American Express Company (NYSE: AXP) has experienced a significant boost in its stakeholder profile, as Elefante Mark B increased its holdings by an impressive 72.8% during the third quarter of 2023. According to the most recent 13F filing with the Securities and Exchange Commission, Elefante Mark B acquired an additional 1,899 shares, bringing its total to 4,508 shares, valued at approximately $1,497,000 by the close of the reporting period.
Several institutional investors have also adjusted their positions in American Express. Notably, Valley Wealth Managers Inc. raised its holdings by 153.3%, acquiring 76 shares worth about $25,000 after adding 46 shares during the last quarter. Other firms, including Briaud Financial Planning Inc. and Access Investment Management LLC, each purchased new positions valued at around $26,000. Manning & Napier Advisors LLC and Guerra Advisors Inc. also made new investments in American Express, with stakes valued at approximately $27,000 and $28,000, respectively. Currently, institutional investors hold 84.33% of American Express stock.
Insider Transactions and Company Performance
In related news, substantial insider trading activity has been reported. On February 5, 2024, insider Anna Marrs sold 27,425 shares at an average price of $350.01, totaling nearly $9.6 million. After the sale, Marrs retained 20,394 shares, valued at approximately $7.1 million, reflecting a 57.35% reduction in her ownership. Another insider, Denise Pickett, sold 23,385 shares on the same day, generating just over $8.3 million and reducing her stake by 75.10%.
Over the past three months, insiders have offloaded a total of 73,944 shares worth approximately $26.1 million. Corporate insiders currently own only 0.20% of the company’s stock.
On the financial front, American Express reported its quarterly earnings on January 30, 2024. The company posted earnings of $3.53 per share, slightly below the consensus estimate of $3.54. Revenue for the quarter was approximately $17.1 billion, falling short of expectations of $18.91 billion. Despite the miss, American Express noted a 10.5% year-over-year increase in revenue, driven by a net margin of 15.00% and a return on equity of 33.49%.
Dividends and Market Outlook
American Express recently declared a quarterly dividend of $0.82 per share, which was paid on February 10, 2024. Shareholders of record as of January 2, 2024 received this payment, reflecting an annualized dividend of $3.28 and a yield of 1.0%. The company’s dividend payout ratio currently stands at 21.31%.
Market analysts have varied opinions on American Express. Recent reports have seen adjustments in ratings, with Wall Street Zen downgrading from a “buy” to a “hold.” In contrast, Evercore has set a price target of $393.00. Analysts at JPMorgan Chase & Co. and Truist Financial have also revised their targets, with JPMorgan reducing its estimate from $385.00 to $375.00 while maintaining a “neutral” rating. Overall, nine analysts rate American Express as a “buy,” while fifteen recommend holding, resulting in a consensus rating of “hold” with an average target price of $352.73.
Founded in 1850, American Express has evolved from an express mail business to a leading global financial services firm, recognized for its payment card products and travel services. The company’s core operations include issuing various charge and credit cards, operating a global acceptance network, and providing customer loyalty programs. With a market capitalization of approximately $234.77 billion, American Express continues to play a crucial role in the financial services landscape.
