Sumitomo Mitsui Trust Group Inc. cut its stake in shares of American Express Company (NYSE:AXP – Free Report) by 2.7% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 1,362,280 shares of the payment services company’s stock after selling 38,104 shares during the period. Sumitomo Mitsui Trust Group Inc.’s holdings in American Express were worth $414,269,000 as of its most recent SEC filing.
Other institutional investors also recently made changes to their positions in the company. BlackRock Inc. acquired a new position in American Express in the second quarter valued at $14,208,662,000. State Street Corp grew its position in American Express by 40.2% during the second quarter. State Street Corp now owns 40,967,262 shares of the payment services company’s stock valued at $13,857,176,000 after acquiring an additional 11,739,541 shares during the period. Bank of America Corp DE increased its stake in American Express by 8.4% during the second quarter. Bank of America Corp DE now owns 7,969,555 shares of the payment services company’s stock worth $2,695,702,000 after acquiring an additional 614,981 shares during the last quarter. Corient Private Wealth LP increased its stake in American Express by 492.2% during the second quarter. Corient Private Wealth LP now owns 4,771,292 shares of the payment services company’s stock worth $1,613,890,000 after acquiring an additional 3,965,582 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in American Express during the second quarter worth about $1,263,787,000. 84.33% of the stock is owned by hedge funds and other institutional investors.
American Express Trading Down 1.4%
Shares of AXP opened at $319.03 on Friday. American Express Company has a 12 month low of $290.97 and a 12 month high of $387.49. The stock’s 50-day moving average is $317.18 and its two-hundred day moving average is $326.44. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.58 and a quick ratio of 1.54. The stock has a market cap of $213.93 billion, a PE ratio of 17.96, a P/E/G ratio of 1.35 and a beta of 1.08.
American Express (NYSE:AXP – Get Free Report) last posted its earnings results on Friday, October 23rd. The payment services company reported $4.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.50 by $0.18. The business had revenue of $20.06 billion during the quarter, compared to analyst estimates of $20.12 billion. American Express had a return on equity of 34.19% and a net margin of 15.80%. The company’s revenue for the quarter was up 8.9% compared to the same quarter last year. During the same quarter last year, the firm earned $4.14 earnings per share. American Express has set its FY 2026 guidance at 17.600-17.900 EPS. Equities analysts forecast that American Express Company will post 17.88 earnings per share for the current fiscal year.
American Express Dividend Announcement
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 10th. Shareholders of record on Friday, October 9th will be given a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend is Friday, October 9th. American Express’s dividend payout ratio is presently 21.40%.
Key American Express News
Here are the key news stories impacting American Express this week:
- Positive Sentiment: American Express introduced a new redemption option allowing eligible consumer and business cash-back cardmembers to deposit Reward Dollars into American Express High Yield Savings Accounts and Business Checking Accounts. The feature could improve customer retention, deepen relationships across the company’s card and banking products, and support deposit growth. American Express Connects Cash Back to High Yield Savings Accounts and Business Checking Accounts
- Positive Sentiment: The launch of Canada’s first Hilton Honors American Express co-branded card expands the company’s international partnership with Hilton and could generate additional spending, fees, and customer acquisition. American Express and Hilton Launch Canada’s First Hilton Honors Credit Card
- Positive Sentiment: American Express benefited from positive payments-sector sentiment after Mastercard reported better-than-expected revenue and earnings, although the effect may be temporary. Mastercard Rises on Revenue and EPS Beat
- Neutral Sentiment: American Express issued $1.5 billion of fixed-to-floating-rate notes carrying a 5.447% rate. The financing provides capital, but increases interest expense and leverage exposure. American Express Issues New Fixed-to-Floating Rate Notes
- Neutral Sentiment: Analyst coverage remains mixed. Commentary favors Mastercard for faster growth, more diversified revenue, and lower credit risk, while other coverage highlights AXP’s strong profitability, revenue growth, share repurchases, and Berkshire Hathaway’s sizable stake.
- Negative Sentiment: A U.S. Bank risk executive is reportedly moving to American Express as the company deals with regulatory penalties related to anti-money-laundering compliance failures. The leadership addition may strengthen risk controls, but the penalties and compliance scrutiny create reputational and cost risks. U.S. Bank Risk Chief Heads to Amex
- Negative Sentiment: Relative-value analysis argues that Mastercard currently offers better growth prospects and lower credit risk than American Express, potentially limiting investor enthusiasm for AXP despite its lower valuation.
Analyst Upgrades and Downgrades
A number of brokerages have recently issued reports on AXP. Barclays dropped their target price on shares of American Express from $342.00 to $340.00 and set an “equal weight” rating for the company in a research report on Monday, October 26th. William Blair restated an “outperform” rating on shares of American Express in a report on Friday, October 23rd. BMO Capital Markets initiated coverage on shares of American Express in a research report on Thursday, October 8th. They set an “outperform” rating and a $380.00 price target on the stock. BTIG Research decreased their price objective on shares of American Express from $315.00 to $230.00 and set a “sell” rating for the company in a research note on Monday, September 7th. Finally, HSBC boosted their price objective on shares of American Express from $312.00 to $329.00 and gave the stock a “hold” rating in a research note on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $365.19.
Get Our Latest Research Report on AXP
About American Express
American Express Company is a global financial services company that provides payment, lending, travel and expense management products and services. Its offerings include consumer and small-business charge and credit cards, corporate payment programs, business financing solutions, deposit products and digital payment services.
The company operates an integrated payments network that connects card members, merchants and financial institutions. American Express also provides merchant acquisition and payment processing services, data and analytics, fraud prevention tools, and customer loyalty programs.
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