Principal Financial Group Inc. Cuts Stake in JPMorgan Chase & Co. $JPM

Key Points

• Principal Financial Group reduced its JPMorgan stake by 2.8% in the second quarter, selling 137,945 shares. It still owned 4.82 million shares valued at approximately $1.58 billion, representing 0.8% of its portfolio.
• Other major institutions, including Bank of America, Morgan Stanley and Bank of New York Mellon, increased their JPMorgan holdings; institutional investors collectively own 71.55% of the stock.
• JPMorgan maintains a “Moderate Buy” consensus rating with an average price target of $359.96. The bank recently exceeded quarterly earnings and revenue expectations, reporting $6.14 in EPS and $58.02 billion in revenue.

Principal Financial Group Inc. decreased its stake in JPMorgan Chase & Co. (NYSE:JPM - Free Report) by 2.8% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,823,651 shares of the financial services provider's stock after selling 137,945 shares during the period. JPMorgan Chase & Co. makes up 0.8% of Principal Financial Group Inc.'s portfolio, making the stock its 23rd biggest position. Principal Financial Group Inc. owned 0.18% of JPMorgan Chase & Co. worth $1,578,926,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also modified their holdings of the company. Morgan Stanley boosted its holdings in JPMorgan Chase & Co. by 1.4% in the 4th quarter. Morgan Stanley now owns 66,385,268 shares of the financial services provider's stock worth $21,390,662,000 after acquiring an additional 939,421 shares during the period. Bank of America Corp DE grew its position in JPMorgan Chase & Co. by 15.8% in the first quarter. Bank of America Corp DE now owns 65,660,460 shares of the financial services provider's stock valued at $19,314,681,000 after acquiring an additional 8,941,351 shares in the last quarter. Norges Bank purchased a new stake in shares of JPMorgan Chase & Co. during the fourth quarter valued at approximately $11,396,496,000. Bank of New York Mellon Corp raised its stake in shares of JPMorgan Chase & Co. by 5.4% during the fourth 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 purchasing an additional 1,194,583 shares during the period. Finally, Legal & General Group Plc lifted its position in shares of JPMorgan Chase & Co. by 0.6% during the fourth quarter. Legal & General Group Plc now owns 19,019,564 shares of the financial services provider's stock worth $6,128,484,000 after purchasing an additional 110,586 shares in the last quarter. Institutional investors and hedge funds own 71.55% of the company's stock.

JPMorgan Chase & Co. News Summary

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

• Positive Sentiment: Hiring strengthens JPMorgan’s healthcare investment-banking franchise. The bank reportedly hired senior healthcare banker David Blais from Guggenheim Securities, adding industry expertise and potentially supporting advisory and capital-markets revenue. JPMorgan hires healthcare banker David Blais from Guggenheim
• Positive Sentiment: Persistent inflation could keep interest rates elevated. JPMorgan and BNP Paribas now expect another European Central Bank rate increase in December. Higher rates can support net interest income, although they may also weigh on loan demand and markets activity. JPMorgan and BNP Paribas expect ECB rate hike
• Neutral Sentiment: JPMorgan’s rate outlook conflicts with market pricing. A senior JPMorgan strategist expects no U.S. rate increase for the remainder of the year, while futures markets reportedly assign meaningful odds to a hike. The disagreement increases uncertainty around bank valuations, bond trading and interest income. No increase in interest rates anytime this year
• Neutral Sentiment: A strong labor market is a mixed development. Reports of 162,000 new jobs may support loan demand and interest income, but they also raise the possibility of higher-for-longer rates, increased credit costs and valuation pressure for financial stocks. JPMorgan falls even as 162,000 jobs revive higher rates
• Negative Sentiment: Reduced financing for Jane Street highlights competitive pressure. JPMorgan reportedly scaled back financing to the quantitative trading firm as Jane Street expands in U.S. Treasury market-making, underscoring competition from nonbank firms in fixed-income markets. JPMorgan scales back Jane Street financing
• Negative Sentiment: Legal exposure remains an overhang. JPMorgan is seeking to stay a $20 million fee order related to the Javice litigation, keeping attention on litigation costs and reputational risk. JPMorgan seeks stay of $20M Javice, Amar fee order

Analyst Ratings Changes

A number of equities research analysts recently weighed in on JPM shares. Royal Bank Of Canada raised their price target on shares of JPMorgan Chase & Co. from $330.00 to $370.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Wells Fargo & Company upped their price objective on shares of JPMorgan Chase & Co. from $375.00 to $390.00 and gave the company an "overweight" rating in a research report on Friday, August 14th. Evercore restated an "outperform" rating and set a $360.00 target price on shares of JPMorgan Chase & Co. in a research note on Monday, July 6th. Truist Financial boosted their price target on JPMorgan Chase & Co. from $344.00 to $352.00 and gave the stock a "hold" rating in a research note on Wednesday, July 15th. Finally, Morgan Stanley reissued a "positive" rating and issued a $370.00 price target on shares of JPMorgan Chase & Co. in a report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, JPMorgan Chase & Co. presently has a consensus rating of "Moderate Buy" and an average target price of $359.96.

JPMorgan Chase & Co. Price Performance

Shares of NYSE JPM opened at $358.21 on Monday. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 1.30. The company has a market capitalization of $952.19 billion, a price-to-earnings ratio of 15.35, a price-to-earnings-growth ratio of 1.48 and a beta of 0.98. JPMorgan Chase & Co. has a twelve month low of $279.10 and a twelve month high of $366.50. The business has a 50 day simple moving average of $349.89 and a 200-day simple moving average of $320.56.

JPMorgan Chase & Co. (NYSE:JPM - Get Free Report) last announced its quarterly earnings data on Tuesday, July 14th. The financial services provider reported $6.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.59 by $0.55. The firm had revenue of $58.02 billion for the quarter, compared to analysts' expectations of $50.72 billion. JPMorgan Chase & Co. had a return on equity of 18.23% and a net margin of 21.86%.The firm's revenue for the quarter was up 27.7% on a year-over-year basis. During the same period last year, the business posted $4.96 earnings per share. As a group, equities research analysts expect that JPMorgan Chase & Co. will post 24.28 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Robin Leopold sold 2,500 shares of JPMorgan Chase & Co. stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $361.41, for a total value of $903,525.00. Following the completion of the transaction, the insider directly owned 73,547 shares of the company's stock, valued at approximately $26,580,621.27. The trade was a 3.29% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 stock in a transaction dated Monday, June 22nd. The stock was 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 in the company, valued at approximately $13,547,031.53. This trade represents a 11.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.41% of the stock is currently owned by corporate insiders.

About JPMorgan Chase & Co.

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.

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