American Express Company (NYSE:AXP) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• American Express has a “Moderate Buy” consensus rating from 31 analysts, with 15 buys, 14 holds, one sell and one strong buy. The average 12-month price target is $365.63, above the referenced share price of $309.97.
• The company reported quarterly EPS of $4.53, beating estimates, while revenue rose 10% year over year. American Express also maintained a $0.95 quarterly dividend, equivalent to a 1.2% annual yield.
• Key risks include regulatory scrutiny: the OCC fined American Express National Bank $350 million over deficiencies in anti-money-laundering controls. Institutional investors remain significant shareholders, collectively owning 84.33% of the stock.

American Express Company (NYSE:AXP) has earned a consensus recommendation of "Moderate Buy" from the thirty-one ratings firms that are covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, fourteen have assigned a hold recommendation, fifteen have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among brokers that have updated their coverage on the stock in the last year is $365.63.

Several analysts have recently commented on the stock. Loop Capital lowered their price target on shares of American Express from $389.00 to $386.00 and set a "buy" rating on the stock in a research report on Monday, July 27th. President Capital upped their target price on American Express from $359.00 to $400.00 and gave the company a "buy" rating in a research note on Wednesday, August 19th. The Goldman Sachs Group increased their target price on American Express from $400.00 to $410.00 and gave the company a "buy" rating in a report on Monday, July 6th. Jefferies Financial Group raised American Express from a "hold" rating to a "buy" rating in a research report on Monday, July 13th. Finally, Truist Financial cut their price target on American Express from $375.00 to $370.00 and set a "buy" rating for the company in a report on Wednesday, September 23rd.

Hedge Funds Weigh In On American Express

Institutional investors and hedge funds have recently modified their holdings of the company. Salem Investment Counselors Inc. grew its stake in American Express by 11.6% in the 3rd quarter. Salem Investment Counselors Inc. now owns 4,757 shares of the payment services company's stock worth $1,555,000 after acquiring an additional 494 shares during the period. Signal Advisors Wealth LLC raised its holdings in American Express by 21.3% in the 3rd quarter. Signal Advisors Wealth LLC now owns 1,171 shares of the payment services company's stock valued at $356,000 after acquiring an additional 206 shares during the last quarter. Foster Group Inc. lifted its stake in shares of American Express by 1.6% during the 3rd quarter. Foster Group Inc. now owns 27,002 shares of the payment services company's stock worth $8,338,000 after purchasing an additional 420 shares during the period. Krilogy Financial LLC lifted its stake in shares of American Express by 37.3% during the 3rd quarter. Krilogy Financial LLC now owns 8,805 shares of the payment services company's stock worth $2,678,000 after purchasing an additional 2,393 shares during the period. Finally, Walker Asset Management LLC lifted its stake in shares of American Express by 4.3% during the 3rd quarter. Walker Asset Management LLC now owns 1,639 shares of the payment services company's stock worth $498,000 after purchasing an additional 68 shares during the period. Hedge funds and other institutional investors own 84.33% of the company's stock.

Key Headlines Impacting American Express

Here are the key news stories impacting American Express this week:

• Positive Sentiment: JPMorgan maintained an Overweight rating and reduced its price target from $400 to $360, still implying roughly 16% upside from the referenced price. The company’s recent revenue-outlook increase and double-digit growth are also supporting the bullish valuation case. Analysts Conflicted on These Financial Names American Express Double-Digit Growth at a Below-Average Multiple
• Positive Sentiment: American Express published an “Intent Intelligence” framework intended to prevent AI shopping agents from making unauthorized purchases. The initiative could help reduce disputes and position Amex as a trusted payments provider as agentic commerce expands. American Express Intent Intelligence Framework
• Positive Sentiment: Some investment commentary sees the stock’s roughly 17% year-to-date decline as a potential buying opportunity, citing its premium-brand position, growth outlook and comparatively undemanding forward valuation. Is American Express a Good Finance Stock to Buy for 2027?
• Neutral Sentiment: Analyst opinion is mixed: some see attractive upside, while others remain cautious after the stock’s recent weakness. American Express is also scheduled to participate in upcoming investor conferences, which could provide additional detail on strategy and financial targets. American Express Investor Conferences
• Negative Sentiment: The OCC fined American Express National Bank $350 million and issued a cease-and-desist order over deficiencies in its Bank Secrecy Act and anti-money-laundering controls. Remediation costs, increased oversight and potential pressure on margins are the clearest near-term risks for AXP. American Express Fined by OCC Over AML Controls

American Express Price Performance

American Express stock opened at $309.97 on Wednesday. American Express has a 52 week low of $290.97 and a 52 week high of $387.49. The company has a quick ratio of 1.54, a current ratio of 1.55 and a debt-to-equity ratio of 1.66. The firm's 50-day simple moving average is $323.10 and its 200 day simple moving average is $325.17. The firm has a market capitalization of $209.33 billion, a PE ratio of 18.81, a P/E/G ratio of 1.34 and a beta of 1.08.

American Express (NYSE:AXP - Get Free Report) last issued its quarterly earnings data on Friday, July 24th. The payment services company reported $4.53 EPS for the quarter, beating analysts' consensus estimates of $4.41 by $0.12. The firm had revenue of $14.99 billion for the quarter, compared to analysts' expectations of $19.70 billion. American Express had a net margin of 15.07% and a return on equity of 34.12%. The firm's revenue was up 10.0% on a year-over-year basis. During the same period in the prior year, the company earned $4.08 EPS. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. On average, equities research analysts predict that American Express will post 17.65 EPS for the current fiscal year.

American Express Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 9th will be paid a dividend of $0.95 per share. This represents a $3.80 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, October 9th. American Express's dividend payout ratio (DPR) is currently 23.06%.

American Express Company Profile

American Express Company NYSE: AXP is a global financial services company that provides payment, lending, travel and related products to consumers, small businesses and corporate customers. Its offerings include consumer and business charge and credit cards, payment solutions, commercial financing, deposit products and rewards programs.

American Express also operates a worldwide merchant network and provides businesses with payment acceptance services, transaction-processing capabilities and data-driven marketing solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.