10,802 American Express Company $AXP Shares Bought by Covenant Asset Management LLC

Key Points

• Covenant Asset Management increased its American Express stake by 58.4% in the third quarter, adding 10,802 shares to own 29,302 shares valued at approximately $8.9 million. Institutional investors collectively own 84.33% of AXP.
• American Express reported quarterly earnings of $4.53 per share, beating estimates, while revenue rose 10% year over year. The company also announced a quarterly dividend of $0.95 per share, or a 1.2% annualized yield.
• Analyst sentiment remains favorable but mixed, with a consensus “Moderate Buy” rating and a $365.63 price target. Potential upside is balanced by concerns over a reported $350 million AML fine and related regulatory and reputational risks.

Covenant Asset Management LLC increased its position in shares of American Express Company (NYSE:AXP - Free Report) by 58.4% during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 29,302 shares of the payment services company's stock after acquiring an additional 10,802 shares during the period. American Express comprises about 1.2% of Covenant Asset Management LLC's portfolio, making the stock its 16th biggest position. Covenant Asset Management LLC's holdings in American Express were worth $8,911,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of AXP. B.A. Schrock Wealth Management Inc. bought a new stake in American Express during the 3rd quarter worth approximately $3,235,000. Nolet Wealth Management LLC grew its position in shares of American Express by 5.5% in the 3rd quarter. Nolet Wealth Management LLC now owns 810 shares of the payment services company's stock valued at $246,000 after buying an additional 42 shares during the last quarter. Howard Financial Services LTD. grew its position in shares of American Express by 6.0% in the 3rd quarter. Howard Financial Services LTD. now owns 1,841 shares of the payment services company's stock valued at $560,000 after buying an additional 104 shares during the last quarter. Ashurst Perkins Coie Trust Co acquired a new stake in shares of American Express in the third quarter valued at about $35,000. Finally, ZWJ Investment Counsel Inc. increased its stake in shares of American Express by 3.1% in the third quarter. ZWJ Investment Counsel Inc. now owns 163,278 shares of the payment services company's stock valued at $50,120,000 after buying an additional 4,939 shares during the period. Institutional investors and hedge funds own 84.33% of the company's stock.

American Express News Summary

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

• Positive Sentiment: American Express is developing an “Intent Intelligence” framework and “Proof of Intent” token to help ensure AI agents complete only authorized purchases. If adopted broadly, the technology could reduce fraud and disputes, support safer agentic commerce and increase payment volumes. American Express Publishes Intent Intelligence Framework for Trusted Agentic Commerce
• Positive Sentiment: Analysts cited in recent coverage see a consensus price target of approximately $365.63, implying upside from recent trading levels. Other commentary highlights double-digit growth and a below-average valuation multiple, while the company has raised its full-year revenue outlook. American Express Consensus Target Price
• Neutral Sentiment: American Express was named title sponsor of the inaugural Hong Kong Sail Grand Prix. The agreement may strengthen brand visibility and customer engagement, but its direct financial impact is likely limited. American Express Named Title Sponsor of Hong Kong Sail Grand Prix
• Neutral Sentiment: Analyst views remain mixed: some see attractive growth at the current multiple, while others question whether the stock price fully reflects the returns generated by the business. This divergence could limit near-term momentum. Analysts Conflicted on American Express
• Negative Sentiment: A reported $350 million AML fine is weighing on the investment case. The penalty raises concerns about compliance costs, regulatory oversight and potential reputational damage, and is a key reason investors may view AXP as below fair value despite its earnings growth. American Express Stock May Sit Below Fair Value as AML Fine Lands

American Express Stock Down 1.1%

Shares of NYSE AXP opened at $306.57 on Thursday. The firm has a market cap of $207.03 billion, a PE ratio of 18.60, a P/E/G ratio of 1.34 and a beta of 1.08. American Express Company has a 12-month low of $290.97 and a 12-month high of $387.49. The company's fifty day simple moving average is $322.25 and its 200 day simple moving average is $325.22. The company has a quick ratio of 1.54, a current ratio of 1.55 and a debt-to-equity ratio of 1.66.

American Express (NYSE:AXP - Get Free Report) last posted its quarterly earnings results on Friday, July 24th. The payment services company reported $4.53 earnings per share for the quarter, beating the consensus estimate of $4.41 by $0.12. American Express had a net margin of 15.07% and a return on equity of 34.12%. The firm had revenue of $14.99 billion during the quarter, compared to the consensus estimate of $19.70 billion. During the same period in the previous year, the firm posted $4.08 earnings per share. The business's revenue was up 10.0% compared to the same quarter last year. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. As a group, sell-side analysts forecast that American Express Company will post 17.65 earnings per share for the current fiscal year.

American Express Announces Dividend

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

Analyst Ratings Changes

AXP has been the topic of several analyst reports. Royal Bank Of Canada reduced their target price on American Express from $415.00 to $400.00 and set an "outperform" rating on the stock in a report on Friday, October 9th. The Goldman Sachs Group increased their target price on shares of American Express from $400.00 to $410.00 and gave the company a "buy" rating in a research report on Monday, July 6th. Loop Capital lowered their price target on shares of American Express from $389.00 to $386.00 and set a "buy" rating for the company in a report on Monday, July 27th. Jefferies Financial Group upgraded shares of American Express from a "hold" rating to a "buy" rating in a report on Monday, July 13th. Finally, DZ Bank upgraded shares of American Express from a "hold" rating to a "buy" rating and set a $375.00 price target on the stock in a research report on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $365.63.

American Express 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.

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