JP Morgan Stock Price Chart, History and Forecast
Headquartered in Ney York City, JP Morgan is the United States' largest bank by market capitalization. And as such, its stock is a very popular one among investors interested in the banking sector. This article will go into detail about the JP Morgan stock price, including its history to its current price and predictions. We will also provide you with a tutorial to invest in JP Morgan easily, in just a few steps.
JP Morgan Stock Price Chart Today
JP Morgan Stock Price History
Let’s take a look at JP Morgan's historical stock prices, which have been through many evolutions since the company’s IPO. Note that all JP Morgan Chase stock prices have been adjusted for all the JPM stock splits.
JP Morgan Stock Price Historical Trends
JP Morgan’s IPO took place in 1978, when the stock was listed on the NYSE under the symbol JPM. From there, the JP Morgan price traded below the $20 mark up until 1995. It then maintained its rally and broker through the psychological $50 price mark in 1998. After a slight retracement, the JPM stock price gathered pace once again and hit a high of $65 by April 2000.
The dot com crash then dragged the JPM stock price below $20 by September 2002, and it bottomed out at $16 at the end of that month. It then started a gradual recovery that took it to a high of above the $50 mark on May 2007.
The 2008 recession then triggered a plunge of the price of JP Morgan stock to, once again, lows below the $20 mark by March 2009. However, the economic recovery worldwide saw JP Morgan stock rebound alongside the rest of the stock market.
After several attempts, JP Morgan stock finally broke above the previous $50 high in March 2013 and maintained a multiyear rally that took it to its all-time high of around $141 at the beginning of 2020. The Covid-19 pandemic then cause the JPM stock price to drop below $80, but just like before, JPM rebounded and pushed past the $100 in a matter of months.
JP Morgan Stock Price Splits
JP Morgan Chase has had four different stock splits in its history.
- The first stock split took place on February 11, 1982, and was a 3 for 2 stock split. This implies that for every 2 shares of JP Morgan owned pre-split, shareholders now owned 3 shares. For example, a 1000 share position pre-split became a 1500 share position.
- The second stock split took place on February 9, 1984, and was also a 3 for 2 split.
- A third stock split took place on March 17, 1998, and was a 2 for 1 stock split
- The fourth JPM stock split occurred on March 21, 2000, and was a 3 for 2 stock split.
The motive behind JP Morgan's decision to split its stocks was to keep the share price in a particular price range that would attract investors. A great example is the 1998 stock split, which occurred after a massive bull run – the stock price of JP Morgan quadrupled between 1995 and 1998.
JP Morgan Stock Price Prediction
Here's what analysts and JP Morgan's fundamentals say about the future of JP Morgan stock.
- JPM stock price Analyst Consensus: Buy, hold, or sell?
According to TipRanks, 12 analysts giving JP Morgan Chase & Co stock ratings rate it a moderate buy. Out of 12 analysts, 9 rate it buy, 2 rate it hold, and one rates it sell.
- JP Morgan Stock Price Predictions in 1, 2, 5, 10 years
According to AI Pickup, 7 Wall Street analysts offering JP Morgan stock forecasts for 2021 have an average price target of $183.29, with a high forecast of $210 and a low forecast of $141.
For 2022, 2025, and 2030, the same analysts have an average JP Morgan stock forecast of $187, $200, and $112, respectively.
How Can I Buy JPM Stock Today?
If you're at all interested in investing in JP Morgan stock, all you'll need to do is register with ZFX. ZFX is a safe and regulated broker, which benefits include its high regulation, transparent pricing, competitive spreads, fast execution, leverage trading, and a wide range of assets. The registration process is easy and quick, as we will now explain.
Investing in JP Morgan Stock: Tutorial
Before taking a look at the step-by-step guide on how to register with ZFX, note that with ZFX you will execute trades using the MT4 platform. MT4 boasts cutting-edge features that have made it the most popular trading platform in the investment realm today.
Step 1: Register with ZFX
First, navigate to ZFX's sign-up page and select "Open an Account" at the top of the page.
Step 2: Make Your First Deposit
You then need to deposit the amount you'd like to invest in JP Morgan stock into your new ZFX account. Choose the amount you want, and deposit the amount via bank transfer or credit card.
Step 3: Account Verification
Brokers such as ZFX are required by law to collect proof of address and identities. Submit your government-issued ID and bank statement (or any other utility bill), and ZFX then review and verify your identity and address.
Step 4: Invest in JP Morgan Stock at Current Price
Finally, download the MT4 platform using the link that ZFX sent to you by email, and install it on your device. Log in using the details ZFX sent to you, and find JP Morgan stock under the symbol JPM. You can then start investing.
