NEW YORK (TheStreet) -- JPMorgan Chase and Co. (JPM) is being sued by the City of Miami over accusations of predatory mortgage lending in minority neighborhoods that led to a number of foreclosures during the housing crisis, Reuters reports.
The lawsuit, filed on June 13 in a Florida federal court, claims that JPMorgan has been violating the U.S. Fair Housing Act since 2004 by engaging in the practice of discriminatory mortgage lending.
The Fair Housing Act prohibits discrimination by direct providers of housing, banks, or other lenders based on race, religion, sex, or national origin, according to the Justice Department.
Shares of JPMorgan are lower by -0.39% to $56.82 in afternoon trading on Monday.
Separately, TheStreet Ratings team rates JPMORGAN CHASE & CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate JPMORGAN CHASE & CO (JPM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 88.15%. 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 20.99% trails the industry average.
- JPMORGAN CHASE & CO's earnings per share declined by 19.5% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, JPMORGAN CHASE & CO reported lower earnings of $4.32 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($5.39 versus $4.32).
- JPM, with its decline in revenue, slightly underperformed the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 9.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $14,667.00 million or 26.53% when compared to the same quarter last year. Despite a decrease in cash flow JPMORGAN CHASE & CO is still fairing well by exceeding its industry average cash flow growth rate of -42.10%.
- You can view the full analysis from the report here: JPM Ratings Report