Shares of JPMorgan (NYSE:JPM) are in the spotlight after CEO Jamie Dimon announced that he and his family plan on selling 1 million shares of JPM stock beginning in 2024 based on a stock trading plan. The transaction would mark Dimon’s first insider sale “since he took the helm at the Wall Street giant almost 18 years ago.”
“Mr. Dimon continues to believe the company’s prospects are very strong and his stake in the company will remain very significant,” said JPMorgan in a Form 8-K filing. “He and his family currently hold approximately 8.6 million shares, and in addition he continues to have unvested Performance Share Units relating to 561,793 shares and Stock Appreciation Rights relating to 1,500,000 shares, subject to the terms and conditions of each grant.”
The planned sale would be worth about $141 million based on yesterday’s closing price.
JPM Stock: Dimon Discloses Plan to Sell 1 Million Shares
Since taking on the role of CEO almost 18 years ago, Dimon hasn’t sold a single share of the investment bank. During that period, he has purchased $55.24 million worth of JPM stock. 500,000 of these shares were purchased in early 2009 during the midst of a major economic downturn. Dimon acquired shares worth $26.59 million in 2016 as a similar display of confidence. Since 2009, JPM is up by more than 400%.
The planned sale would represent 11.6% of Dimon’s existing stake and he would still own 7.6 million shares following the sale. Shareholders shouldn’t put too much weight on the sale, as Dimon will still be heavily invested in JPM afterwards. JPMorgan noted that the sale is attributed to “financial diversification and tax-planning purposes.”
A spokesperson at the investment bank stated that the sale has no relation to succession planning. This is a hot topic of late due to Morgan Stanley (NYSE:MS) CEO James Gorman recently announcing that he will step down at the end of the year. The spokesperson added that Dimon has no further plans to sell additional shares, although this is subject to change based on his financial needs.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
