JPMorgan Chase & Co. (NYSE:JPM) Shares Down 4.2% – Time to Sell?

JPMorgan Chase & Co. (NYSE:JPM)’s stock price fell 4.2% during mid-day trading on Thursday. The company traded as low as $335.93 and last traded at $337.4840. 12,775,998 shares traded hands during mid-day trading, an increase of 41% from the average daily volume of 9,037,038 shares. The stock had previously closed at $352.11.

Key JPMorgan Chase & Co. News

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

• Positive Sentiment: JPMorgan is expanding its wealth-management business in the Middle East, with approval for a regulated private-banking branch in Dubai, and has added experienced advisers in the U.S. These steps could support future wealth revenues. Article: What Does JPMorgan Chase Gain From Its Dubai Push And US Hires?
• Neutral Sentiment: J.P. Morgan’s plans to add Saudi Arabian and Philippine bonds to an emerging-market debt index concern its index business, but the report does not indicate a material effect on JPMorgan Chase’s overall results. Article: JP Morgan to add Philippines and Saudi Arabia to key EM bond index
• Negative Sentiment: Senate Finance Committee Democrats reportedly plan to examine JPMorgan’s banking relationship with Epstein and how senior executives handled it. The prospect of an inquiry adds potential reputational and legal risk, helping explain the selling pressure. Article: Democrats to probe JPMorgan’s relationship with Epstein
• Negative Sentiment: Democrats’ control of Congress could increase oversight of financial firms and slow the administration’s deregulation agenda, a potential headwind for the banking sector and JPMorgan. Article: Midterm Election Results: What’s Ahead for Financial Stocks?

Analysts Set New Price Targets

A number of equities research analysts have recently commented on JPM shares. Wells Fargo & Company raised their price objective on shares of JPMorgan Chase & Co. from $375.00 to $390.00 and gave the stock an “overweight” rating in a research note on Friday, August 14th. HSBC increased their price target on shares of JPMorgan Chase & Co. from $369.00 to $377.00 and gave the stock a “hold” rating in a report on Monday, September 28th. Zacks Research cut shares of JPMorgan Chase & Co. from a “strong-buy” rating to a “hold” rating in a report on Monday, September 14th. Freedom Broker upgraded shares of JPMorgan Chase & Co. from a “hold” rating to a “strong-buy” rating in a research report on Thursday, October 15th. Finally, UBS Group increased their target price on shares of JPMorgan Chase & Co. from $395.00 to $400.00 and gave the stock a “buy” rating in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and thirteen have given a Hold rating to the stock. According to MarketBeat, JPMorgan Chase & Co. presently has a consensus rating of “Moderate Buy” and a consensus target price of $368.33.

JPMorgan Chase & Co. Trading Down 4.2%

The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.85 and a current ratio of 0.85. The firm has a market capitalization of $897.10 billion, a price-to-earnings ratio of 14.16, a P/E/G ratio of 1.33 and a beta of 1.03. The company has a 50 day moving average price of $342.66 and a two-hundred day moving average price of $323.49.

JPMorgan Chase & Co. (NYSE:JPM) last announced its earnings results on Tuesday, October 13th. The financial services provider reported $5.75 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.94 by ($0.19). The business had revenue of $50.17 billion for the quarter, compared to analysts’ expectations of $51.23 billion. JPMorgan Chase & Co. had a net margin of 21.85% and a return on equity of 18.48%. The company’s quarterly revenue was up 8.1% on a year-over-year basis. During the same quarter last year, the business earned $5.07 EPS. On average, research analysts forecast that JPMorgan Chase & Co. will post 23.95 EPS for the current year.

JPMorgan Chase & Co. Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Saturday, October 31st. Stockholders of record on Tuesday, October 6th were given a $1.65 dividend. This represents a $6.60 annualized dividend and a dividend yield of 2.0%. This is a positive change from JPMorgan Chase & Co.’s previous quarterly dividend of $1.50. The ex-dividend date was Tuesday, October 6th. JPMorgan Chase & Co.’s dividend payout ratio (DPR) is 27.68%.

Insider Activity at JPMorgan Chase & Co.

In related news, insider Robin Leopold sold 2,500 shares of the company’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $352.81, for a total transaction of $882,025.00. Following the completion of the transaction, the insider owned 71,047 shares in the company, valued at $25,066,092.07. This represents a 3.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.41% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Concorde Asset Management LLC grew its stake in JPMorgan Chase & Co. by 1.1% during the 2nd quarter. Concorde Asset Management LLC now owns 2,660 shares of the financial services provider’s stock valued at $871,000 after acquiring an additional 29 shares in the last quarter. Elevation Wealth Management LLC lifted its stake in JPMorgan Chase & Co. by 1.0% in the 2nd quarter. Elevation Wealth Management LLC now owns 3,074 shares of the financial services provider’s stock worth $1,006,000 after purchasing an additional 29 shares in the last quarter. Henrickson Nauta Wealth Advisors Inc. lifted its stake in JPMorgan Chase & Co. by 0.8% in the 2nd quarter. Henrickson Nauta Wealth Advisors Inc. now owns 3,531 shares of the financial services provider’s stock worth $1,156,000 after purchasing an additional 29 shares in the last quarter. Arkansas Financial Group Inc. lifted its stake in JPMorgan Chase & Co. by 1.1% in the 2nd quarter. Arkansas Financial Group Inc. now owns 2,667 shares of the financial services provider’s stock worth $873,000 after purchasing an additional 30 shares in the last quarter. Finally, Flynn Zito Capital Management LLC boosted its holdings in shares of JPMorgan Chase & Co. by 1.1% during the 2nd quarter. Flynn Zito Capital Management LLC now owns 2,830 shares of the financial services provider’s stock worth $926,000 after purchasing an additional 30 shares during the last quarter. 71.55% of the stock is owned by hedge funds and other institutional investors.

About JPMorgan Chase & Co.

JPMorgan Chase & Co is a global financial services company headquartered in New York City. Through its businesses, the company provides banking, lending, investment banking, payments, asset management and wealth management services to individuals, businesses, governments and institutional clients.

Its major business segments include Consumer & Community Banking, which offers deposit accounts, credit cards, mortgages, auto loans and other financial products; Commercial & Investment Banking, which provides corporate lending, advisory, underwriting, trading, treasury and payments services; and Asset & Wealth Management, which serves individual and institutional investors with investment management, brokerage and related advisory services.

JPMorgan Chase serves customers in the United States and operates internationally through offices and businesses in major financial centers around the world.