Today is a tremendous turnaround for several large banking stocks including JPMorgan Chase & Co. (NYSE:JPM), Regions Financial (NYSE:RF), Wells Fargo & Company (NYSE:WFC), and Bank of America Corporation (NYSE:BAC). The cause of today’s surprising uptick? Simply the realization that these stocks are trading at lows unheard of in quite some time. They are trading at prices which are representative of a severe depression, one that we certainly are not currently in. Over the past couple weeks, we’ve seen banking stocks get beaten down for reasons such as the fall in the price of oil, and the increased fed rate. However, the majority of these banks have very little oil related holdings, at least much less than how the market seems to be holding them to.
On the day, JPMorgan Chase & Co. (NYSE:JPM) is trading up 8.37%, while Regions Financial (NYSE:RF) is up 7.63%, Wells Fargo (NYSE:WFC) is up 4.62%, and Bank of America (NYSE:BAC) is trading up 7.40%. This is all heading into a long 3-day weekend, ahead of what should be an interesting rest of the month, not only for banking stocks but for the market at a whole. Oil prices may have finally reached a bottom, while the federal reserve will continue to monitor the market and try and make the right decisions. While some fear we may be in a recession, others believe we are far from it.
JPM is up 8.37% or $4.44 following the news, hitting $57.51 per share. About 28.58 million shares traded hands or up 17.81% from the average. JPM has declined 19.72% since July 9, 2015 and is currently downtrending. It has underperformed the S&P500 by 10.25%.
From a total of 16 analysts covering JPMorgan Chase & Co (NYSE:JPM) stock, 14 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 88% of the ratings are positive. The highest target price is $79 while the lowest target price is $63. The mean of all analyst targets is $72.87 which is 26.71% above today’s ($57.51) stock price. JPMorgan Chase & Co was the topic of 31 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. UBS upgraded shares on February 5 to a “Buy” rating. Jefferies maintained shares with a”Buy” rating and a $71 target share price in their report from an October 7. Atlantic Securities upgraded JPM stock in a recent report from January 18 to a “Overweight” rating. Citigroup maintained the rating on October 5. Citigroup has a “Buy” rating and a $70 price target on shares. Finally, Keefe Bruyette & Woods maintained the stock with a “Outperform” rating in a report they issued on an October 14.
The institutional sentiment decreased to 1.1 in Q2 2015. It’s down 0.04, from 1.14 in 2015Q2. The ratio is negative, as 83 funds sold all their JPMorgan Chase & Co. shares they owned while 666 reduced their positions. 89 funds bought stakes while 734 increased their total positions. Institutions now own 2.71 billion shares which is 0.70% less than the previous share count of 2.73 billion in 2015Q2.
Yale University holds 34.82% of its total portfolio in JPMorgan Chase & Co., equating to 3.41 million shares. Western Asset Management Co owns 320,000 shares representing 17.13% of their total US portfolio. Moreover, Tegean Capital Management Llc has 13.66% of their total portfolio invested in the company, equating to 300,000 shares. The United Kingdom-based Lloyds Banking Group Plc has a total of 13.04% of their portfolio invested in the stock. Prosiris Capital Management Lp, a New York-based fund reported 351,721 shares owned.
Since April 15, 2015, the stock had 0 buys, and 3 insider sales for a total of $925,502 in net activity. O’donovan Mark sold 1,144 shares worth $72,846. Jackson Laban sold 400 shares worth $415,124. Cutler Stephen M sold 7,217 shares worth $437,532. Bacon Ashley sold 32,882 shares worth $2.27M. The insider Erdoes Mary E. sold 13,022 shares worth $899,426.
JPMorgan Chase & Co. is a financial holding company. The company has a market cap of $202.36 billion. The Firm is engaged in investment banking, financial services for clients and small businesses, commercial banking, financial transaction processing and asset management. It has 9.58 P/E ratio. JPMorgan Chase’s activities are organized into four business divisions.