J.P. Morgan shares close lower on Wednesday, Wall Street bank plans layoffs in consumer division, Bloomberg reports

According to a report by Bloomberg, citing sources with knowledge of the matter, J.P. Morgan Chase & Co (JPM) intends to cut hundreds of jobs throughout its consumer unit.

No exact number of job cuts was highlighted in the report, but yet, the media said the planned layoffs represented nearly 1% of people employed at the division.

J.P. Morgan Chase shares closed lower for the seventh time in the past ten trading sessions in New York on Wednesday. The stock edged down 0.15% ($0.20) to $134.23, after touching an intraday high at $135.53, or a price level not seen since January 24th ($136.42).

Shares of J.P. Morgan Chase & Co have retreated 3.71% so far in 2020 compared with a 1.32% gain for the benchmark index, S&P 500 (SPX).

In 2019, J.P. Morgan’s stock went up 42.80%, thus, it outperformed the S&P 500, which registered a 28.88% gain.

J.P. Morgan’s consumer division encompasses the credit card, deposit, home and auto lending businesses and accounts for nearly 50% of the group’s revenue.

The report also pointed out that affected employees would be notified on February 6th and would be given a chance to apply for other roles at J.P. Morgan.

Analyst stock price forecast and recommendation

According to CNN Money, the 23 analysts, offering 12-month forecasts regarding J.P. Morgan Chase & Co’s stock price, have a median target of $142.00, with a high estimate of $170.00 and a low estimate of $85.00. The median estimate represents a 5.79% upside compared to the closing price of $134.23 on January 29th.

The same media also reported that at least 14 out of 26 surveyed investment analysts had rated J.P. Morgan Chase & Co’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

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