JPMorgan Chase & Co. has announced on Wednesday its authorization for buying back an additional $1.88 billion in stock through June. The oard of Directors of the biggest bank by assets in the US has approved the repurchasing subject to obtainment of clearance from the Federal Reserve authority.
The repurchasing appears as the latest followed by regulator approved previous buybacks of $6.4 billion in last year's capital plan. However, the firm has confirmed receiving a no objection from the Board of Governors of the Federal Reserve System in favor of the increase, reports Bloomberg, citing a statement from the New York based bank issued on Thursday as the source.
The equity repurchase program of JPMorgan has no specific timeframe and exact quantity of common equity to be repurchased. The quantity of repurchased shares will depend on factors like alternative investment opportunities, internal capital position and regulatory considerations. Even the program doesn't include specific price targets, according to a statement furnished in JPMorgan's own website.
The board of JPMorgan has also allowed execution of the program through open market purchases or privately negotiated transactions, including the use of Rule 10b5-1 programs. However, the program may be suspended at any time within its own discretion. JPMorgan serves millions of clients in the US. The banking giant also serves world's most prominent corporate institutional and government clients under its own brand. The leading global financial services firm possesses assets worth $2.4 trillion and operations worldwide. The firm has represented itself as a leader in investment banking, financial services, commercial banking, financial transaction processing, and asset management. Stock of the firm has a 50-day moving average of $57.93 and 200-day moving average of %62.01. The New York based bank has a market capitalization of $215.20 billion and a PE ratio of 9.79. JPMorgan has reported $1.32 earnings per share for the fourth quarter of 2015 beating the Zacks' consensus estimate of $1.25. Analysts predict that prices of the firm's share will reach $69.642 by the next year, according to a report published in the Examiner Gazette. Its share prices have climbed 0.9% to $59.27 at 5.15 pm during the extended trading in New York on Thursday following the buy-back announcement. The prices have been witnessed to drop 11% during the regular trading on Thursday compared to that existed in December 31. Jamie Dimon, JPMorgan CEO, has purchased 500,000 shares of the bank for $26.6 million on February 11. The stock has hit its lowest on that day and rallied 12% since then.
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