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Insider Buying: The JPMorgan Chase & Co. (NYSE:JPM) Just Bought US$2.0m Worth Of Shares

Simply Wall St

JPMorgan Chase & Co. (NYSE:JPM) shareholders (or potential shareholders) will be happy to see that insider Mellody Hobson recently bought a whopping US$2.0m worth of stock, at a price of US$136. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 13%.

Check out our latest analysis for JPMorgan Chase

JPMorgan Chase Insider Transactions Over The Last Year

Notably, that recent purchase by insider Mellody Hobson was not the only time they bought JPMorgan Chase shares this year. Earlier in the year, they paid US$110 per share in a US$2.0m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$138. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While JPMorgan Chase insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:JPM Recent Insider Trading, January 19th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of JPMorgan Chase

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that JPMorgan Chase insiders own 0.7% of the company, worth about US$3.2b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The JPMorgan Chase Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about JPMorgan Chase. Nice! 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 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.