Vega Investment Solutions Reduces Stock Holdings in JPMorgan Chase & Co. $JPM

Key Points

• Vega Investment Solutions cut its JPMorgan stake by 51.7% in the second quarter, selling 7,057 shares and retaining 6,597 shares valued at approximately $2.16 million. Institutional investors collectively own 71.55% of the bank’s stock.
• JPMorgan reported strong quarterly results, with earnings of $6.14 per share and revenue of $58.02 billion, both exceeding analyst expectations; revenue increased 27.7% year over year.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $359.96, while JPMorgan raised its quarterly dividend from $1.50 to $1.65 per share, a 1.9% indicated yield.

Vega Investment Solutions lowered its stake in JPMorgan Chase & Co. (NYSE:JPM - Free Report) by 51.7% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 6,597 shares of the financial services provider's stock after selling 7,057 shares during the period. Vega Investment Solutions' holdings in JPMorgan Chase & Co. were worth $2,159,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. McDonough Capital Management Inc raised its holdings in JPMorgan Chase & Co. by 6.5% in the 2nd quarter. McDonough Capital Management Inc now owns 5,912 shares of the financial services provider's stock worth $1,935,000 after purchasing an additional 360 shares in the last quarter. Stillwater Private Wealth LLC lifted its position in shares of JPMorgan Chase & Co. by 4.2% in the 2nd quarter. Stillwater Private Wealth LLC now owns 1,754 shares of the financial services provider's stock worth $574,000 after purchasing an additional 70 shares during the period. Twin Peaks Wealth Advisors LLC boosted its stake in shares of JPMorgan Chase & Co. by 8.3% during the 2nd quarter. Twin Peaks Wealth Advisors LLC now owns 2,664 shares of the financial services provider's stock valued at $872,000 after purchasing an additional 204 shares in the last quarter. Cullen Capital Management LLC boosted its stake in shares of JPMorgan Chase & Co. by 0.3% during the 2nd quarter. Cullen Capital Management LLC now owns 810,780 shares of the financial services provider's stock valued at $265,393,000 after purchasing an additional 2,132 shares in the last quarter. Finally, Whalen Wealth Management Inc. boosted its stake in shares of JPMorgan Chase & Co. by 33.0% during the 2nd quarter. Whalen Wealth Management Inc. now owns 10,708 shares of the financial services provider's stock valued at $3,505,000 after purchasing an additional 2,659 shares in the last quarter. 71.55% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on JPM shares. Keefe, Bruyette & Woods increased their price target on shares of JPMorgan Chase & Co. from $370.00 to $384.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 15th. Truist Financial lifted their price objective on JPMorgan Chase & Co. from $344.00 to $352.00 and gave the company a "hold" rating in a research report on Wednesday, July 15th. Evercore reaffirmed an "outperform" rating and set a $360.00 price objective on shares of JPMorgan Chase & Co. in a research report on Monday, July 6th. Jefferies Financial Group set a $350.00 target price on JPMorgan Chase & Co. in a report on Tuesday, July 14th. Finally, Morgan Stanley reissued a "positive" rating and issued a $370.00 target price on shares of JPMorgan Chase & Co. in a research report on Wednesday, July 15th. Sixteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $359.96.

Key Stories Impacting JPMorgan Chase & Co.

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

Insider Activity at JPMorgan Chase & Co.

In related news, General Counsel Stacey Friedman sold 5,467 shares of the firm's stock in a transaction that occurred on 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 completion of the transaction, the general counsel owned 40,961 shares of the company's stock, valued at $13,547,031.53. This trade represents a 11.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robin Leopold sold 2,500 shares of JPMorgan Chase & Co. stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $352.81, for a total value of $882,025.00. Following the transaction, the insider owned 71,047 shares of the company's stock, valued at $25,066,092.07. The trade was a 3.40% decrease in their position. 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 10,467 shares of company stock worth $3,593,651 in the last 90 days. 0.41% of the stock is currently owned by company insiders.

JPMorgan Chase & Co. Trading Down 0.1%

NYSE:JPM opened at $348.92 on Friday. The firm has a market capitalization of $927.49 billion, a P/E ratio of 14.95, a PEG ratio of 1.44 and a beta of 0.98. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.85 and a quick ratio of 0.85. JPMorgan Chase & Co. has a one year low of $279.10 and a one year high of $366.50. The company's 50-day simple moving average is $353.73 and its 200 day simple moving average is $323.85.

JPMorgan Chase & Co. (NYSE:JPM - Get Free Report) last announced its earnings results on Tuesday, July 14th. The financial services provider reported $6.14 earnings per share for the quarter, beating analysts' consensus estimates of $5.59 by $0.55. JPMorgan Chase & Co. had a net margin of 21.86% and a return on equity of 18.23%. The business had revenue of $58.02 billion during the quarter, compared to the consensus estimate of $50.72 billion. During the same quarter last year, the firm earned $4.96 earnings per share. The business's revenue for the quarter was up 27.7% on a year-over-year basis. As a group, analysts forecast that JPMorgan Chase & Co. will post 24.3 EPS for the current fiscal year.

JPMorgan Chase & Co. Increases Dividend

The business 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 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Tuesday, October 6th. This is an increase from JPMorgan Chase & Co.'s previous quarterly dividend of $1.50. JPMorgan Chase & Co.'s dividend payout ratio (DPR) is currently 25.71%.

JPMorgan Chase & Co. 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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