Shares of American Express Company (NYSE:AXP) have received a consensus recommendation of “Hold” from a group of twenty-five analysts currently covering the stock. According to data from Marketbeat.com, one analyst has assigned a sell rating, while sixteen have opted for a hold rating and eight have issued a buy rating. The average price target for the next year stands at $334.30 among brokerages that have released reports on the company in the past year.
Several research firms have recently expressed their views on American Express. Notably, Wells Fargo & Company raised its price target from $400.00 to $425.00, maintaining an “overweight” rating in a research note issued on Wednesday. Additionally, Wolfe Research initiated coverage with a “peer perform” rating on Monday, December 8th. On the other hand, Compass Point reaffirmed a “neutral” rating with a target price of $324.00 on October 20th. In a subsequent report, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on November 9th. Morgan Stanley also set a target price of $370.00 in its analysis released on Tuesday.
Institutional investors and hedge funds have been active in adjusting their stakes in American Express. Nordea Investment Management AB increased its holdings by 2.2% during the second quarter, now owning 2,267,377 shares valued at approximately $721.5 million. Meanwhile, Dempze Nancy E raised its stake by an impressive 210.2%, acquiring an additional 2,344 shares, bringing its total to 3,459 shares valued at around $1.1 million. Other notable changes include Reliant Investment Management LLC, which increased its holdings by 1.9%, and SLT Holdings LLC, which saw a significant increase of 31.3% in its stake during the same period. Overall, institutional investors and hedge funds now control 84.33% of American Express’s stock.
Current Stock Performance and Financial Outlook
As of Thursday, American Express shares opened at $376.40. The stock has experienced a 52-week low of $220.43 and a high of $387.49. With a market capitalization of $259.28 billion, the company maintains a PE ratio of 25.26 and a price-to-earnings-growth ratio of 1.80. Furthermore, American Express has a debt-to-equity ratio of 1.78 and current and quick ratios of 1.61 and 1.59, respectively. The company’s fifty-day moving average price is $360.14, while its two-hundred-day moving average price stands at $331.25.
American Express recently reported its earnings results on January 30th, posting a loss of ($11.85) earnings per share for the quarter. The company reported a net margin of 14.97% and a return on equity of 33.41%, with quarterly revenue amounting to ($17,139.00) million. Analysts predict that American Express will achieve an earnings per share of 15.33 for the current year.
Dividend Announcement and Company Background
In addition to its stock performance, American Express has announced a quarterly dividend of $0.82 per share, scheduled for payment on February 10th. Stockholders of record on January 2nd will receive this dividend, which represents an annualized dividend of $3.28 and a yield of 0.9%. The company’s dividend payout ratio currently stands at 22.01%.
Founded in 1850 as an express mail company, American Express has evolved into a major player in the financial services industry, primarily recognized for its payment card products and travel services. The company issues a variety of consumer and commercial charge and credit cards, operates a global card acceptance and processing network, and offers travel-related services and customer loyalty programs. Its product range caters to individuals, small businesses, and large corporations, including personal and corporate cards, as well as co-brand partnerships with airlines, hotels, and retailers.
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