent changes announced at L Brands, Victoria’s Secret Chief Executive Sharen Jester Turney resigned in February, the company is shutting its swim business and it’s believed the company will discontinue its catalog. “In isolation these variables look like the right moves,” UBS wrote in a Monday note. “But the high number of new/unproven initiatives adds execution risk.” UBS analysts are also concerned that while the bralette style of undergarment provides a number of advantages, like higher gross margin, the lower average selling price of about $25 versus $40 or more for a traditional brassiere could be a headwind. The bank calls the company a “best-in-breed name with significant long-term global top line opportunity,” but believes the near-term is less certain. L Brands shares are up 1.2% in Monday trading, but down 26.5% for the year to date. The S&P 500 is up 0.5% for the year so far.

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Shares of Lending Club plunged 23% Monday morning after several analyst downgrades on news that the peer-to-peer lender’s chief executive, Renaud Laplache, was resigning due to problems with a loan sale to a single investor. Stifel analysts downgraded Lending Club to hold from buy saying “our faith and trust is shaken by the events announced this morning” and that they await more company guidance. Sterne Agee analysts downgraded Lending Club to underperform from neutral and cut the price target to $5 from $8, but said their concern lies with the ability of the company to obtain future funding. William Blair analysts suspended their rating on Lending Club due to a lack of information available.

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From:: Stock Market News

Shares of Lending Club plunged 23% Monday morning after several analyst downgrades on news that the peer-to-peer lender’s chief executive, Renaud Laplache, was resigning due to problems with a loan sale to a single investor. Stifel analysts downgraded Lending Club to hold from buy saying “our faith and trust is shaken by the events announced this morning” and that they await more company guidance. Sterne Agee analysts downgraded Lending Club to underperform from neutral and cut the price target to $5 from $8, but said their concern lies with the ability of the company to obtain future funding. William Blair analysts suspended their rating on Lending Club due to a lack of information available.

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J.C. Penney Co. Inc. said Monday that it will expand its new appliance showroom to nearly 500 stores between July and the fall after a three-market pilot proved successful. Appliances will also be available on the retailer’s website. Appliances were re-introduced in San Diego, San Antonio and Tampa, Fla. on February 1. The company said it will also allocate additional floor space to window coverings including curtains and shades. J.C. Penney is testing a new furniture line, Signature Design by Ashley, from family-owned Ashley Furniture, and flooring offerings in Tampa, Fla and Washington D.C. through a venture with Empire Today. In addition, J.C. Penney announced that it exceeded earnings before interest, taxes, depreciation and amortization expectations for the fiscal first quarter ahead of the earnings announcement on Friday. The company says it still expects to achieve its full-year EBITDA guidance of $1 billion. The announcement comes after a New York Post report on Friday that the company was taking cost-cutting measures like cutting hours. Shares fell Friday, but are up 0.7% in Monday trading. J.C. Penney shares are up 25% for the year-to-date while the S&P 500 is up 0.9% for the same period.

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U.S. stocks opened lower on Monday, as a drop in oil prices along with downbeat trade data from China weighed on sentiment. The S&P 500 was down one point, or less than 0.1%, to 2,056. The Dow Jones Industrial Average was down 20 points, or 0.1%, to 17,727 at the open. Meanwhile, the Nasdaq Composite began the session down a point, or less than 0.1%, at 4,735.

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Kroger Co. said Monday that it has recalled its broccoli raisin salad on concerns that sunflower kernels provided by a supplier are contaminated with listeria. Kroger has taken the item off the shelves and customers are advised to return the product to the store for a refund or replacement. No illnesses have been reported. Kroger, Jay-C, Dillons, Bakers, Gerbes and Food 4 Less in the Midwest are included in the recall. Kroger shares are down 0.1% in premarket trading and down 17.4% for the year to date. The S&P 500 is up 0.7% for the same period.

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From:: Stock Market News

Kroger Co. said Monday that it has recalled its broccoli raisin salad on concerns that sunflower kernels provided by a supplier are contaminated with listeria. Kroger has taken the item off the shelves and customers are advised to return the product to the store for a refund or replacement. No illnesses have been reported. Kroger, Jay-C, Dillons, Bakers, Gerbes and Food 4 Less in the Midwest are included in the recall. Kroger shares are down 0.1% in premarket trading and down 17.4% for the year to date. The S&P 500 is up 0.7% for the same period.

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Abercrombie & Fitch Co. said Monday that it will expand its presence in the Middle East to Saudi Arabia, Qatar, Bahrain and Oman through its partnership with Majid Al Futtaim Fashion. The teen retailer has already opened eight stores in the United Arab Emirates and Kuwait since 2013 with Majid Al Futtaim Fashion. The first Abercrombie & Fitch store will open in Qatar in the first quarter in 2017 and in Saudi Arabia in the second half of 2017. Abercrombie & Fitch shares are unchanged in premarket trading, and up 14.4% for the past year. The S&P 500 is down 2.8% for the last 12 months.

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Krispy Kreme Doughnuts Inc. said Monday it has agreed to be acquired by JAB Beech for $21 a share in cash, in a deal with an equity value of about $1.35 billion. The price is equal to a premium of 25% over Krispy Kreme’s closing stock price on Friday, the company said in a statement. JAB focuses on long-term investments in premium brands, and owns stakes in retail coffee companies, including Keurig Green Mountain, Jacobs Douwe Egberts and Peet’s Coffe & Tea. The deal is expected to close in the third quarter, after which Krispy Kreme will be privately owned but continue to operate from its headquarters in Winston-Salem, N.C. The stock was halted in premarket trade ahead of the announcement, but is up about 12% in the year so far, while the S&P 500 has gained 0.7%.

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Tribune Publishing Co. said Monday it is adopting a shareholder rights plan, also known as a poison pill, as it continues to fight to stave off an unsolicited bid from Gannett Co. . “Based on Gannett’s approach and continued hostility, the board is taking prudent measures to protect our shareholders’ best interests,” Tribune said in a statement. The company continues to view the Gannett offer as opportunistic and one that undervalues it assets, and is determined to push ahead with its own transformation plan. “The entire publishing industry has been turned upside down over the last few years and we believe in giving the team a reasonable period to execute on the compelling vision they have articulated,” Chairman Emeritus Eddy Hartenstein said in the statement. Goldman Sachs is acting as adviser to Tribune. Neither stock was active in premarket trade.

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