01 September 2017
London
Reporter: Drew Nicol

JCPenney and Snap on top of FIS hot stocks


High street retailer JCPenney and Snap, owner of photo sharing app Snapchat, led the FIS Astec Analytics hot stocks list for the Americas for the week starting 21 August.

JCPenney saw short interest in its shares increase by 8 percent, which FIS noted is a 12-month high.

Conversely, the retailer's share price also rose 7 percent to $3.85 following the launch of a new clothing line, Frank + Lulu, combined with the purchase of a total of 185,135 shares by two of the company’s directors.

This was a small change, however, given that the retailer is still a long way from recovering the 61 percent loss its share price has suffered since August 2016.

In the technology world, Snap has experienced a short interest increase of 53 percent, representing a level of volatility that is to be expected from a product that is inexorably linked to user volumes.

The reasons for price fluctuations in stocks such as Snap are always up for debate, but FIS stated: “With borrowing costs relatively low, it is less likely that new lenders have been attracted by the fees on offer, but the recent upward trend in the share price—an increase of 25 percent over the last two weeks—could have attracted new institutional buyers into the share, hoping that the recent record low of $11.83 won’t be repeated any time soon.”

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