Investment Platform Analysis: Nutmeg

The table below shows major transactions over the past four months by JPMorgan insiders and major shareholders. The data shows a mix of share purchases and sales, potentially indicating that the stock is approaching fair value.

• Robin Leopold – Head of Human Resources
  Uninformative Sell Grant/Award/Other – $10,254
• Alex Gorsky – Director
  Uninformative Buy Grant/Award/Other Acquisition – $37,418
• Stephen B. Burke – Director
  Uninformative Buy Grant/Award/Other Acquisition – $56,228
• Virginia Rometty – Director
  Uninformative Buy, Grant/Award/Other Acquisition – $34,991
• Mellody Hobson – Director
  Uninformative Buy, Grant/Award/Other Acquisition – $44,902
• Phebe Novakovic – Director
  Uninformative Buy, Grant/Award/Other Acquisition – $37,418
• Stacey Friedman – GC
  Informative Sell – $872,272
• Ashley Bacon – CRO
  Informative Sell Non-Open Market Sell – $1,014,810
• Lori Beer – CIO
  Informative Sell Non-Open Market Sell – $1,062,938
• Stacey Friedman – GC
  Informative Sell Non-Open Market Sell – $885,826

Nutmeg’s assets under management (AUM) have increased at an impressive rate. At the last count, the company was reported to have more than £5 billion in AUM. That’s more than double the reported figure in 2020.

Number of customers vs previous years.

Nutmeg doesn’t publish the exact number of customers it has. However, the above chart is composed of data published by various sources in each calendar year. In 2023, the company was reported to have more than 230,000 customers. That’s substantially above the 80,000 it had reported in 2020.

Revenue vs previous year vs consensus estimates.

Nutmeg is not a large contributor to JPMorgan’s overall revenue picture. The US bank is expected to generate more than $170 billion in revenue in 2024, representing a continuation of a positive trend in recent years.

Earnings per share (EPS) vs previous year vs consensus estimates.

JPMorgan has reported improving earnings per share (EPS) in recent years, albeit non-linearly. The earnings growth reflects positive trends in business performance.

Return on equity vs previous year and quarter vs consensus estimates

Return on Equity (RoE) is a standard measure of profitability when assessing bank stocks. In recent years, RoE has broadly moved up and down in line with EPS. In 2023, RoE came in at 15.89%.

Return on Risk Weighted Assets vs previous year and quarter vs consensus estimates

Return on Risk-Weighted Assets (RWA) is a financial metric used primarily in the banking industry to measure a bank’s profitability relative to its risk-adjusted assets. This ratio provides insight into how efficiently a bank is using its capital to generate profits while accounting for the riskiness of its assets. The data shows the returns have also, unsurprisingly, followed trends in EPS.

CET1 ratio vs previous year and quarter vs consensus estimates.

Common Equity Tier 1 (CET1) is a key measure of a bank’s financial strength, representing its core capital as a percentage of risk-weighted assets. A higher CET1 ratio indicates greater resilience to financial stress. The above graph shows that the CET1 remained fairly steady throughout the pandemic and into 2022.

Analysts’ price targets and ratings including commentary.

Based on 20 analysts offering 12-month price targets for JPMorgan Chase in the last 3 months, the average price target is $224.13 with a high forecast of $241 and a low forecast of $210.