Investors Buy Shares of American Express (AXP) on Weakness

Traders purchased shares of American Express (NYSE:AXP) on weakness during trading on Tuesday. $109.32 million flowed into the stock on the tick-up and $65.55 million flowed out of the stock on the tick-down, for a money net flow of $43.77 million into the stock. Of all companies tracked, American Express had the 17th highest net in-flow for the day. American Express traded down ($0.33) for the day and closed at $98.21

A number of research firms have issued reports on AXP. TheStreet raised American Express from a “c+” rating to a “b+” rating in a research note on Wednesday, April 18th. Oppenheimer set a $117.00 price objective on American Express and gave the stock a “buy” rating in a research note on Tuesday, March 13th. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $120.00 price objective (up previously from $115.00) on shares of American Express in a research note on Thursday, April 19th. Sandler O’Neill set a $109.00 price objective on American Express and gave the stock a “buy” rating in a research note on Thursday, March 15th. Finally, Buckingham Research lifted their price objective on American Express from $110.00 to $111.00 and gave the stock a “neutral” rating in a research note on Thursday, April 19th. One investment analyst has rated the stock with a sell rating, sixteen have issued a hold rating and twelve have given a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $107.45.

The company has a debt-to-equity ratio of 2.67, a current ratio of 1.90 and a quick ratio of 1.90. The firm has a market cap of $84.50 billion, a PE ratio of 16.52, a price-to-earnings-growth ratio of 1.33 and a beta of 1.10.

American Express (NYSE:AXP) last posted its quarterly earnings data on Wednesday, April 18th. The payment services company reported $1.86 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.71 by $0.15. American Express had a return on equity of 28.41% and a net margin of 8.79%. The company had revenue of $9.72 billion during the quarter, compared to analysts’ expectations of $9.49 billion. During the same quarter in the previous year, the business earned $1.34 EPS. American Express’s revenue was up 11.6% compared to the same quarter last year. analysts forecast that American Express will post 7.23 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 10th. Investors of record on Friday, July 6th will be issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.44%. The ex-dividend date is Thursday, July 5th. American Express’s payout ratio is currently 23.85%.

In related news, Vice Chairman Stephen J. Squeri sold 12,500 shares of the business’s stock in a transaction on Tuesday, May 1st. The stock was sold at an average price of $98.05, for a total transaction of $1,225,625.00. Following the completion of the transaction, the insider now owns 203,920 shares in the company, valued at approximately $19,994,356. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Jeffrey C. Campbell sold 9,000 shares of the business’s stock in a transaction on Friday, June 1st. The shares were sold at an average price of $98.79, for a total value of $889,110.00. Following the transaction, the chief financial officer now owns 70,986 shares of the company’s stock, valued at approximately $7,012,706.94. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 80,936 shares of company stock valued at $8,082,400. 0.20% of the stock is owned by company insiders.

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. lifted its holdings in shares of American Express by 1.0% in the 1st quarter. BlackRock Inc. now owns 43,504,697 shares of the payment services company’s stock worth $4,058,115,000 after buying an additional 414,196 shares during the period. Veritas Asset Management LLP lifted its holdings in shares of American Express by 9.0% in the 1st quarter. Veritas Asset Management LLP now owns 11,996,953 shares of the payment services company’s stock worth $1,119,076,000 after buying an additional 992,800 shares during the period. Geode Capital Management LLC lifted its holdings in shares of American Express by 5.2% in the 4th quarter. Geode Capital Management LLC now owns 7,700,608 shares of the payment services company’s stock worth $763,153,000 after buying an additional 382,691 shares during the period. Clearbridge Investments LLC lifted its holdings in shares of American Express by 3.9% in the 4th quarter. Clearbridge Investments LLC now owns 5,655,948 shares of the payment services company’s stock worth $561,692,000 after buying an additional 209,808 shares during the period. Finally, American Century Companies Inc. lifted its holdings in shares of American Express by 11.5% in the 1st quarter. American Century Companies Inc. now owns 5,239,962 shares of the payment services company’s stock worth $488,784,000 after buying an additional 539,681 shares during the period. Institutional investors own 82.84% of the company’s stock.

American Express Company Profile

American Express Company, together with its subsidiaries, provides charge and credit payment card products and travel-related services to consumers and businesses worldwide. It operates through four segments: U.S. Consumer Services, International Consumer and Network Services, Global Commercial Services, and Global Merchant Services.

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