JP Morgan Chase & Co Analysis
JPM shares fell from their all time highs this week after comments from their CEO left investors uneasy. Jamie Dimon, who has served as the bank’s CEO for two decades, stated that he is ruling out share buybacks at this time because the stock is too expensive. Dimon has sold more than $180 million worth of JPM shares in 2024, $33M just weeks before his comments about the stock being expensive. Other executives at the company proceeded to sell thousands worth of shares following his selling. Jamie Dimon is respected on Wall Street and is viewed as an influential leader; he’s now made several comments in regard to troubles in the economy and the stock market, which have spooked some investors.
Looking at JPM’s fundamentals without outside influence, we see that they are growing at a healthy rate, but their price to earnings ratio of 12 is significantly higher than the industry average of 7. So JPM is trading at nearly double the valuation of other financial institutions in comparison to profits, which could signal a correction soon.
Technical Analysis:
Chart done on hourly timeframe. The stock broke below its 2024 trend line after gapping down on its last earnings. Since then it has managed to bounce back to retest the trend line break, but got rejected at the retest. Probabilities are high that they below 197.00 in the coming weeks and towards the 188.00 support next.