NEW YORK - Some bank stocks have fa ired worse than others since they reported their first quarter results. Banks have become an unpopular sector ever since they raised their dividends. The dividend raise essentially meant that bank stocks could be seen as regular companies again. However investors have sold the banks stocks lower on the news.
J.P. Morgan the largest U.S. Financial by market capitalization has had it stock pummelled following its record $5.555 billion quarter. The stock was at $46.64 the day before it reported and it has lost 10% of its value since. It is puzzling to see a bank lose $16 billion in market capitalization since its report record results.
Citigroup has also lost 10% of its value since it reported on April 18. The company has been under heavy selling pressure of late. Investors are looking towards banks with less financial problems.
Surprisingly USB has declined since reporting on April 19. USB known as one of the bright light on Wall Street along with PNC, WFC and JPM. The company reported excellent profitability but the stock was pummelled. JPM, WFC, PNC and USB are the only major bank stocks to be within their pre-recession trading ranges. These banks used the recession to expand.
To see the full USB report click here.
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