Those following along with JPMorgan Chase & Co. (NYSE:JPM) will no doubt be intrigued by the recent purchase of shares by insider Mellody Hobson, who spent a stonking US$2.0m on stock at an average price of US$125. Not only is that a big swing, but it increased their holding size by 16%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At JPMorgan Chase
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. That means that an insider was happy to buy shares at around the current price of US$126. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
While JPMorgan Chase insiders bought shares last year, they didn't sell. You can see a visual depiction of insider transactions (by 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!
JPMorgan Chase is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does JPMorgan Chase Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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$2.8b. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about JPMorgan Chase. Looks promising! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: JPMorgan Chase may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.