We recently published a list of Top 10 Insider Sales Last Month. In this article, we are going to take a look at where JPMorgan Chase & Co. (NYSE:JPM) stands against other top insider sales last month.
The Bureau of Labor Statistics reported Wednesday that February prices for food and services haven’t gone up as much as many experts were expecting. The consumer price index increased by a seasonally adjusted 0.2% for the month, meaning that the annual inflation rate grew 2.8%, slightly lower than economists projected.
Kay Haigh, global co-head of fixed income and liquidity solutions at Goldman Sachs Asset Management said the report reveals “further signs of progress on underlying inflation, with the pace of price increases moderating after January’s strong release,” writes CBS News.
After the “soft inflation” report, the broader market index gained 0.49%, the NASDAQ Composite rose 1.22%, but the blue-chip companies declined 0.2% yesterday, or 3% this week. Despite the decline, and NASDAQ entering a correction, some analysts see it as a normal course for the stocks after strong gains over the past two years, writes CNBC News.
“We’re not surprised the market’s pulled down. Obviously, U.S. equity markets have been exceptionally strong over the last two years,” said Dave Grecsek, managing director of investment strategy and research at Aspiriant Wealth Management. “It’s right to expect a correction. But I think once we get through this — we’re in the very early events of these key fiscal policy changes — there’s better news to come.”
As the market responds to evolving tariff shifts and other political and economic developments, it might be useful to review recent insider trading activity. Why? Company executives have valuable insights into their organizations, and their moves can sometimes help investors obtain more useful data. For instance, when a CEO or CFO buys company stock, it can indicate a positive outlook on the business’s future.
However, it is important to highlight that insider selling isn’t necessarily a sign of a lack of confidence, as it may stem from personal financial considerations or efforts to diversify portfolios. Executives frequently execute these transactions through pre-established plans (such as 10b5-1 plans), which are designed to avoid any appearance of improper timing.
While insider activity can offer useful data, it’s important to consider it in the broader context of other factors, such as the company’s financial performance, market trends, and industry developments.
Our Methodology
Using Insider Monkey’s insider trading screener, we’ve identified stocks where at least three insiders sold shares in the past month. From this group, we’ve highlighted the 10 stocks with the highest insider sales values.
Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
For each stock, we provide details on the total value of insider sales and the company’s current market capitalization.
A group of business people discussing plans around a boardroom table adorned with a financial services company logo.
JPMorgan Chase & Co. (NYSE:JPM)
Total value of insider sales in February: $250,478,121.36
Market capitalization: $637.23 billion
A well-known name in the finance world, JPMorgan Chase & Co. (NYSE:JPM) has millions of customers across 100 global markets. Based in New York, the company is concentrated on investment banking and financial services for all types of customers in the commercial and business sectors. As of December 31, JP Morgan Chase & Co. had $4.0 trillion in assets and $345 billion in stockholders’ equity.
In a recent development, the company announced it would buy back all 300,000 of its outstanding shares of Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series HH. These shares are represented by 3,000,000 depositary shares, with each depositary share representing one-tenth of a share of Series HH Preferred Stock. The company will pay $10,000 for each Series HH Preferred Stock share, which is equivalent to $1,000 for each depositary share.
In February, nine insiders sold a total of $250.48 million worth of shares, at an average price of $272.13 per share. Currently, the stock trades at $225.67 per share, having declined 5.86% since the beginning of the year. Over the past 12 months, JPMorgan Chase & Co. (NYSE:JPM) returned 17.92% to its investors.
Nineteen analysts have given a “Moderate Buy” rating on JPMorgan Chase & Co. stock with a price target of $252.89, according to MarketBeat.
Overall, JPM ranks 8th on our list of the top insider sales last month. While we acknowledge the potential of JPM, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JPM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
