JPMorgan Chase & Co. (NYSE:JPM) Shares Down 4.2% - Here's Why

Key Points

• JPMorgan shares fell 4.2% to $337.48 on Thursday, with trading volume 41% above its daily average.
• Potential pressure includes a reported Senate Democratic inquiry into the bank’s past relationship with Jeffrey Epstein, alongside broader concerns that increased congressional oversight could hinder bank deregulation.
• The bank’s latest quarterly results missed analyst estimates for both earnings and revenue, although revenue rose 8.1% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target of $368.33.

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

Key Stories Impacting JPMorgan Chase & Co.

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?

Analyst Ratings Changes

A number of brokerages have weighed in on JPM. Weiss Ratings downgraded shares of JPMorgan Chase & Co. from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Friday, October 23rd. The Goldman Sachs Group reissued an "outperform" rating and issued a $392.00 price target on shares of JPMorgan Chase & Co. in a research report on Tuesday, October 13th. Deutsche Bank Aktiengesellschaft upgraded JPMorgan Chase & Co. from a "hold" rating to a "buy" rating and set a $375.00 price target on the stock in a research note on Wednesday, July 22nd. UBS Group raised their price objective on JPMorgan Chase & Co. from $395.00 to $400.00 and gave the company a "buy" rating in a research report on Monday. Finally, Wells Fargo & Company lifted their price objective on JPMorgan Chase & Co. from $375.00 to $390.00 and gave the company an "overweight" rating in a research note on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and thirteen have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $368.33.

JPMorgan Chase & Co. Price Performance

The firm has a 50-day moving average of $342.66 and a 200-day moving average of $323.49. 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 P/E ratio of 14.16, a PEG ratio of 1.33 and a beta of 1.03.

JPMorgan Chase & Co. (NYSE:JPM - Get Free Report) last released its quarterly earnings data on Tuesday, October 13th. The financial services provider reported $5.75 EPS for the quarter, missing the consensus estimate of $5.94 by ($0.19). The business had revenue of $50.17 billion during the quarter, compared to the consensus estimate of $51.23 billion. JPMorgan Chase & Co. had a return on equity of 18.48% and a net margin of 21.85%. JPMorgan Chase & Co.'s quarterly revenue was up 8.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $5.07 earnings per share. As a group, analysts predict that JPMorgan Chase & Co. will post 23.95 EPS for the current year.

JPMorgan Chase & Co. Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Saturday, October 31st. Stockholders of record on Tuesday, October 6th were issued a dividend of $1.65 per share. The ex-dividend date of this dividend was Tuesday, October 6th. This is a positive change from JPMorgan Chase & Co.'s previous quarterly dividend of $1.50. This represents a $6.60 annualized dividend and a dividend yield of 2.0%. JPMorgan Chase & Co.'s dividend payout ratio is presently 27.68%.

Insiders Place Their Bets

In related news, insider Robin Leopold sold 2,500 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $352.81, for a total transaction of $882,025.00. Following 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 ownership of the stock. The sale 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 currently owned by company insiders.

Institutional Investors Weigh In On JPMorgan Chase & Co.

A number of large investors have recently added to or reduced their stakes in the stock. Silver Grove Financial Group Inc. increased its holdings in JPMorgan Chase & Co. by 11.1% in the 3rd quarter. Silver Grove Financial Group Inc. now owns 4,461 shares of the financial services provider's stock worth $1,476,000 after buying an additional 447 shares during the period. Davis Investment Partners LLC grew its position in JPMorgan Chase & Co. by 2.2% during the 3rd quarter. Davis Investment Partners LLC now owns 4,880 shares of the financial services provider's stock worth $1,614,000 after purchasing an additional 105 shares during the period. Turn8 Private Wealth Inc. raised its stake in shares of JPMorgan Chase & Co. by 1.3% during the 3rd quarter. Turn8 Private Wealth Inc. now owns 13,955 shares of the financial services provider's stock valued at $4,617,000 after buying an additional 180 shares during the last quarter. Northbridge Financial Group LLC lifted its holdings in shares of JPMorgan Chase & Co. by 4.8% in the 3rd quarter. Northbridge Financial Group LLC now owns 3,870 shares of the financial services provider's stock valued at $1,282,000 after buying an additional 178 shares during the period. Finally, Brooklyn FI LLC boosted its stake in shares of JPMorgan Chase & Co. by 763.7% in the third quarter. Brooklyn FI LLC now owns 1,926 shares of the financial services provider's stock worth $678,000 after buying an additional 1,703 shares during the last quarter. Institutional investors own 71.55% of the company's stock.

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, 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.

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