Cibc World Market Inc. Reduces Stock Position in JPMorgan Chase & Co. $JPM

Key Points

• CIBC World Markets reduced its JPMorgan stake by 14% in the second quarter, selling 377,093 shares and retaining 2.31 million shares valued at approximately $757.3 million. Institutional investors still own 71.55% of the stock.
• JPMorgan reported strong results, with quarterly revenue up 27.7% year over year to $58.02 billion and EPS of $6.14, beating estimates. The bank also raised its quarterly dividend from $1.50 to $1.65 per share, implying a 1.9% yield.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $359.96 target price, although persistent inflation, elevated oil prices and potential credit risks remain concerns.

Cibc World Market Inc. reduced its stake in JPMorgan Chase & Co. (NYSE:JPM - Free Report) by 14.0% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,313,670 shares of the financial services provider's stock after selling 377,093 shares during the period. JPMorgan Chase & Co. makes up about 1.2% of Cibc World Market Inc.'s holdings, making the stock its 16th largest holding. Cibc World Market Inc. owned 0.09% of JPMorgan Chase & Co. worth $757,334,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently made changes to their positions in the company. Norges Bank purchased a new stake in shares of JPMorgan Chase & Co. in the fourth quarter worth about $11,396,496,000. Bank of America Corp DE increased its stake in 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 acquiring an additional 8,941,351 shares during the last quarter. Ascentis Wealth Management LLC raised its holdings in shares of JPMorgan Chase & Co. by 32,672.0% in the 2nd quarter. Ascentis Wealth Management LLC now owns 4,647,071 shares of the financial services provider's stock valued at $1,521,126,000 after acquiring an additional 4,632,891 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund boosted its position in shares of JPMorgan Chase & Co. by 31.5% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 6,944,004 shares of the financial services provider's stock valued at $2,042,648,000 after acquiring an additional 1,662,250 shares during the last quarter. Finally, International Assets Investment Management LLC bought a new stake in shares of JPMorgan Chase & Co. during the 1st quarter valued at about $371,195,000. 71.55% of the stock is currently owned by hedge funds and other institutional investors.

JPMorgan Chase & Co. News Roundup

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

• Positive Sentiment: Strong third-quarter revenue outlook: JPMorgan expects investment-banking fees and Markets revenue to increase in the mid-to-high teens year over year. A robust deal pipeline and trading activity suggest continued strength in fee income and support expectations for another strong quarter. JPMorgan Sees Investment Banking and Trading Powering Q3 Growth
• Positive Sentiment: Higher rates may support lending revenue: Following the Federal Reserve’s rate increase, JPMorgan and other major banks raised prime lending rates to 7%. This could improve asset yields and net interest income, although deposit costs and borrower demand remain important offsets. U.S. Banks Raise Prime Interest Rates Following Fed Hike
• Positive Sentiment: Shareholder-return and franchise catalysts: Analysts highlighted JPMorgan’s planned quarterly dividend increase to $1.65, while new mandates—including financing Drax’s solar acquisition and Canada airport concessions—could add to advisory and underwriting revenue. JPMorgan Dividend and Long-Term Outlook
• Neutral Sentiment: Continued strategic visibility: JPMorgan will report third-quarter results on October 13. The bank is also hosting its India conference and pursuing a large, multiyear U.S. housing initiative, developments that reinforce its global reach but are unlikely to materially affect near-term earnings. JPMorgan Third-Quarter Earnings Call Announcement
• Negative Sentiment: Inflation and oil risks remain overhangs: CEO Jamie Dimon said inflation has not clearly been defeated. Separately, JPMorgan’s commodities team abandoned a firm oil-price forecast as the prolonged Iran conflict pushed Brent above $100 per barrel. Persistent inflation could delay rate cuts, raise credit risks and increase market volatility. Jamie Dimon on Inflation

JPMorgan Chase & Co. Price Performance

Shares of NYSE JPM opened at $348.92 on Friday. The company has a 50 day simple moving average of $353.73 and a two-hundred day simple moving average of $323.85. The company has a market capitalization of $927.49 billion, a price-to-earnings ratio of 14.95, a P/E/G ratio of 1.44 and a beta of 0.98. JPMorgan Chase & Co. has a fifty-two week low of $279.10 and a fifty-two week high of $366.50. The company has a debt-to-equity ratio of 1.30, a quick ratio of 0.85 and a current ratio of 0.85.

JPMorgan Chase & Co. (NYSE:JPM - Get Free Report) last released its earnings results on Tuesday, July 14th. The financial services provider reported $6.14 EPS for the quarter, topping the consensus estimate of $5.59 by $0.55. JPMorgan Chase & Co. had a return on equity of 18.23% and a net margin of 21.86%.The business had revenue of $58.02 billion for the quarter, compared to the consensus estimate of $50.72 billion. During the same period in the previous year, the company posted $4.96 earnings per share. The company's revenue for the quarter was up 27.7% compared to the same quarter last year. Analysts expect that JPMorgan Chase & Co. will post 24.3 EPS for the current fiscal year.

JPMorgan Chase & Co. Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Saturday, October 31st. Investors of record on Tuesday, October 6th will be paid a $1.65 dividend. This represents a $6.60 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Tuesday, October 6th. This is a positive change from JPMorgan Chase & Co.'s previous quarterly dividend of $1.50. JPMorgan Chase & Co.'s dividend payout ratio (DPR) is presently 25.71%.

Insider Activity

In related news, insider Robin Leopold sold 2,500 shares of the 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 sale, the insider directly owned 71,047 shares of the company's stock, valued at approximately $25,066,092.07. This represents a 3.40% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Stacey Friedman sold 5,467 shares of the firm's stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $330.73, for a total transaction of $1,808,100.91. Following the sale, the general counsel owned 40,961 shares of the company's stock, valued at approximately $13,547,031.53. This represents a 11.78% 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 have sold a total of 10,467 shares of company stock worth $3,593,651 over the last three months. 0.41% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several brokerages have recently commented on JPM. Evercore reissued an "outperform" rating and set a $360.00 price objective on shares of JPMorgan Chase & Co. in a report on Monday, July 6th. Jefferies Financial Group set a $350.00 price objective on JPMorgan Chase & Co. in a report on Tuesday, July 14th. Wells Fargo & Company boosted their target price on JPMorgan Chase & Co. from $375.00 to $390.00 and gave the stock an "overweight" rating in a research report on Friday, August 14th. UBS Group increased their price target on shares of JPMorgan Chase & Co. from $384.00 to $400.00 and gave the company a "buy" rating in a research report on Monday, August 3rd. Finally, Bank of America boosted their price objective on shares of JPMorgan Chase & Co. from $408.00 to $420.00 and gave the stock a "buy" rating in a report on Thursday, July 16th. Sixteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $359.96.

JPMorgan Chase & Co. Company Profile

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

The company operates through four primary business areas: Consumer & Community Banking; Commercial & Investment Banking; Asset & Wealth Management; and Corporate. Its offerings include deposit accounts, credit cards, mortgages, auto loans, business banking, commercial lending, treasury services, investment banking, securities trading, investment management and private banking.

JPMorgan Chase serves customers in the United States and maintains operations and client relationships across numerous international markets.

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