Traders Buy American Express (AXP) on Weakness

Traders bought 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 equities 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

Several brokerages recently weighed in on AXP. TheStreet upgraded American Express from a “c+” rating to a “b+” rating in a research report on Wednesday, April 18th. Oppenheimer set a $117.00 price target on American Express and gave the company a “buy” rating in a research report on Tuesday, March 13th. Sanford C. Bernstein restated an “outperform” rating and issued a $120.00 price objective (up from $115.00) on shares of American Express in a research report on Thursday, April 19th. Sandler O’Neill set a $109.00 price objective on American Express and gave the company a “buy” rating in a research report on Thursday, March 15th. Finally, Buckingham Research boosted their price objective on American Express from $110.00 to $111.00 and gave the company a “neutral” rating in a research report on Thursday, April 19th. One investment analyst has rated the stock with a sell rating, sixteen have assigned a hold rating and twelve have assigned a buy rating to the company. American Express currently has a consensus rating of “Hold” and an average target price of $107.45.

The company has a market capitalization of $83.65 billion, a price-to-earnings ratio of 16.73, a price-to-earnings-growth ratio of 1.31 and a beta of 1.10. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 2.67.

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

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 10th. Shareholders of record on Friday, July 6th will be paid a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 1.43%. The ex-dividend date of this dividend is Thursday, July 5th. American Express’s dividend payout ratio (DPR) is currently 23.85%.

In other American Express news, insider L Kevin Cox sold 2,975 shares of the business’s stock in a transaction on Thursday, April 26th. The stock was sold at an average price of $99.50, for a total transaction of $296,012.50. Following the transaction, the insider now owns 19,249 shares of the company’s stock, valued at $1,915,275.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, 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 value of $1,225,625.00. Following the transaction, the insider now directly owns 203,920 shares in the company, valued at approximately $19,994,356. The disclosure for this sale can be found here. Insiders have sold 80,936 shares of company stock worth $8,082,400 in the last three months. 0.20% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Certified Advisory Corp purchased a new stake in American Express in the fourth quarter valued at $101,000. Archford Capital Strategies LLC purchased a new stake in American Express in the first quarter valued at $123,000. Private Ocean LLC raised its position in American Express by 14,070.0% in the first quarter. Private Ocean LLC now owns 1,417 shares of the payment services company’s stock valued at $132,000 after purchasing an additional 1,407 shares during the period. Delpha Capital Management LLC purchased a new stake in American Express in the fourth quarter valued at $138,000. Finally, Focused Wealth Management Inc purchased a new stake in American Express in the fourth quarter valued at $139,000. 82.84% of the stock is currently owned by institutional investors.

About American Express

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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