Saturday, October 27, 2012
Over the last week and a half, high level JP Morgan executives have dumped over $6 million in shares in what experts have described as ‘unusual activity’.
Anyone believe JPM’s October 12th earnings report which beat expectations? Looks like accounting BS engineered to dump legacy positions on the general public.
A chorus of high-level executives inside JPMorgan (JPM) are selling down their stakes in the company, in what some experts are citing as “unusual” activity within the nation’s largest bank by deposits.
CNBC reports that JPM execs have dumped $6 million in the past 10 days!:
In sum, executives on JP Morgan’s operating committee have reaped proceeds greater than $6 million since October 15th — a move that appears uncharacteristic for the bank, according to Ben Silverman, director of research at InsiderScore.com, which tracks insider buying and selling activity.
“This is an unusual cluster of sales in that we typically don’t see this many insiders at the company [JPMorgan] selling at the same time,” Silverman said. “We look at events like this as a negative event for the stock.
Every exec but Blythe and Jamie are dumping the stock:
On Oct. 19, Mary Erdoes, CEO of JP Morgan Asset Management, sold 40,000 shares at $42.46 each, for roughly $1.7 million in proceeds.
On Oct. 17, John Donnelly, director of human resources, sold 40% of his JPM stock in his first insider transaction: Cashing in $1.1 million in shares at $43.29 apiece.
Two days earlier, executives across investment, consumer and mortgage banking made big sales. On Oct. 15 – the first business day post-earnings – Michael Cavanagh, the newly installed co-CEO of the investment bank, sold 40,000 at $42.00, cashing in roughly $1.7 million. Gordon Smith, Chase co-CEO of Consumer & Community Banking, cashed in 28,300 shares in a sale totaling $1.2 million. Frank Bisignano, the bank’s co-COO and head of JPM’s Mortgage Banking unit, sold $844,900 worth of stock at $42.25.
Perhaps Bill Murphy was merely a little early on his timing and JP Morgan is in fact facing major imminent losses?