To Buy or Not to Buy JP Morgan? Points to Consider
Splendid historical performance
There is a reason JP Morgan is the best among the megabanks, and one of the best performing bank stocks overall over the last couple of years. That same reason explains how JP Morgan beat out all other banks during the 2020 pandemic.
In 2020, which was the worst for banks around the world since 2008's great recession, JP Morgan was only down 5.5% for the year, while its counterparts were down by over 10%. Some even dipped by as much as 40%.
With that in mind, the reason for JP Morgan's outstanding performance over the last several years is its efficiency. The bank's sources of income are diversified, and it boasts one of the most rock-solid balance sheets. To use two essential measures of a bank's performance, JP Morgan boasts a return on equity of 19% and an efficiency ratio of 58%, both of which best statistics from the other four big banks in the nation.
JP Morgan is also well known for its "fortress" balance sheet, which has allowed it to withstand even the last two devastating stock market crashes.
JP Morgan has a strong CEO
The only remaining big bank CEO who weathered the 2008 – 2009 financial crisis as well as the Coronavirus pandemic, Jamie Dimon, JP Morgan's CEO, is a Wall Street legend whose word is taken quite seriously by everyone including competitors, investors, and analysts alike.
Of course, there was a JP Morgan Chase before Dimon came into the picture. But, since taking over as CEO in 2006, JP Morgan's assets have risen nearly 160%, while earnings have more than tripled. Not to mention JP Morgan stock, which has returned about 500% since he became chief, more than 100 points above the S&P 500 index. Dimon’s long lasting success as the CEO of JP Morgan is another reason why investors feel confident about betting on JPM stock price.
JP Morgan is opening up to new markets
JP Morgan Chase is opening a commercial banking office in South Korea as part of its goal to establish a presence in nations outside Canada and the US. The banks announced expansion goals for its commercial banking division to the Asia Pacific and Europe in 2019, eyeing markets in the UK, France, Spain, the Netherlands, Italy, and Germany.
Initially, the venture into Asia pacific was centered on Singapore. Another thing worth noting is that to ensure success in South Korea, JP Morgan's strategy has been to employ local commercial bankers who have a greater domestic network and understand local needs.
Things to Know About the JP Morgan Stock Price Before You Invest
1. Stay updated on Monetary Policy changes
One of the few black spots in JP Morgan's financial report is its dip in interest income on its assets. The investment bank's net interest margins fell 11% year on year, thanks to the expansionary monetary policy carried over from 2020, during the beginning of the pandemic.
That said, the conditions look likely to change. As the Federal Reserve announced, the U.S. is edging closer to a tapering policy as inflation shoots past 5%. So if you wish to invest in JP Morgan stock, you’ll need to keep updated about any changes in US monetary policies which could directly impact JP Morgan and its share price.
2. JP Morgan’s Mergers and Acquisitions
Unprecedented bullishness among firms and investors has resulted in a record number of M&As (Mergers and Acquisitions). In 2021, deal-making picked up where it left off in 2020, and no company has benefited more from these deals than JP Morgan.
In fact, in regards to deals in the first half of 2021 alone for example, JP Morgan saw its advisory value increase by 342 % to $820 billion (compared to the first half of 2020). Because of how impactful M&As are to JP Morgan’s value, traders should follow developments related to these.
3. Earnings and Future Returns
As an investor interested in buying a bank stock, you need to review JP Morgan stock’s price-to-book ratio (P/B ratio) and price-to-earnings ratio (P/E ratio) when you want to invest in the stock. This will help you determine the fair value for the shares.
Note: firms with a higher price-to-earnings ratio tend to boast higher share prices, and a high price-to-earnings ratio also implies investors anticipate higher future earnings.
4. Negative PR and Lawsuits
JP Morgan has had to deal with quite a few controversies throughout its history. For instance, in recent years alone, the bank has been accused of a breach of the Truth in Lending Act, conflict of interest on investment research, mortgage overcharging, manipulation of the energy market, the Madoff scandal, as well as sanction violations.
Note that negative PR and Lawsuits tend to pressure JP Morgan bank stock prices lower. So again, traders should make sure to keep informed of any negative event likely to impact the JPM share price, in order to then act accordingly.
Bottom Line: What Can We Expect from the JP Morgan Stock Price?
Traders interested in the banking sector often turn towards JP Morgan stock, and there are many reasons for this. Indeed, the company boasts a strong leadership, has long history of solid financial returns, and has proven it can to resist the test of time, having overcome recessions -- and, more recently, the covid-19 pandemic.
If you think the JP Morgan stock price today is at the right level for you to invest, you can trade JPM today with ZFX. You’ll be able to add the bank stock to your portfolio in just a few steps, as explained earlier in this article.