Vanguard Group Inc. Boosts Stake in American Express to $13.43 Billion

Vanguard Group Inc. has increased its holdings in American Express (NYSE:AXP) by 0.2% during the fourth quarter, based on its latest 13F filing with the Securities and Exchange Commission. After adding 92,609 shares in this period, Vanguard now owns 45,237,993 shares of the well-known payment services company, representing approximately 6.42% of American Express's stock. The total value of this stake amounts to $13,426,184,000.

Regarding more changes in ownership, other hedge funds have also adjusted their positions in American Express. For instance, Prospera Private Wealth LLC purchased a new stake during the third quarter, estimated to be worth about $27,000. Additionally, True Wealth Design LLC significantly increased its position in the third quarter by 332.0%, now holding 108 shares valued at $29,000 after an acquisition of 83 additional shares. Curio Wealth LLC and Itau Unibanco Holding S.A. both entered new stakes in the fourth and third quarters, respectively, with values around $37,000 and $38,000. Similarly, Financial Life Planners took a new position valued at around $38,000 in the fourth quarter as well. It is noteworthy that institutional investors and hedge funds collectively own 84.33% of American Express's stock.

Analyst Ratings and Predictions

Various research firms have provided their insights on American Express. Bank of America has reduced its price target from $326.00 to $325.00, while maintaining a "neutral" rating. Conversely, JPMorgan Chase & Co. increased their target price from $301.00 to $307.00, also giving a "neutral" rating. StockNews.com downgraded its rating from "buy" to "hold," and Argus followed suit, changing its rating from "strong-buy" to "hold." On a more positive note, William Blair has reaffirmed an "outperform" rating. In total, two analysts have given a sell rating, while sixteen maintain a hold rating and nine have a buy rating on the stock. According to MarketBeat.com, American Express has a current average rating of "Hold", with a consensus price target set at $303.52.

Insider Trading Activity

In related news, insider Ravikumar Radhakrishnan sold 9,485 shares on February 5th at an average price of $319.17, resulting in a total transaction of approximately $3,027,327. The insider now holds 13,500 shares valued at around $4,308,795, following a decrease of 41.27% in their ownership. Another insider, Raymond Joabar, sold 15,179 shares on January 28th, also resulting in a significant decrease in ownership. This particular transaction totaled $4,765,295. It's important to mention that corporate insiders hold roughly 0.12% of American Express's stock.

American Express Stock Overview

On the trading day that followed, AXP shares opened at $270.48. The company has a debt-to-equity ratio of 1.64, a quick ratio of 1.57 and a current ratio of 1.58. In the past year, American Express shares have reached a low of $214.51 and a high of $326.28. The company’s market capitalization is approximately $190.02 billion, with a P/E ratio of 19.31, a PEG ratio of 1.41, and a beta value of 1.21. The average price over the last 50 days stands at $298.30, while the two-hundred-day moving average price is $288.55.

American Express shared its quarterly earnings report on January 24th, revealing earnings per share (EPS) of $3.04 for the quarter, which surpassed analysts' expectations of $3.00 by $0.04. The company posted a net margin of 15.36% and a return on equity (ROE) of 32.65%. Looking ahead, analysts forecast an average of 15.33 EPS for the current fiscal year.

Dividend Increase Announced

Recently, American Express also announced an increase in its quarterly dividend, which will be disbursed on May 9th. Shareholders on record as of April 4th will receive a dividend of $0.82, up from the previous $0.70 quarterly dividend. This equates to an annual dividend of $3.28 and presents a dividend yield of 1.21%, with a dividend payout ratio (DPR) of 23.41%.

About American Express

The American Express Company, along with its subsidiaries, functions as an integrated payments company across the globe including the United States, Europe, the Middle East, Africa, Asia Pacific, Australia, and Latin America. It operates through several key segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.

Vanguard, American, Express