If You Invested $1,000 In JPM When Chase Manhattan Merged With J.P. Morgan, You'd Have This Much Now

Zinger Key Points
  • One of the largest banking mergers was announced in 2000.
  • A look at how shares of JPMorgan & Chase have performed since the merger.

One of the largest banks in the U.S. got even bigger on Sept. 13, 2000: Chase Manhattan announced it would acquire J.P. Morgan & Company for about $30.9 billion.

The deal took Chase from the third-largest bank in the U.S. to the second position based on assets.

Today, the company trades as JPMorgan Chase & Co JPM and is the largest bank in the U.S. by assets under management.

Banking stocks have been under pressure in 2023 with the collapse of several regional banks. JPMorgan Chase and other large banks may benefit from getting increased deposits and new accounts created by those shying away from regional banks.

Related Link: Exclusive: Roundhill Launches Big Bank ETF With 6 Holdings, Highlights Diversified Deposits, Stronger Balance Sheets 

Investing $1,000: A major acquisition or merger such as the one placed between Chase and JPMorgan can serve as a catalyst for future growth. Investing $1,000 in JPMorgan & Company on Sept. 14, 2000 — the day after the deal was announced — could have bought 19.23 shares of the company.

The 19.23 shares would be worth $2,506.05 today, based on a current share price of $130.32 for JPM.

Investing $1,000 in JPM shares based on the acquisition would have generated a return of 150.6% over 22 years, not including dividends.

Shares of JPMorgan & Co are up over 170% in the last decade but have struggled in recent years. Shares are up 19% in the last five years and trading down on a one-year and year-to-date basis.

JPM shares have traded between $101.28 and $144.34 over the last 52 weeks.

There is not guarantee that shares of JPMorgan will rise in the future, but the focus on big banks post-banking crisis of 2023 could see the market leader come out as a winner.

Next: US Banks Face Regulatory Risks Following Silicon Valley Bank Collapse: BofA Names 4 Changes That Could Be Ahead

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