Shares of the American Express Company (NYSE: AXP) have received a consensus recommendation of “Hold” from twenty-five analysts currently covering the stock, according to Marketbeat.com. The average one-year price target among brokerages is set at $334.30. Analysts have varied in their ratings, with one recommending a sell, sixteen advising to hold, and eight suggesting a buy.
Several financial firms have recently updated their positions on American Express. On Wednesday, Wells Fargo & Company raised its price objective from $400.00 to $425.00 while maintaining an “overweight” rating. Wolfe Research also initiated coverage, issuing a “peer perform” rating on the stock. Meanwhile, Compass Point reaffirmed a “neutral” rating with a price target of $324.00. On November 9, Wall Street Zen downgraded its rating from buy to hold, and Morgan Stanley set a target price of $370.00 for the shares.
Institutional Investment Trends
Institutional investors have shown active interest in American Express, adjusting their stakes in the company significantly. For instance, Nordea Investment Management AB increased its holdings by 2.2% in the second quarter, acquiring an additional 49,593 shares, bringing its total to 2,267,377 shares valued at $721.5 million.
Similarly, Dempze Nancy E boosted its stake by an impressive 210.2%, acquiring 2,344 shares during the quarter to reach a total of 3,459 shares worth $1.1 million. Reliant Investment Management LLC and SLT Holdings LLC also increased their stakes by 1.9% and 31.3%, respectively. Collectively, institutional investors and hedge funds now own 84.33% of the company’s stock.
Current Stock Performance
On Thursday, shares of American Express opened at $376.40. The stock has experienced fluctuations, with a 52-week low of $220.43 and a high of $387.49. American Express has a market capitalization of $259.28 billion and a price-to-earnings (PE) ratio of 25.26, alongside a price-to-earnings-growth (PEG) ratio of 1.80 and a beta of 1.14. The company maintains a debt-to-equity ratio of 1.78 and current and quick ratios of 1.61 and 1.59, respectively.
The company’s last earnings results were reported on January 30, 2024, revealing a loss per share of ($11.85) for the quarter. American Express reported a net margin of 14.97% and a return on equity of 33.41%, with total revenue amounting to $17.14 billion.
In addition to these developments, American Express announced a quarterly dividend of $0.82 per share, set to be paid on February 10, 2024, to stockholders of record on January 2, 2024. This dividend represents an annualized amount of $3.28 and a yield of 0.9%, with a dividend payout ratio currently at 22.01%.
Company Overview
Founded in 1850, American Express has grown from an express mail business into a prominent global financial services company. It is widely recognized for its payment card products, travel services, and merchant network. The core activities of American Express include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services along with customer loyalty programs.
The firm offers a variety of products tailored for individuals, small businesses, and large corporations, including personal and business cards, as well as partnerships with airlines, hotels, and retailers.
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