Port Capital LLC Takes Position in American Express Company $AXP

Key Points

• Port Capital LLC acquired 99,114 American Express shares worth approximately $33.5 million in the second quarter, making AXP about 1.4% of its portfolio. Several other institutional investors also initiated positions, and institutional ownership stands at 84.33%.
• Analyst sentiment is generally positive, with American Express receiving a consensus “Moderate Buy” rating and an average price target of $373.32, despite ratings ranging from sell to strong buy.
• American Express reported quarterly EPS of $4.53, exceeding estimates of $4.41, while revenue rose 10% year over year to $19.64 billion. The company also declared a quarterly dividend of $0.95 per share, equivalent to a 1.1% yield.

Port Capital LLC acquired a new position in shares of American Express Company (NYSE:AXP) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor acquired 99,114 shares of the payment services company's stock, valued at approximately $33,525,000. American Express accounts for about 1.4% of Port Capital LLC's portfolio, making the stock its 28th largest position.

Several other hedge funds have also modified their holdings of the stock. Freestone Grove Partners LP purchased a new stake in American Express in the second quarter valued at approximately $31,590,000. Caisse de depot et placement du Quebec purchased a new position in American Express during the second quarter worth approximately $100,344,000. Gallagher Fiduciary Advisors LLC purchased a new position in American Express during the second quarter worth approximately $270,000. Pointe Capital Management LLC acquired a new position in shares of American Express in the 2nd quarter valued at $274,000. Finally, Odyssean LLC acquired a new position in shares of American Express in the 2nd quarter valued at $1,518,000. 84.33% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. TD Cowen upped their price objective on American Express from $330.00 to $338.00 and gave the stock a "hold" rating in a report on Tuesday, July 7th. Guggenheim started coverage on American Express in a research report on Monday, July 13th. They issued a "buy" rating on the stock. Piper Sandler lifted 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. DZ Bank raised American Express from a "hold" rating to a "buy" rating and set a $375.00 price target for the company in a research report on Thursday, June 18th. Finally, BTIG Research dropped their price target on American Express from $324.00 to $315.00 and set a "sell" rating for the company in a research note on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, American Express currently has an average rating of "Moderate Buy" and a consensus price target of $373.32.

American Express Trading Up 0.1%

Shares of AXP stock opened at $336.32 on Thursday. 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 fifty-two week low of $290.97 and a fifty-two week high of $387.49. The firm's 50 day moving average price is $343.05 and its two-hundred day moving average price is $326.31. The stock has a market cap of $227.12 billion, a price-to-earnings ratio of 20.41, a price-to-earnings-growth 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, topping the consensus estimate of $4.41 by $0.12. The company had revenue of $19.64 billion during the quarter, compared to analyst estimates of $19.70 billion. American Express had a net margin of 15.07% and a return on equity of 34.12%. The business's quarterly revenue was up 10.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.08 earnings per share. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. On average, analysts anticipate that American Express Company will post 17.67 EPS for the current year.

American Express Dividend Announcement

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

About American Express

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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