Money Matters - Simplified

Eye on Insiders: JPMorgan Chase

Watching insiders is like participating in a weeks-long stakeout. You expect something to happen, but you don't know what. So you settle in, sip your coffee, and wait for clues to solving the big case.

Here, the "case" is direction: Which way is your stock headed? The "clues" come in the form of insider buying and selling action. Have a look at JPMorgan Chase (NYSE: JPM) over the past year.

Insider Rating

Bearish

Stock trading near an all-time high. Most purchases made at prices well below what the stock trades for currently.

Business Description

One
of the nation's largest banks, and arguably the best positioned after
it acquired valuable assets at depressed prices during last year's
meltdown.

Recent Price

$46.47

CAPS Stars (Out of 5)

**

Percentage of Shares Owned by Insiders

0.60%

Net Buying (Selling)*

$21.3 mil., including $10.5 mil. in preferred stock

Last Buyer (% Increase)

David Novak, director
1,000 shares at $33.21 apiece on June 25
(Purchase bolstered direct holdings by 1%)

Last Seller (% Decrease)

James Staley, Managing Director
37,000 shares at $32.92 apiece on April 17
(Sale represented 7% of direct holdings)

Competitors

Bank of America (NYSE: BAC)
Citigroup (NYSE: C)
Barclays (NYSE: BCS)

CAPS Members Bullish on JPM Also Bullish on

General Electric (NYSE: GE)

CAPS Members Bearish on JPM Also Bearish on

Goldman Sachs (NYSE: GS)

Recent Foolish Coverage of JPM

Buffett and Bogle Bash Wall Street

How Bad Are These Bank Failures

Lehman Brothers and the Age of Stupidity

Sources: Form 4 Oracle, Capital IQ, and Motley Fool CAPS. (Data current as of Sept. 22.)
*Open market sales and purchases only.

What we're tracking here, and why

Insider
buying data can be confusing. Here, I'm concentrating only on buying
and selling conducted in the open market. With most of these
transactions, insiders control the timing. Other times they're buying
or selling under the purview of a 10b5-1 plan. Either way, personal holdings are being bought and sold.

Those personal holdings matter the most -- they're the shares
executives hold for investment, rather than compensation. Employee
stock options are different; they're compensatory in the purest sense.
I've stripped out options-related buying and selling from the
calculations you see above.

 

© 2009 UCLICK, L.L.C.