Jamie Dimon, CEO of JPMorgan Chase (NYES: JPM), says the bank will have "essentially flat" revenues this quarter excluding accounting adjustments. The company's private equity unit also expects to post a "modest loss" in the fourth quarter.
In a presentation on Wednesday, Dimon explained that, thanks to the troubled global economy, corporations delay raising capital and concerned investors are selling riskier assets.
Dimon also announced that JPMorgan may buy back an additional $950 million in stock approved as part of a $15 billion capital-distribution program by the Federal Reserve, according to the presentation (via Bloomberg).
The unit's long-term prospects show promise, Dimon said in the presentation. Global credit needs may expand by about $160 trillion over the next 10 years, and worldwide investment demand may increase from 20% of GDP in 2010 to 25% by 2030, according to the presentation.
The investment bank has a reputation as the "the largest and most profitable U.S. bank" and is "among the only major U.S. lenders to remain profitable throughout the recession."
That outlook may explain why, despite expectations for flat revenue, JPMorgan's stock climbed 2.32% today.
JPMorgan appears to be setting low expectations as a way of weathering against tough times ahead.
We were wondering how insiders of the broader financial sector felt about their profit outlook. To find out, we screened the financial sector for stocks with the highest levels of insider buying over the last six months.
Company insiders such as members of the board and upper management know more about their companies than anyone else, so when they express optimism in purchasing company stock, it's a very bullish development to analysts.
Do you think these companies will weather the storm? (Click here to access free, interactive tools to analyze these ideas.)
1. Sterling Financial (NAS: STSA) : Operates as the bank holding company for Sterling Savings Bank that provides various banking products and services to individuals, small businesses, commercial organizations, and corporations in the United States. Market cap of $1.01B. Net insider shares purchased over the last six months at 840.93K, which is 5.89% of the company's 14.27M share float.
2. Hudson Pacific Properties (NYS: HPP) : Operates as a vertically integrated real estate company. Market cap of $455.34M. Net insider shares purchased over the last six months at 1.21M, which is 5.48% of the company's 22.08M share float.
3. The Howard Hughes (NYS: HHC) : The Howard Hughes Corporation is a real estate investment and development company, engaging in managing, developing, and leasing commercial, residential, and mixed-use real estate. Market cap of $1.88B. Net insider shares purchased over the last six months at 1.23M, which is 4.45% of the company's 27.72M share float.
4. Everest Re Group (NYS: RE) : Underwrites reinsurance and insurance in the United States, Bermuda, and international markets. Market cap of $4.55B. Net insider shares purchased over the last six months at 1.25M, which is 2.88% of the company's 43.41M share float.
5. American International Group (NYS: AIG) : The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. Market cap of $46.45B. Net insider shares purchased over the last six months at 6.98M, which is 2.87% of the company's 243.56M share float.
6. Webster Financial (NYS: WBS) : Operates as the holding company for the Webster Bank that provides various banking and financial products and services in southern New England and eastern New York State. Market cap of $1.70B. Net insider shares purchased over the last six months at 2.05M, which is 2.85% of the company's 72.08M share float.
7. Saul Centers (NYS: BFS) : Operates as a real estate investment trust in the United States. Market cap of $676.92M. Net insider shares purchased over the last six months at 196.64K, which is 2.46% of the company's 7.99M share float.
8. Central Pacific Financial (NYS: CPF) : Operates as the bank holding company for Central Pacific Bank that provides commercial banking services to businesses, professionals, and individuals in Hawaii. Market cap of $560.29M. Net insider shares purchased over the last six months at 515.50K, which is 2.33% of the company's 22.15M share float.
9. Chesapeake Lodging Trust Common Shares of Beneficial Interest (NAS: CHSP) : REIT-Hotel/Motel Industry. Market cap of $511.34M. Net insider shares purchased over the last six months at 604.0K, which is 2.10% of the company's 28.72M share float.
10. Equity One (NYS: EQY) : Engages in the ownership, management, acquisition, renovation, and development of neighborhood and community shopping centers in the United States. Market cap of $1.95B. Net insider shares purchased over the last six months at 900.0K, which is 1.94% of the company's 46.49M share float.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Insider data sourced from Yahoo! Finance.
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