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. Not only is that a big swing, but it increased their holding size by 13%, which is definitely great to see.
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. We do like to see buying, but this purchase was made at well below the current price of US$138. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
JPMorgan Chase insiders may have bought shares in the last year, but they didn’t sell any. 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.
Insider Ownership
Many investors like to check how much of a company is owned by 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$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 Does This Data Suggest About JPMorgan Chase Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest JPMorgan Chase insiders are well aligned, and quite possibly think the share price is too low. That’s what I like to see! 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.
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.
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