J.C. Penney stock is tanking, right now it’s down almost 6%.
There hasn’t been any particularly bad news about the flailing retailer today, but this selloff could have do with some news that broke Mondauy night. Hedge fund Perry Capital, once one of the biggest holders of the stock, said that it dump half its stake in the company.
Its stake from 8.62% of the company down to 3.28%, according to an SEC filing.
Big stockholders like Perry sell their stakes in waves. We could be riding one right now, especially since volume of the stock trading right now is a lot higher than average (around 46.3 million shares compared to around 28.7 million).
Another reason this could be happening is simply that JC Penney’s latest stock offering of 84 million shares has diluted the stock, and that’s finally showing up in the price.
Here’s the chart:
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