American Express (NYSE:AXP) Shares Gap Up on Strong Earnings

Key Points

• American Express shares surged after the company reported earnings per share of $4.14, exceeding analysts' expectations of $3.98, with quarterly revenue up 11.0% year-over-year.
• The company announced a quarterly dividend of $0.82, payable on November 10, with a current dividend yield of 1.0%.
• Analysts have varying views on the stock, with nine recommending a Buy rating and a consensus price target of $323.60.

Shares of American Express Company (NYSE:AXP) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $323.12, but opened at $332.38. American Express shares last traded at $337.55, with a volume of 1,563,241 shares traded.

The payment services company reported $4.14 earnings per share for the quarter, topping analysts' consensus estimates of $3.98 by $0.16. American Express had a return on equity of 32.87% and a net margin of 14.78%.The company's quarterly revenue was up 11.0% compared to the same quarter last year. During the same period last year, the company posted $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. Stockholders of record on Friday, October 10th will be given a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Friday, October 10th. American Express's dividend payout ratio (DPR) is currently 23.02%.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Wells Fargo & Company boosted their price target on shares of American Express from $350.00 to $375.00 and gave the company an "overweight" rating in a research report on Friday, September 5th. Citigroup restated a "neutral" rating and issued a $327.00 target price (up previously from $300.00) on shares of American Express in a research note on Wednesday, July 2nd. DZ Bank cut American Express from a "hold" rating to a "sell" rating in a research note on Monday, July 21st. Keefe, Bruyette & Woods increased their price objective on American Express from $371.00 to $394.00 and gave the stock an "outperform" rating in a report on Wednesday, October 1st. Finally, BTIG Research set a $277.00 target price on shares of American Express and gave the company a "sell" rating in a report on Monday, July 14th. Nine equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $323.60.

Insider Buying and Selling at American Express

In related news, Vice Chairman Douglas E. Buckminster sold 23,505 shares of the business's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $326.37, for a total value of $7,671,326.85. Following the completion of the transaction, the insider directly owned 123,613 shares in the company, valued at $40,343,574.81. The trade was a 15.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Anna Marrs sold 5,500 shares of the stock in a transaction on Tuesday, July 29th. The shares were sold at an average price of $310.77, for a total value of $1,709,235.00. Following the sale, the insider owned 20,311 shares in the company, valued at approximately $6,312,049.47. This represents a 21.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 269,996 shares of company stock worth $85,261,270 in the last 90 days. Insiders own 0.20% of the company's stock.

Institutional Investors Weigh In On American Express

Several large investors have recently bought and sold shares of AXP. Briaud Financial Planning Inc bought a new stake in shares of American Express in the second quarter worth approximately $26,000. Access Investment Management LLC purchased a new stake in American Express in the second quarter worth approximately $26,000. MorganRosel Wealth Management LLC bought a new stake in American Express in the 1st quarter worth approximately $29,000. Halbert Hargrove Global Advisors LLC raised its stake in American Express by 210.7% during the 3rd quarter. Halbert Hargrove Global Advisors LLC now owns 87 shares of the payment services company's stock valued at $29,000 after buying an additional 59 shares during the last quarter. Finally, Hughes Financial Services LLC bought a new position in shares of American Express during the 1st quarter valued at $35,000. 84.33% of the stock is currently owned by institutional investors.

American Express Trading Up 4.6%

The company has a current ratio of 1.61, a quick ratio of 1.60 and a debt-to-equity ratio of 1.80. The stock has a market capitalization of $235.11 billion, a PE ratio of 23.71, a P/E/G ratio of 1.73 and a beta of 1.29. The stock has a 50 day moving average price of $324.66 and a 200-day moving average price of $301.57.

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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