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Dimon Plans to Promote $135M of JPMorgan Shares

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Dimon Plans to Promote $135M of JPMorgan Shares

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That plan was introduced earlier this week. The 67-year-old Dimon, atop the biggest US financial institution because the finish of 2005, has quipped for years that he plans to stay JPMorgan’s CEO for 5 extra years.

“On condition that that is Mr. Dimon’s first such sale since becoming a member of the corporate and that he’s such a important a part of the story, we’re sure the announcement will draw consideration,” Piper Sandler Cos. analysts R. Scott Siefers and Frank Williams, who’ve an obese ranking on JPMorgan shares, stated in a notice to purchasers.

The announcement could trigger some near-term weak spot within the inventory, they stated. Nonetheless, “diversification positive appears prudent, and we discover no fault with the choice.”

JPMorgan shares are up about 0.1% this yr, outperforming the S&P 500 Financials Index, which has dropped roughly 6.5%.

Wells Fargo & Co. analyst Mike Mayo famous that Dimon’s stock-sale plan “comes after his bearish feedback that embody the potential for rates of interest rising to 7%, and an ‘uninvestable’ banking sector” because of the burden of proposed Basel III Endgame necessities.

“The timing of his first sale with these feedback bought our consideration,” Mayo stated in a analysis notice, including that the plan additionally serves as “a reminder that the CEO is getting nearer to retirement.”

(Credit score: Bloomberg)

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