American Express Company $AXP Stock Holdings Reduced by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group reduced its American Express stake by 2.7% in the third quarter, selling 38,104 shares and retaining 1.36 million shares valued at approximately $414.3 million. Institutional investors collectively own 84.33% of AXP.
• Analyst sentiment remains positive but mixed, with American Express receiving a consensus “Moderate Buy” rating and an average price target of $365.19.
• American Express reported quarterly EPS of $4.68, beating estimates, while revenue rose 8.9% year over year to $20.06 billion. The company also declared a quarterly dividend of $0.95 per share, equivalent to a 1.2% annual yield.

Sumitomo Mitsui Trust Group Inc. decreased its holdings in American Express Company (NYSE:AXP - Free Report) by 2.7% in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 1,362,280 shares of the payment services company's stock after selling 38,104 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned 0.20% of American Express worth $414,269,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in American Express during the 2nd quarter worth approximately $14,208,662,000. State Street Corp increased its position in shares of American Express by 40.2% in the 2nd quarter. State Street Corp now owns 40,967,262 shares of the payment services company's stock valued at $13,857,176,000 after purchasing an additional 11,739,541 shares during the last quarter. Bank of America Corp DE increased its position in shares of American Express by 8.4% in the 2nd quarter. Bank of America Corp DE now owns 7,969,555 shares of the payment services company's stock valued at $2,695,702,000 after purchasing an additional 614,981 shares during the last quarter. Corient Private Wealth LP acquired a new stake in shares of American Express in the 2nd quarter valued at $253,945,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of American Express in the 2nd quarter valued at $1,263,787,000. Institutional investors and hedge funds own 84.33% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Piper Sandler increased their target price on American Express from $396.00 to $405.00 and gave the company an "overweight" rating in a report on Wednesday, August 12th. Morgan Stanley decreased their price target on American Express from $382.00 to $380.00 and set an "equal weight" rating for the company in a report on Monday, October 12th. TD Cowen lowered their price objective on American Express from $338.00 to $335.00 and set a "hold" rating for the company in a research report on Tuesday, October 6th. Citigroup dropped their price objective on American Express from $340.00 to $335.00 and set a "neutral" rating on the stock in a report on Tuesday. Finally, Royal Bank Of Canada dropped their price objective on American Express from $415.00 to $400.00 and set an "outperform" rating on the stock in a report on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $365.19.

American Express Stock Down 1.4%

Shares of NYSE:AXP opened at $319.03 on Friday. American Express Company has a fifty-two week low of $290.97 and a fifty-two week high of $387.49. The company has a quick ratio of 1.54, a current ratio of 1.58 and a debt-to-equity ratio of 1.64. The firm's 50-day simple moving average is $317.18 and its 200-day simple moving average is $326.44. The company has a market cap of $213.93 billion, a price-to-earnings ratio of 17.96, a PEG ratio of 1.35 and a beta of 1.08.

American Express (NYSE:AXP - Get Free Report) last released its quarterly earnings results on Friday, October 23rd. The payment services company reported $4.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.50 by $0.18. American Express had a return on equity of 34.19% and a net margin of 15.80%. The business had revenue of $20.06 billion during the quarter, compared to the consensus estimate of $20.12 billion. During the same quarter in the previous year, the company posted $4.14 EPS. The business's revenue was up 8.9% on a year-over-year basis. American Express has set its FY 2026 guidance at 17.600-17.900 EPS. As a group, equities research analysts predict that American Express Company will post 17.88 earnings per share for the current year.

American Express Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Investors of record on Friday, October 9th will be paid a dividend of $0.95 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $3.80 annualized dividend and a dividend yield of 1.2%. American Express's dividend payout ratio is presently 21.40%.

Key American Express News

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

• Positive Sentiment: American Express introduced a new redemption option allowing eligible consumer and business cash-back cardmembers to deposit Reward Dollars into American Express High Yield Savings Accounts and Business Checking Accounts. The feature could improve customer retention, deepen relationships across the company’s card and banking products, and support deposit growth. American Express Connects Cash Back to High Yield Savings Accounts and Business Checking Accounts
• Positive Sentiment: The launch of Canada’s first Hilton Honors American Express co-branded card expands the company’s international partnership with Hilton and could generate additional spending, fees, and customer acquisition. American Express and Hilton Launch Canada's First Hilton Honors Credit Card
• Positive Sentiment: American Express benefited from positive payments-sector sentiment after Mastercard reported better-than-expected revenue and earnings, although the effect may be temporary. Mastercard Rises on Revenue and EPS Beat
• Neutral Sentiment: American Express issued $1.5 billion of fixed-to-floating-rate notes carrying a 5.447% rate. The financing provides capital, but increases interest expense and leverage exposure. American Express Issues New Fixed-to-Floating Rate Notes
• Neutral Sentiment: Analyst coverage remains mixed. Commentary favors Mastercard for faster growth, more diversified revenue, and lower credit risk, while other coverage highlights AXP’s strong profitability, revenue growth, share repurchases, and Berkshire Hathaway’s sizable stake.
• Negative Sentiment: A U.S. Bank risk executive is reportedly moving to American Express as the company deals with regulatory penalties related to anti-money-laundering compliance failures. The leadership addition may strengthen risk controls, but the penalties and compliance scrutiny create reputational and cost risks. U.S. Bank Risk Chief Heads to Amex
• Negative Sentiment: Relative-value analysis argues that Mastercard currently offers better growth prospects and lower credit risk than American Express, potentially limiting investor enthusiasm for AXP despite its lower valuation.

American Express Company Profile

American Express Company is a global financial services company that provides payment, lending, travel and expense management products and services. Its offerings include consumer and small-business charge and credit cards, corporate payment programs, business financing solutions, deposit products and digital payment services.

The company operates an integrated payments network that connects card members, merchants and financial institutions. American Express also provides merchant acquisition and payment processing services, data and analytics, fraud prevention tools, and customer loyalty programs.

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