How Will JPMorgan (JPM) Stock Be Affected By Hacking Attack?

NEW YORK (TheStreet) -- JPMorgan Chase & Co. (JPM) is working with the FBI to investigate a possible hacking attack at the company, and four other financial institutions, the Wall Street Journal reports.

Shares of JPMorgan are down -0.86% to $59.08 in mid-morning trading on Thursday.

The exact timing and extent of the hackings haven't been determined, but cyber security experts began to look into the attacks at JPMorgan earlier this month, sources told the Journal.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The hackers used the person computer of a JPMorgan employee to access the company's network.

The company announced this morning that it has not seen any "unusual fraud" and said it's working closely with investigators to determine the depth of the hacks, and will take "additional steps" to keep sensitive and confidential information safe, the Journal added.

Separately, TheStreet Ratings team rates JPMORGAN CHASE & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate JPMORGAN CHASE & CO (JPM) a BUY. 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 increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

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.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.7%. Since the same quarter one year prior, revenues slightly dropped by 4.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 89.61%. 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, JPM's net profit margin of 22.57% compares favorably to the industry average.
  • JPMORGAN CHASE & CO's earnings per share declined by 8.8% 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 ($5.51 versus $4.32).
  • The change in net income from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 7.9% when compared to the same quarter one year ago, dropping from $6,496.00 million to $5,985.00 million.
  • You can view the full analysis from the report here: JPM Ratings Report

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