JPMorgan Announces Buybacks
In its third-quarter 10-Q filing, JPMorgan Chase ( JPM) on Thursday announced that on November 5, the Federal Reserve approved the company's revised capital plan, allowing the company to repurchase up to $3 billion in common shares during the first quarter of 2012. Following the Fed's last round of annual bank stress tests in March, the regulator approved JPMorgan's plan to repurchase up to $12 billion in shares during 2012, followed by $3 billion in buybacks during 2013. After JPMorgan CEO James Dimon first announced in May that the company was looking at a large second-quarter hedge trading loss, the repurchase program was suspended, after the company bought back roughly $1.6 billion in common shares. JPMorgan's stock was down slightly to close at $40.40. The shares have now returned 25% year-to-date, following a 20% decline during 2011. The shares trade for 1.1 times tangible book value, according to Thomson Reuters Bank Insight, and for eight times the consensus 2013 EPS estimate of $5.32, among analysts polled by Thomson Reuters. Based on a quarterly payout of 30 cents, JPMorgan's shares have a dividend yield of 2.97%. JPM data by YCharts
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Bank of America
Bank of America's shares have now returned 69% year-to-date, following a 58% decline during 2011. The shares trade for 0.7 times their reported Sept. 30 tangible book value of $13.48, and for 10 times the consensus 2013 EPS estimate of 97 cents. Following a meeting with the company's CFO Bruce Thompson, Atlantic Equities analyst Richard Staite on Thursday reiterated his "Buy" rating for Bank of America, with a $12 price target, saying that Thomson had "expressed confidence that in Q4 there will be a decline in Legacy Asset Servicing costs, that mortgage delinquencies will decline and that the
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