Mellody Hobson Is The Independent Director of JPMorgan Chase & Co. (NYSE:JPM) And Just Spent US$100k On Shares
Investors who take an interest in JPMorgan Chase & Co. (NYSE:JPM) should definitely note that the Independent Director, Mellody Hobson, recently paid US$150 per share to buy US$100k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for JPMorgan Chase
The Last 12 Months Of Insider Transactions At JPMorgan Chase
In fact, the recent purchase by Independent Director Mellody Hobson was not their only acquisition of JPMorgan Chase shares this year. Earlier in the year, they paid US$153 per share in a US$101k purchase. That means that even when the share price was higher than US$147 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Mellody Hobson was the only individual insider to buy shares in the last twelve months.
Mellody Hobson bought a total of 1.33k shares over the year at an average price of US$151. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Does JPMorgan Chase Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. JPMorgan Chase insiders own about US$3.5b worth of shares (which is 0.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At JPMorgan Chase Tell Us?
It's certainly positive 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! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for JPMorgan Chase that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
