JPMorgan Chase & Co. (NYSE:JPM) Stock Price Down 2.5% – Here’s Why

JPMorgan Chase & Co. (NYSE:JPM) shares dropped 2.5% during mid-day trading on Wednesday . The company traded as low as $295.75 and last traded at $299.0370. Approximately 11,463,150 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 10,104,234 shares. The stock had previously closed at $306.74.

JPMorgan Chase & Co. News Summary

Here are the key news stories impacting JPMorgan Chase & Co. this week:

• Positive Sentiment: JPMorgan Asset Management launched the new JPMorgan Managed Futures Plus ETF (JPFP), expanding its active ETF lineup and giving the firm another product to gather assets in a fast-growing category. J.P. Morgan Asset Management Launches JPMorgan Managed Futures Plus ETF (JPFP) on NYSE
• Positive Sentiment: Jamie Dimon said JPMorgan could still deploy $10 billion to $20 billion on acquisitions over the next couple of years, reinforcing the bank’s financial strength and deal-making flexibility. Jamie Dimon Says JPMorganChase on Lookout for Potential Acquisitions
• Positive Sentiment: JPMorgan also announced it will redeem Series KK preferred stock, a routine capital-management move that can be viewed as a sign of balance-sheet strength. JPMorgan Chase to Redeem Series KK Preferred Stock

Analysts Set New Price Targets

Several brokerages have recently weighed in on JPM. HSBC increased their target price on shares of JPMorgan Chase & Co. from $288.00 to $312.00 and gave the company a “hold” rating in a research note on Monday, May 4th. The Goldman Sachs Group set a $361.00 price objective on shares of JPMorgan Chase & Co. in a research report on Tuesday, April 14th. Piper Sandler boosted their target price on JPMorgan Chase & Co. from $325.00 to $345.00 and gave the company an “overweight” rating in a research report on Wednesday, April 15th. Jefferies Financial Group reiterated a “neutral” rating on shares of JPMorgan Chase & Co. in a report on Monday, May 4th. Finally, UBS Group dropped their price objective on JPMorgan Chase & Co. from $380.00 to $375.00 in a report on Wednesday, May 6th. Fifteen research analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company. According to MarketBeat, JPMorgan Chase & Co. currently has a consensus rating of “Moderate Buy” and a consensus price target of $339.08.

JPMorgan Chase & Co. Stock Up 0.8%

The stock has a market cap of $801.14 billion, a PE ratio of 14.33, a price-to-earnings-growth ratio of 1.46 and a beta of 1.03. The business has a fifty day moving average of $302.25 and a 200-day moving average of $306.84. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.86 and a quick ratio of 0.86.

JPMorgan Chase & Co. (NYSE:JPM) last issued its earnings results on Tuesday, April 14th. The financial services provider reported $5.94 earnings per share for the quarter, beating analysts’ consensus estimates of $5.50 by $0.44. JPMorgan Chase & Co. had a return on equity of 17.54% and a net margin of 20.66%.The business had revenue of $50.54 billion during the quarter, compared to analyst estimates of $48.30 billion. During the same period in the previous year, the company posted $5.07 EPS. JPMorgan Chase & Co.’s revenue was up 10.0% on a year-over-year basis. Equities research analysts anticipate that JPMorgan Chase & Co. will post 22.4 earnings per share for the current year.

JPMorgan Chase & Co. Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Monday, July 6th will be given a dividend of $1.50 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $6.00 dividend on an annualized basis and a yield of 2.0%. JPMorgan Chase & Co.’s dividend payout ratio (DPR) is 28.74%.

Insider Buying and Selling at JPMorgan Chase & Co.

In other news, CFO Jeremy Barnum sold 3,022 shares of the stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $309.41, for a total transaction of $935,037.02. Following the transaction, the chief financial officer directly owned 32,438 shares in the company, valued at approximately $10,036,641.58. This trade represents a 8.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Stacey Friedman sold 5,468 shares of JPMorgan Chase & Co. stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $300.27, for a total transaction of $1,641,876.36. Following the transaction, the general counsel directly owned 46,428 shares in the company, valued at approximately $13,940,935.56. The trade was a 10.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 28,589 shares of company stock worth $8,747,496 over the last quarter. 0.41% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On JPMorgan Chase & Co.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Morgan Stanley grew its holdings in JPMorgan Chase & Co. by 1.4% in the fourth quarter. Morgan Stanley now owns 66,385,268 shares of the financial services provider’s stock worth $21,390,662,000 after purchasing an additional 939,421 shares during the last quarter. Bank of America Corp DE boosted its position in shares of JPMorgan Chase & Co. by 15.8% in the 1st quarter. Bank of America Corp DE now owns 65,660,460 shares of the financial services provider’s stock worth $19,314,681,000 after purchasing an additional 8,941,351 shares in the last quarter. Norges Bank purchased a new position in JPMorgan Chase & Co. during the 4th quarter worth $11,396,496,000. Bank of New York Mellon Corp increased its position in JPMorgan Chase & Co. by 5.4% during the 4th quarter. Bank of New York Mellon Corp now owns 23,424,482 shares of the financial services provider’s stock valued at $7,547,837,000 after buying an additional 1,194,583 shares in the last quarter. Finally, Legal & General Group Plc raised its stake in JPMorgan Chase & Co. by 0.6% in the fourth quarter. Legal & General Group Plc now owns 19,019,564 shares of the financial services provider’s stock valued at $6,128,484,000 after buying an additional 110,586 shares during the last quarter. Hedge funds and other institutional investors own 71.55% of the company’s stock.

JPMorgan Chase & Co. Company Profile

JPMorgan Chase & Co (NYSE: JPM) is a diversified global financial services firm headquartered in New York City. The company provides a wide range of banking and financial products and services to consumers, small businesses, corporations, governments and institutional investors worldwide. Its operations span retail banking, commercial lending, investment banking, asset management, payments and card services, and treasury and securities services.

The firm’s principal business activities are organized across several core lines: Consumer & Community Banking, which offers deposit accounts, mortgages, auto loans, credit cards and branch and digital banking under the Chase brand; Corporate & Investment Banking, which provides capital markets, advisory, underwriting, trading and risk management services; Commercial Banking, delivering lending, treasury and capital solutions to middle-market and corporate clients; and Asset & Wealth Management, which offers investment management, private banking and retirement services to institutions and high-net-worth individuals.