3. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 107
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational investment bank and financial services holding company headquartered in San Francisco, California. Israel Englander’s Millennium Management owned 1.39 million shares of JPMorgan Chase & Co. (NYSE:JPM) in the fourth quarter of 2021, worth roughly $221 million, representing 0.11% of the total 13F holdings.
On April 13, JPMorgan Chase & Co. (NYSE:JPM) reported financial results for the March quarter. The company posted earnings per shares of $2.63, falling short of analysts’ estimates by $0.08. The $30.72 billion revenue outperformed market consensus by $318.51 million.
JPMorgan Chase & Co. (NYSE:JPM) declared on March 15 a $1.00 per share quarterly dividend, in line with previous. The dividend is payable on April 30, for shareholders of record on April 6. The company delivers a dividend yield of 3.04% as of April 20.
Argus analyst Stephen Biggar on April 14 reiterated a Buy rating on JPMorgan Chase & Co. (NYSE:JPM) but lowered the firm’s price target on the shares to $155 from $177. The company’s Q1 results were impacted by a troublesome investment banking environment and a buildup of loss reserves that management attributed to inflation, the Ukraine war, and Russia counterparty risk, the analyst told investors in a research note. However, JPMorgan Chase & Co. (NYSE:JPM)’s trading business was strong and there were increased lending revenues, which benefited from 5% average loan growth.
According to Insider Monkey’s Q4 data, 107 hedge funds placed long calls on JPMorgan Chase & Co. (NYSE:JPM), up from 101 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 7.4 million shares worth $1.17 billion.
Here is what Ariel Investments has to say about JPMorgan Chase & Co. (NYSE:JPM) in its Q4 2021 investor letter:
“In our view, inflation will not just be a 2021 phenomenon. Inflationary expectations are only now working themselves into the labor market with historically low unemployment, resurgent labor unions, and higher wages. These labor cost pressures are only starting to show up in the Consumer Price Index. The most recent Producer Price Index showed a +9% year over year increase, the highest since it was created in 2010. Higher input prices generally lead to rising consumer prices.
“In our view, inflation will not just be a 2021 phenomenon.”
Consumer balance sheets are in excellent shape with lower unemployment and banked stimulus checks. A recent analysis from JP Morgan Chase (JPM) showed average checking accounts have 50% higher balances than pre-Covid. The U.S. money supply as measured by M2 (a calculation that includes cash, checking accounts, and “near cash” such as money market securities) is up +38% versus year-end 2019. Higher consumer cash holdings and higher money supply mean more spending and demand for goods. Some emphasize supply issues to explain current inflation. Going forward, we see very strong demand as well, too much money chasing too few goods.”
