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J.P. Morgan shares close lower on Tuesday, bank to acquire global loyalty unit of cxLoyalty Group

J.P. Morgan Chase & Co (JPM) announced on Monday plans to acquire the global loyalty unit of cxLoyalty Group Holdings Inc. Yet, financial details of the agreement remained undisclosed.

J.P. Morgan Chase shares closed lower for the fifth time in the past ten trading sessions in New York on Tuesday. The stock edged down 0.26% ($0.33) to $125.01, after touching an intraday low at $124.91 and an intraday high at $126.24.

Shares of J.P. Morgan Chase & Co have retreated 10.32% so far in 2020 compared with a 15.36% gain for the benchmark index, S&P 500 (SPX).

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

cxLoyalty Group Holdings Inc is a third-party credit card loyalty program service provider.

Under the deal, J.P. Morgan will be able to integrate cxLoyalty’s technology platforms, full service travel agency, gift card, merchandise as well as points bank businesses into its Chase cards program.

“People across the globe want to vacation and travel again, and hopefully that will become a reality for many in the near future,” Marianne Lake, head of J.P. Morgan’s consumer lending business, was quoted as saying by Reuters.

“Acquiring the travel and rewards businesses of cxLoyalty will provide enhanced experiences to our millions of Chase customers once they are ready, comfortable and confident to travel,” Lake added.

Analyst stock price forecast and recommendation

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding J.P. Morgan Chase & Co’s stock price, have a median target of $130.00, with a high estimate of $150.00 and a low estimate of $80.00. The median estimate represents a 3.99% upside compared to the closing price of $125.01 on December 29th.

The same media also reported that at least 15 out of 27 surveyed investment analysts had rated J.P. Morgan Chase & Co’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.

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