NEW YORK (TheStreet) -- Shares of JPMorgan Chase & Co. (JPM) - Get Report are declining by 0.42% to $66.32 on Monday afternoon as the company plans to raise deposit rates for some large clients next month.
The deposit rate increase will apply to "most institutional clients" but the size will differ, according to a report cited by Dow Jones.
JPMorgan's decision comes after the Federal Reserve raised interest rates for the first time since 2006. The largest U.S. bank by assets increased its prime rate after the Fed's decision, CNBC.com reports.
The bank's rivals such as Bank of America (BAC), Wells Fargo & Co. (WFC) and Citigroup (C) have not changed their deposit rates, Dow Jones noted.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate JPMORGAN CHASE & CO as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- JPMORGAN CHASE & CO has improved earnings per share by 24.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JPMORGAN CHASE & CO increased its bottom line by earning $5.28 versus $4.32 in the prior year. This year, the market expects an improvement in earnings ($5.97 versus $5.28).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 22.3% when compared to the same quarter one year prior, going from $5,565.00 million to $6,804.00 million.
- Net operating cash flow has significantly increased by 1125.88% to $25,124.00 million when compared to the same quarter last year. In addition, JPMORGAN CHASE & CO has also vastly surpassed the industry average cash flow growth rate of 302.97%.
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 89.85%. Regardless of JPM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 27.66% trails the industry average.
- You can view the full analysis from the report here: JPM