J.P. Morgan Chase & Co Stock Holding Firm
J.P. Morgan Chase & Company (JPM) stock closed on Friday, 16 December 2016 at $84.94 per share. In the pre-market trading session on Monday, 19 December 2016 the stock was trading 0.20% lower, down $0.17, at $84.77. The stock has a market capitalization of $303.90 billion, and a price/earnings ratio of 13.19. On Friday, JPM the firm issued dividends for outstanding shares for Series R and Series S stock. For the preferred stock series, JPM declared dividends of 6% fixed-to-floating rate for non-cumulative preferred stock Series R at $300 distribution per preferred share. The distribution per depository share was $30. JPM also declared preferred stock series payments valued at 6.75% fixed-to-floating rate for noncumulative preferred stock Series S. The distribution per preferred share was $337.50, and the distribution per depository share amounted to $33.75. The payment will be made on February 1, 2017 for all stockholders as at Tuesday, 3 January 2017.
How do Analysts Rate JPM Stock?
The recent Fed rate hike of 25-basis points now places the federal funds rate at 0.50% to 0.75%. This is good news for banking and financial stocks like JPM. Over the past 4 quarters, JPM has consistently outperformed consensus forecasts. The earning surprise history is illustrated in the above graphic. The company’s earnings surprise history has consistently improved in 2016. Consider that a 7.14% earnings surprise was generated for the fiscal quarter ending in March, an 8.39% earnings surprise was generated in June 2016, and a 12.86% earnings surprise was generated for the quarter ending in September 2016.
During the most recent quarter (Q3), JPMorgan Chase & Co reported an increase of 17% in the number of active mobile customers at 26 million, and an increase in credit card sales of 10%. The company has also generated a CIB return on equity of 17% with total revenues rising 16% to $9.5 billion. Markets revenue was reportedly up 33%. In terms of CB return on equity, JPMorgan Chase & Co was up 18% with net income rising 50% to $778 million. The average loan balances increased by 14%. When AM was measured, the return on equity was 24%. The record average loan balances increased by 5%. During Q3 2016, shareholders received a total of $3.8 billion, of which $2.1 billion was net repurchases and common dividends valued at $0.48 per share. For the year to date, JPMorgan Chase & Co has raised capital and credit valued at $1.7 trillion.
Consensus Forecast for JPMorgan Chase & Company
Between September and November 2016, the number of analysts opting for a buy rating on the stock has dropped, and the number of analysts pushing for a hold rating has increased. Nonetheless, the consensus remains bullish. On a scale of 1.0 (strong buy) to 5.0 (sell), JPM stock is rated at 2.3. The recent upgrades and downgrades history of the stock is bearish with Robert W. Baird downgrading the stock from an outperform rating to a neutral rating on 9 November, and Buckingham Research downgrading the stock from a buy to a neutral rating in October. For the current quarter, the 27 analysts polled by Thomson Reuters have given an average estimate of $1.42 EPS with a low of $1.30 and a high of $1.54. One year ago, the consensus EPS for Q3 was $1.32.
Of all the factors impacting stocks like JPM, the recent Fed rate hike is the most significant. Clearly the US economy is growing at a healthy pace, despite the occasional lukewarm data releases. Trump’s inauguration in January and his fiscal policy plans are likely to help drive the US economy alongside at least 2 rate hikes in 2017.
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