Yahoo Finance JPMorgan Chase & Co.'s (NYSE:JPM) recent US$14b market cap decline means a loss of US$30k for insiders who bought this year
Insiders who acquired US$100k worth of JPMorgan Chase & Co.'s (NYSE:JPM) stock at an average price of US$150 in the past 12 months may be dismayed by the recent 4.3% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$70k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for JPMorgan Chase
JPMorgan Chase Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Mellody Hobson bought US$100k worth of shares at a price of US$150 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$105). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Mellody Hobson was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. JPMorgan Chase insiders own about US$2.5b worth of shares (which is 0.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At JPMorgan Chase Tell Us?
It doesn't really mean much that no insider has traded JPMorgan Chase shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, JPMorgan Chase insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in JPMorgan Chase, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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