JPMorgan's shares had fallen over the previous two sessions, following CEO James Dimon's late on Thursday of a $2 billion second-quarter trading loss. The Associated Press reported that at the company's annual meeting in Tampa, Fla., on Tuesday, a shareholder proposal to strip Dimon of JPMorgan's chairmanship garnered only 40% of the vote, while shareholders also approved the CEO's $23 million pay package for 2011.
The broad indexes were week as investors continued to worry over the decaying situation in Europe, as Greece has been unable to form a new government, nine days after its most recent elections, making another round of elections likely in June, as well as a possible sovereign default and exit from the euro.
The KBW Bank Index (I:BKX) pulled back 1% to close at 44.83, with 20 of the 24 index components showing declines for the session.JPMorgan Chase's shares have now returned 11% year-to-date, after a 20% decline during 2011. The shares are down 22% from their from their year-to-date closing high of $46.49 on March 27. Based on a 30-cent quarterly payout, the shares have a dividend yield of 3.31%. Following the completion of the Federal Reserve's annual bank holding company stress tests in March, JPMorgan's board of directors authorized $12 billion in common share repurchases for 2012, with another $3 billion in buybacks authorized for the first quarter of 2013. Several analysts -- including those that still rate JPMorgan's shares a buy -- have said that the company is likely to curtail its stock buybacks this year, in light of the extended wind-down of hedge positions leading to last week's announced loss, which could lead to further losses. JPMorgan's shares trade for 1.1 times tangible book value, according to Thomson Reuters Bank Insight, and for 6.5 times the consensus 2013 earnings estimate of $5.54 a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $4.54. Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
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