Can This Bank Stock Overcome Its Shaky Post-Earnings Past?

A sector-wide selloff is weighing on JPM ahead of the event

Digital Content Manager
Apr 6, 2022 at 12:07 PM
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JPMorgan Chase & Co (NYSE:JPM) will report first-quarter earnings one week from today, before the open on Wednesday, April 13. Below, we will break down the security's recent behavior in light of the Fed's recently hawkish activity, as well as its performance following its past earnings reports. 

The stock was last seen down 1.4% at $131.47, with the broader financial sector moving lower as investors continue to mull over U.S. Federal Governor Lael Brainard's hawkish comments. It's been a rough couple of weeks for the security overall, with the 40-day moving average rejecting JPM's late-March rally, and sending shares back toward a March 8, annual low of $127.27. So far this year, the equity has shed 17.2%. 

jpm april 6

Analyst sentiment is currently split. Of the 15 in coverage, eight consider the stock a "buy" or better, while seven say "hold" or worse. Meanwhile, the 12-month consensus target price of $167.44 is a 27.7% premium to current levels. 

While calls are still outnumbering puts overall, there has been an uptick of bearish activity in JPM's options pits. This is per the stock's 10-day put/call volume ratio of 0.57 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 91% of readings from the past year. In other words, there's been a healthier-than-usual appetite for puts lately.

JPMorgan Chase stock has a disappointing post-earnings past, with just one of its last eight next-day sessions notching a muted 0.6% gain. Regardless of direction, JPM has averaged a 2.4% next-day return, which is lower than the 5% swing options players are pricing in this time around. 

 

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