Zinger Key Points
- JPMorgan CEO Jamie Dimon sold shares of the banking giant as reported in a new filing.
- The sale, which was announced months ago, is the first by Dimon since becoming CEO of the banking giant.
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The leader of one of the largest banking companies has sold off a portion of their shares, following through on an earlier announcement from October.
What Happened: Longtime JPMorgan Chase JPM CEO Jamie Dimon sold shares of the stock as part of a prearrange Rule 10b5-1 plan, which can link future sales to a particular time or agreed upon price.
According to a filing from the company, Dimon sold 821,778 shares of JPMorgan Chase stock on Feb. 22 at an average price of $182.73. The total sale was valued at $150,163,493.94 based on calculations.
The sales were done in blocks and included sales from Dimon and his family. After the sale, the filing shows Dimon owns over seven million shares of JPMorgan shares counting his family's holdings.
The October announcement that Dimon planned on selling a portion included up to one million shares of his 8.6 million total.
This marks the first sale by Dimon since he became CEO of the company.
Related Link: Is Longtime JPMorgan Chief Jamie Dimon Ready To Retire? Another CEO Sold Shares Prior To Exiting
Why It's Important: Dimon and his family announced plans to sell a portion of their holdings in the stock back in October, stating it would be for "financial diversification and tax-planning purposes" with an estimated time period of 2024.
"This is Mr. Dimon's first such stock sale during his tenure at the company. Mr. Dimon continues to believe the company's prospects are very strong and his stake in the company will remains very significant," the filing said at the time.
The filing and plans to sell sparked rumors that Dimon could be looking to retire from JPMorgan.
A spokesperson for the bank told CNBC that Dimon had "no current plans" for additional sales outside the one million announced in the filing, but added that needs could change over time.
The pre-announced sale months ago may have softened the blow for the impact the sale would have had on JPMorgan shares.
JPM Price Action: JPMorgan shares are up 0.4% to $183.95 on Friday, versus a 52-week range of $123.11 to $185.20. Shares of the bank are up 32% in the last year.
Read Next: Jamie Dimon’s Pay Soars To $36M In 2023 As JPMorgan Secures Highest-Ever Profit
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