American Express (NYSE:AXP) Sets New 52-Week High After Earnings Beat

Key Points

• American Express reached a new 52-week high of $349.19 following an earnings beat, reporting $4.14 earnings per share versus analysts' expectations of $3.98.
• The company announced a quarterly dividend of $0.82 per share, reflecting an annualized basis of $3.28 and a yield of 1.0%, payable on November 10th.
• Several brokerages have raised their price targets for American Express, with Wells Fargo setting a target at $400.00, indicating a positive outlook amidst a mix of buy, hold, and sell ratings.

Shares of American Express Company (NYSE:AXP) reached a new 52-week high during mid-day trading on Monday following a better than expected earnings announcement. The stock traded as high as $349.19 and last traded at $344.76, with a volume of 420102 shares traded. The stock had previously closed at $346.62.

The payment services company reported $4.14 earnings per share for the quarter, beating analysts' consensus estimates of $3.98 by $0.16. The business had revenue of $18.43 billion during the quarter, compared to analyst estimates of $18.03 billion. American Express had a return on equity of 33.41% and a net margin of 14.97%.The company's quarterly revenue was up 11.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.49 EPS. American Express has set its FY 2025 guidance at 15.200-15.500 EPS.

American Express Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 10th. Shareholders of record on Friday, October 10th will be issued a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Friday, October 10th. American Express's payout ratio is presently 22.01%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on AXP. UBS Group boosted their price objective on American Express from $330.00 to $340.00 and gave the stock a "neutral" rating in a report on Tuesday, October 7th. Citigroup reissued a "neutral" rating and set a $327.00 price objective (up previously from $300.00) on shares of American Express in a report on Wednesday, July 2nd. Barclays boosted their price objective on American Express from $336.00 to $355.00 and gave the stock an "equal weight" rating in a report on Monday. Evercore ISI boosted their price objective on American Express from $330.00 to $365.00 and gave the stock an "in-line" rating in a report on Tuesday, September 30th. Finally, Wells Fargo & Company reissued an "overweight" rating and set a $400.00 price objective on shares of American Express in a report on Monday. Nine research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, American Express presently has an average rating of "Hold" and a consensus price target of $329.05.

Insider Buying and Selling

In related news, insider Laureen Seeger sold 16,998 shares of the business's stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $294.83, for a total value of $5,011,520.34. Following the completion of the sale, the insider owned 9,001 shares in the company, valued at $2,653,764.83. The trade was a 65.38% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Glenda G. Mcneal sold 50,000 shares of the business's stock in a transaction that occurred on Tuesday, July 29th. The stock was sold at an average price of $309.50, for a total value of $15,475,000.00. Following the completion of the sale, the insider owned 10,957 shares of the company's stock, valued at $3,391,191.50. The trade was a 82.03% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 269,996 shares of company stock worth $85,261,270 over the last ninety days. Corporate insiders own 0.20% of the company's stock.

Institutional Trading of American Express

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in shares of American Express by 1.3% during the second quarter. Vanguard Group Inc. now owns 46,425,262 shares of the payment services company's stock valued at $14,808,730,000 after acquiring an additional 581,369 shares in the last quarter. Wellington Management Group LLP grew its position in shares of American Express by 13.7% in the 1st quarter. Wellington Management Group LLP now owns 18,025,562 shares of the payment services company's stock worth $4,849,777,000 after buying an additional 2,168,445 shares during the period. Geode Capital Management LLC grew its stake in shares of American Express by 11.1% in the second quarter. Geode Capital Management LLC now owns 13,487,316 shares of the payment services company's stock worth $4,282,984,000 after acquiring an additional 1,349,746 shares during the last quarter. Norges Bank purchased a new stake in shares of American Express in the second quarter worth $1,897,335,000. Finally, Nuveen LLC purchased a new stake in shares of American Express in the first quarter worth $1,454,667,000. Institutional investors own 84.33% of the company's stock.

American Express Price Performance

The company has a debt-to-equity ratio of 1.78, a current ratio of 1.71 and a quick ratio of 1.69. The company has a market capitalization of $240.26 billion, a PE ratio of 23.24, a PEG ratio of 1.81 and a beta of 1.29. The firm has a 50-day moving average of $325.64 and a 200 day moving average of $302.66.

About American Express

American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.

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