After Earnings, JP Morgan Chase and Co. (JPM) could be a Steal at the Current Price

What are insiders doing?

There seems to be some positive insider movement as well. On Jan. 29, JP Morgan Director Patrick Flynn bought 6,750 shares of the company, at $46.93 each, for a total value of roughly $320,000. This insider purchase might be a sign that company officials believe the stock is poised to outperform. However, just two days after on Jan 31, Managing Director Mary Erdoes sold 15,000 shares, so the insider picture is not as clear. No insider buying has been recorded in any of JPM’s main competitors in January, and yet there has been some insider selling this year going on at Goldman Sachs and Wells Fargo. At any rate, insider selling, unlike insider buying, is not as strong an indicator of how company officials see the their stock, so do not base an investing decision on this information alone.

Bottom Line

The market has not reacted to JP Morgan’s good earnings report. The bank has room to grow, trades at very low valuations, has an above-average dividend yield, and shows more than a 10% in implied upside when taking into account the analysts’ target price average. If an investor wants to go long on an American bank stock this year, I would definitely keep JPM in mind. With the economy recovering, and a strong bullish market forming, this stock will probably not be this cheap for too long.

The article After Earnings, this Bank Stock could be a Steal at the Current Price originally appeared on Fool.com and is written by Alex Bastardas.

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