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- 1 JP Morgan Chase & Co. stock price slumped 3.60% on Friday and closed at $135.69.
- 2 JP Morgan’s CEO Jamie Dimon plans to sell approximately 12% of their stake in the company.
- 3 JP Morgan company recently reported quarterly earnings on Friday, 13th October.
JP Morgan stock price slumped nearly 3.60% on Friday and closed at $135.69. The price fall has been said to be the reaction to the news that sailed in the US market yesterday. The news was directly related to the CEO of JP Morgan Company’s CEO Jamie Dimon.
Moreover, the stock had already turned bearish in the short term after the release of quarterly results. The price fell from a high of $150 to get the support of a 200-day EMA near the $140 level. But the news about the CEO’s plan to sell shares added fuel to the stock price, dragging it down to 3.60% at the time of closing on Friday.
JP Morgan’s CEO Jamie Dimon Plans To Sell Shares
The recent filing has confirmed that JP Morgan Company’s CEO Jamie Dimon will sell some of his stake in the company. The largest US Bank’s CEO plans to sell shares dragged the stock price down by over 3.60%. This is happening for the first time in the past 18 years as per the US analysts.
As per the filing, the chairman and chief executive of JP Morgan Chase & Co., and his family have planned to sell approximately 12% of their stake in the bank. The sale is set to begin in 2024. Dimon and his family intend to sell 1 Million shares out of their total 8.6 Million shares.
This sale of 1 Million shares, which is subject to the terms of a stock trading plan, signifies around 9% of Dimon’s total ownership if fully vested. The estimated worth of these shares is around $137 Million at the current market price.
The billionaire who is one of the most prominent voices in corporate America, steered the JP Morgan company through the 2008 financial crisis. He also played a very crucial role in the rescue of the First Republic Bank in the 1st quarter of the current financial year.
The reason behind the selling of stakes in the largest US Bank was for financial diversification and tax-planning purposes as per the billionaire Jamie Dimon. He further added that he continues to believe that the company’s prospects are very strong.
JP Morgan Businesses and Revenues Breakdown
JP Morgan Chase is a financial holding company engaging in providing financial and investment banking services. The company offers a range of investment banking products and services in the capital markets. The company operates in various segments like consumer and community banking, corporate and investment banking, asset and wealth management, etc.
The largest US Bank holds a market cap of over $394.32 Billion. The company provides a dividend yield of 3.10% to the investors. The PE ratio is at 11.40 and the PS ratio is 2.53. All in all, the company holds a strong fundamental and has been one of the favorite stocks for long-term Investors.
JP Morgan company generates the largest portion of its revenue in the consumer and community banking segment. The segment generates $55.01 Billion, about 42.75% of the total revenue. The second largest contributor to JP Morgan’s revenue is the corporate and investment bank segment which collects around 37.22%, which is almost 47.89 Billion of the revenue generated.
The asset and wealth management segment generates 17.74 Billion, around 13.79% of the total revenues. Additionally, the commercial banking segment generates 11.53 Billion, thus, contributing around 8.96%.
JP Morgan Quarterly Earning Analysis
JP Morgan posted its third quarterly results on Friday, 13th October. The revenues were quite surprising in both revenues and earnings. However, the stock price turned around and reversed after the results.
The JPM stock turned volatile and declined continuously after the results. The stock price is down over 8.5% since the earnings were released. The company posted a revenue of $39.874 Billion which was slightly better than the estimates.
The earnings however came out at $4.33 Billion with a surprise of over 9.66% against the Wall Street estimates. The revenues and earnings both were much better than the estimates but the stock price experienced a profit booking and slipped lower.
JP Morgan Stock Price Reversed After Quarterly Earnings
The price trend analysis illustrates that the JPM stock price had been in a bullish trend and persisted in an upward trajectory. The stock price surged higher taking support from the key EMAs.
The stock price surged from a low of $100 to a high of $159 in the period. Thereafter, the price experienced profit booking and fell below the 50-day EMA. However, the stock price has turned bearish after the recent quarterly results. The price has made a breakdown from a two-month consolidation and 200-day EMA.
JP Morgan Stock Forecast For Upcoming Sessions
The short-term outlook for the JP Morgan price is on the bearish side. The stock price has turned bearish after the breakdown of the 200-day EMA and some recent news has dragged the price lower.
The stock may continue to slide down with some small pullbacks in the short term. The price has immediate support of $134 and $130 on the lower side which may add some buying volume and try to halt the downward momentum.
Conclusion
JP Morgan stock price slumped nearly 3.60% on Friday after the news that CEO Jamie Dimon and his family planned to sell 1 Million shares of the company. The price trend analysis shows that the JPM stock price had been in a bullish trend but turned bearish after the recent quarterly results and the news about the selling of shares. The short-term outlook for the JP Morgan price is on the bearish side and the stock may continue to slide down with some minor pullbacks.
Technical Levels
- Support levels: $134.01 and $130.21
- Resistance levels: $141.88 and $149.91
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
