Have Insiders Sold JPMorgan Chase Shares Recently?
Some JPMorgan Chase & Co. (NYSE:JPM) shareholders may be a little concerned to see that the Independent Director, Linda Bammann, recently sold a substantial US$2.8m worth of stock at a price of US$298 per share. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.
JPMorgan Chase Insider Transactions Over The Last Year
The Chairman & CEO, James Dimon, made the biggest insider sale in the last 12 months. That single transaction was for US$234m worth of shares at a price of US$270 each. That means that even when the share price was below the current price of US$300, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 12% of James Dimon's holding.
In the last year JPMorgan Chase insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for JPMorgan Chase
I will like JPMorgan Chase better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. JPMorgan Chase insiders own 0.3% of the company, currently worth about US$2.9b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About JPMorgan Chase Insiders?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, JPMorgan Chase makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing JPMorgan Chase. At Simply Wall St, we found 1 warning sign for JPMorgan Chase that deserve your attention before buying any shares.
Of course JPMorgan Chase may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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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.