JPMorgan Chase (JPM) Plans Dividend Increase and $19.4 Billion Capital Repurchase Program
JPMorgan Chase & Co. (NYSE:JPM) announced that the Federal Reserve Board does not object to the Firm’s capital plan under the recently concluded 2017 Comprehensive Capital Analysis and Review (“CCAR”). JPMorgan Chase’s Board of Directors intends to increase the quarterly common stock dividend to $0.56 per share (up from the current $0.50 per share), effective the third quarter of 2017, and has authorized gross common equity repurchases of up to $19.4 billion between July 1, 2017 and June 30, 2018 under a new common equity repurchase program.
Jamie Dimon, Chairman and CEO of JPMorgan Chase said: “Given the financial strength of the company and the significant capital and liquidity advancements we have made over the last several years, we are pleased to further increase capital returns to our shareholders while continuing to invest in our businesses for long-term profitability.”
Shares of JPMorgan are up nearly 2% to $91.56 in after-hours trading Wednesday. JPM has a 1-year high of $93.98 and a 1-year low of $58.76. The stock’s 50-day moving average is $85.78 and its 200-day moving average is $87.04.
On the ratings front, JPM has been the subject of a number of recent research reports. In a report issued on June 20, Merrill Lynch analyst Erika Najarian reiterated a Buy rating on JPM, with a price target of $99, which implies an upside of 10% from current levels. On June 15, RBC’s Jason Arnold reiterated a Buy rating on the stock and has a price target of $95.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Erika Najarian and Jason Arnold have a yearly average return of 1.7% and 11.1% respectively. Najarian has a success rate of 54% and is ranked #2427 out of 4588 analysts, while Arnold has a success rate of 67% and is ranked #302.
Overall, 5 research analysts have assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $93.89 which is 4.5% above where the stock opened today.