Bank of Nova Scotia Acquires New Stake in American Express Company $AXP

Key Points

• Bank of Nova Scotia acquired 211,834 shares of American Express during the second quarter, valued at approximately $71.7 million. Institutional investors and hedge funds collectively own 84.33% of AXP.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $373.32; JPMorgan and Goldman Sachs both set $400 targets.
• American Express reported quarterly EPS of $4.53, surpassing estimates of $4.41, while revenue rose 10% year over year to $19.64 billion. The company also maintains a quarterly dividend of $0.95, equivalent to a 1.1% annual yield.

Bank of Nova Scotia purchased a new position in American Express Company (NYSE:AXP) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 211,834 shares of the payment services company's stock, valued at approximately $71,653,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in AXP. Evolution Wealth Management Inc. raised its stake in shares of American Express by 6,600.0% in the 4th quarter. Evolution Wealth Management Inc. now owns 67 shares of the payment services company's stock valued at $25,000 after acquiring an additional 66 shares during the period. Joseph Group Capital Management acquired a new position in shares of American Express in the 4th quarter valued at about $26,000. Sfam LLC bought a new position in American Express during the 4th quarter worth $26,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of American Express during the fourth quarter valued at approximately $28,000. Finally, Measured Wealth Private Client Group LLC acquired a new position in American Express during the 3rd quarter valued at about $28,000. 84.33% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on AXP. Guggenheim initiated coverage on shares of American Express in a research note on Monday, July 13th. They issued a "buy" rating on the stock. UBS Group reduced their target price on shares of American Express from $386.00 to $384.00 and set a "neutral" rating for the company in a report on Monday, August 3rd. JPMorgan Chase & Co. upgraded American Express from a "neutral" rating to an "overweight" rating and increased their price target for the company from $328.00 to $400.00 in a research report on Monday, July 13th. The Goldman Sachs Group lifted their price target on American Express from $360.00 to $400.00 and gave the stock a "buy" rating in a research note on Tuesday, April 28th. Finally, Royal Bank Of Canada downgraded American Express from a "moderate buy" rating to a "hold" rating in a report on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $373.32.

American Express Trading Up 1.5%

American Express stock opened at $336.00 on Friday. 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 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 $343.19 and its 200-day simple moving average is $326.83. The stock has a market cap of $226.90 billion, a P/E ratio of 20.39, a P/E/G ratio of 1.36 and a beta of 1.04.

American Express (NYSE:AXP - Get Free Report) last released its quarterly earnings data on Friday, July 24th. The payment services company reported $4.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.41 by $0.12. The firm had revenue of $19.64 billion during the quarter, compared to analysts' expectations of $19.70 billion. American Express had a return on equity of 34.12% and a net margin of 15.07%.The business's revenue for the quarter was up 10.0% on a year-over-year basis. During the same quarter last year, the firm earned $4.08 earnings per share. 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 17.67 EPS for the current fiscal year.

American Express Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, August 10th. Shareholders of record on Thursday, July 2nd were paid a $0.95 dividend. The ex-dividend date was Thursday, July 2nd. This represents a $3.80 dividend on an annualized basis and a yield of 1.1%. American Express's payout ratio is 23.06%.

American Express Profile

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.

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