On July 31, 2023, JPMORGAN CHASE & CO (Trades, Portfolio), a leading global financial services firm, added 2,765,261 shares of Copa Holdings SA to its portfolio. This article provides an in-depth analysis of this transaction, the profiles of the guru and the traded company, and the potential implications of this acquisition.
Details of the Transaction
JPMORGAN CHASE & CO (Trades, Portfolio) acquired 2,765,261 shares of Copa Holdings SA at a price of $118.02 per share. This transaction increased the firm's holdings by 1843.51%, bringing its total shares in the company to 2,915,261. The acquisition had a 0.04% impact on the firm's portfolio and increased its position in the traded stock to 10.20%.
Profile of the Guru
JPMORGAN CHASE & CO (Trades, Portfolio) is one of the world’s oldest financial institutions, tracing its roots back to 1799. The firm operates in over 60 countries and focuses on six major businesses, including Investment Banking, Retail Financial Services, Chase Card Services, Commercial Banking, Treasury and Securities services, and Asset Management. The firm manages $808.67 billion in equity and has 6813 stocks in its portfolio. Its top holdings include S&P 500 ETF TRUST ETF(SPY, Financial), Apple Inc(AAPL, Financial), Amazon.com Inc(AMZN, Financial), Vanguard Total International Bond ETF(BNDX, Financial), and Microsoft Corp(MSFT, Financial). The firm's top sectors are Technology and Healthcare.
Profile of the Traded Company
Copa Holdings SA, based in Panama, is a leading provider of airline passenger and cargo service. The company operates through its subsidiaries and offers international air transportation for passengers, cargo, and mail. Copa Holdings SA has a market cap of $4.29 billion and its segments include Cargo and mail revenue, Other operating revenue, and Passenger revenue. The company's stock symbol is CPA and it went public on December 15, 2005.
The company's financial performance is robust, with a PE percentage of 9.69. The stock is modestly undervalued according to the GF Valuation, with a GF Value of 122.41 and a price to GF Value of 0.89. The stock has gained 383.62% since its IPO and 32.6% year-to-date. The GF Score of the stock is 70/100, indicating good future performance potential.
Analysis of the Traded Stock
The stock's Financial Strength is ranked 6/10, and its Profitability Rank is 7/10. The Growth Rank is 1/10, indicating a low growth rate. The stock's GF Value Rank and Momentum Rank are both 6/10. The stock's Piotroski F-Score is 8, indicating a healthy situation, and its Altman Z score is 2.43, suggesting it is not in the distress zone. The stock's cash to debt ratio is 0.59, and its interest coverage is 6.54.
Comparison with Other Gurus
Brandes Investment is the largest guru holding shares of Copa Holdings SA. Other gurus who also hold the traded stock include Dodge & Cox.
Conclusion
The acquisition of Copa Holdings SA by JPMORGAN CHASE & CO (Trades, Portfolio) is a significant move that increases the firm's exposure to the Transportation industry. The transaction could potentially enhance the firm's portfolio performance given the traded company's robust financial performance and growth potential. However, the impact of this transaction on the stock and the guru's portfolio will depend on various factors, including market conditions and the company's future performance.
