Traders in the options market have shown a cautious approach towards JPMorgan Chase & Co. (JPM, Financial), as its stock fell by $1.57, reaching approximately $263.71. The overall trading activity was relatively quiet, with 28,000 contracts changing hands. Notably, puts slightly outpaced calls, resulting in a put/call ratio of 1.01, which contrasts with the typical level of around 0.79.
The implied volatility (IV30) saw a slight increase of 0.5 points, coming in at 22.08, which remains under the 52-week median. This signals an anticipated daily price movement of $3.67. Additionally, the flattening of the put-call skew indicates a slightly optimistic sentiment among traders, despite the overall bearish outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for JPMorgan Chase & Co (JPM, Financial) is $269.74 with a high estimate of $330.00 and a low estimate of $196.34. The average target implies an upside of 2.40% from the current price of $263.43. More detailed estimate data can be found on the JPMorgan Chase & Co (JPM) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, JPMorgan Chase & Co's (JPM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for JPMorgan Chase & Co (JPM, Financial) in one year is $211.40, suggesting a downside of 19.75% from the current price of $263.425. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the JPMorgan Chase & Co (JPM) Summary page.
JPM Key Business Developments
Release Date: April 11, 2025
- Net Income: $14.6 billion.
- Earnings Per Share (EPS): $5.07.
- Revenue: $46 billion, up 8% year on year.
- Return on Tangible Common Equity (ROTC): 21%.
- Expenses: $23.6 billion, up 4% year on year.
- Credit Costs: $3.3 billion, with net charge-offs of $2.3 billion.
- Total Allowance for Credit Losses: $27.6 billion.
- Common Equity Tier 1 (CET1) Ratio: 15.4%.
- Capital Distributed to Shareholders: $11 billion.
- Consumer & Community Banking (CCB) Revenue: $18.3 billion, up 4% year on year.
- Commercial & Investment Bank (CIB) Revenue: $19.7 billion, up 12% year on year.
- Asset & Wealth Management (AWM) Revenue: $5.7 billion, up 12% year on year.
- Assets Under Management (AUM): $4.1 trillion, up 15% year on year.
- Client Assets: $6 trillion, up 15% year on year.
- Corporate Revenue: $2.3 billion, up $102 million year on year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- JPMorgan Chase & Co (JPM, Financial) reported a strong net income of $14.6 billion, with an EPS of $5.07, reflecting robust financial performance.
- Revenue increased by 8% year-on-year to $46 billion, driven by higher asset management fees and investment banking fees.
- The firm maintained a high CET1 ratio of 15.4%, demonstrating strong capital adequacy.
- Consumer and small business segments remain financially healthy, with spending and credit utilization in line with expectations.
- The asset and wealth management division reported a 12% increase in revenue, driven by strong net inflows and higher market levels.
Negative Points
- Net interest income excluding markets was down by $430 million or 2%, impacted by lower rates and deposit margin compression.
- Credit costs increased to $3.3 billion, with net charge-offs of $2.3 billion, indicating rising credit risk.
- Expenses rose by 4% to $23.6 billion, largely due to higher compensation and legal expenses.
- The investment banking outlook remains cautious due to elevated market uncertainty and client hesitancy.
- Home lending originations dropped 42% year-on-year, reflecting challenges in the housing market.
