That plan was introduced earlier this week. The 67-year-old Dimon, atop the most important US financial institution for the reason that finish of 2005, has quipped for years that he plans to stay JPMorgan’s CEO for 5 extra years.
“On condition that that is Mr. Dimon’s first such sale since becoming a member of the corporate and that he’s such a vital a part of the story, we’re sure the announcement will draw consideration,” Piper Sandler Cos. analysts R. Scott Siefers and Frank Williams, who’ve an obese score on JPMorgan shares, stated in a be aware to purchasers.
The announcement might trigger some near-term weak spot within the inventory, they stated. Nonetheless, “diversification positive appears prudent, and we discover no fault with the choice.”
JPMorgan shares are up about 0.1% this yr, outperforming the S&P 500 Financials Index, which has dropped roughly 6.5%.
Wells Fargo & Co. analyst Mike Mayo famous that Dimon’s stock-sale plan “comes after his bearish feedback that embody the potential for rates of interest growing to 7%, and an ‘uninvestable’ banking sector” as a result of burden of proposed Basel III Endgame necessities.
“The timing of his first sale with these feedback obtained our consideration,” Mayo stated in a analysis be aware, including that the plan additionally serves as “a reminder that the CEO is getting nearer to retirement.”
(Credit score: Bloomberg)