Understanding JPMorgan’s Risk Factors


JPMorgan Chase (JPM) is a multinational bank and financial services company based in the U.S. Its customers include the world’s most important corporations, governments and institutions. The bank has $3.8 trillion in assets.

With this in mind, let’s take a look at JPMorgan’s latest financial performance and risk factors. (See Top Smart Score Stocks on TipRanks)

Q3 Financial Results

JPMorgan reported revenue of $30.4 billion in the third-quarter of 2021. The figure stood at $29.9 billion in the same quarter last year. During the quarter, it posted earnings of $3.74 per share against $2.92 per share in the same quarter last year.

JPMorgan distributed $3 billion in dividends at an amount of $1 per share during the third quarter and spent $5 billion on share repurchases. (See JPMorgan Chase stock charts on TipRanks).

Risk Factors

According to the new TipRanks’ Risk Factors tool, JPM’s main risk categories are Finance & Corporate, Macro & Political and Legal & Regulatory, which account for 36%, 26% and 23%, respectively, of the total 47 risks identified for the stock. The company has recently updated one of its Macro and Political risk factors.

The company reminds investors that the COVID-19 pandemic continues to pose a threat to its business and operating results. Further, the company cautions investors that the actions taken by governments in response to the pandemic could adversely affect its business.

The Macro and Political risk factor’s sector average is at 9%, compared to JPMorgan’s 26%. Shares of the company have gained about 29% year-to-date.

Analysts’ Take

On November 16, Evercore ISI analyst Glenn Schorr reiterated a Buy rating on the stock with a price target of $171. Schorr’s price target suggests 3.97% upside potential.

Consensus among analysts is a Moderate Buy based on 10 Buys, 2 Holds, and 1 Sell. The average JPMorgan Chase price target of $175.85 implies 6.92% upside potential.

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