American Express (AXP) – Investment Analysts’ Recent Ratings Updates

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Several analysts have recently updated their ratings and price targets for American Express (NYSE: AXP):

  • 11/5/2018 – American Express was given a new $114.00 price target on by analysts at Oppenheimer Holdings Inc.. They now have a “buy” rating on the stock.
  • 10/20/2018 – American Express was given a new $131.00 price target on by analysts at Stephens. They now have a “buy” rating on the stock.
  • 10/19/2018 – American Express had its price target raised by analysts at BMO Capital Markets from $106.00 to $110.00. They now have a “market perform” rating on the stock.
  • 10/19/2018 – American Express had its price target raised by analysts at Barclays PLC from $113.00 to $115.00. They now have a “hold” rating on the stock.
  • 10/19/2018 – American Express had its price target raised by analysts at Morgan Stanley from $109.00 to $115.00. They now have an “equal weight” rating on the stock.
  • 10/19/2018 – American Express was given a new $125.00 price target on by analysts at Bank of America Corp. They now have a “buy” rating on the stock.
  • 10/19/2018 – American Express had its price target raised by analysts at Nomura from $128.00 to $130.00. They now have a “buy” rating on the stock.
  • 10/18/2018 – American Express had its “buy” rating reaffirmed by analysts at Oppenheimer Holdings Inc.. They now have a $114.00 price target on the stock.
  • 10/9/2018 – American Express was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $120.00 price target on the stock. According to Zacks, “American Express’ shares have outperformed its industry in a year's time. A solid market position, strength in card business and significant opportunities from the secular shift toward electronic payments are growth drivers. It continues to witness strong loan growth and credit metrics. A number of growth initiatives such as new products, enhancements of features on existing ones, changes to pricing, seem to be bearing fruit now. Its international business seems attractive. However, it is faced with an increase in reward expense led by enhancements to its U.S. platinum products. Cost of card member services has been increasing over the past three years and continues to do so this year, reflecting higher engagement levels across its premium travel services. It is also witnessing an increase in provision of loan losses for the past two and half years.”
  • 10/1/2018 – American Express had its price target raised by analysts at Wells Fargo & Co from $115.00 to $122.00. They now have an “outperform” rating on the stock.
  • 9/20/2018 – American Express was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “American Express is faced with an increase in reward expense led by enhancements to its U.S. platinum products. Also, cost of card member services has been increasing over the past three years and continues to do so this year, reflecting higher engagement levels across its premium travel services. Increase in marketing expense will also push up operating expense. It is also witnessing an increase in provision of loan losses for the past two and half years. Given continued strong growth in the loan portfolio and a higher lending write-off rate, a continued increase in provisions will dent the company’s cash and cash equivalents. However, it continues to witness strong loan growth and credit metrics. A solid market position, strength in card business and significant opportunities from the secular shift toward electronic payments are growth drivers. Its shares have outperformed the industry's growth year to date.”
  • 9/17/2018 – American Express was upgraded by analysts at Stephens from an “equal weight” rating to an “overweight” rating. They now have a $110.50 price target on the stock.

NYSE:AXP opened at $104.98 on Wednesday. American Express has a twelve month low of $87.54 and a twelve month high of $111.77. The company has a debt-to-equity ratio of 2.58, a current ratio of 1.88 and a quick ratio of 1.88. The stock has a market cap of $88.60 billion, a PE ratio of 17.88, a price-to-earnings-growth ratio of 1.40 and a beta of 1.06.

American Express (NYSE:AXP) last posted its quarterly earnings data on Thursday, October 18th. The payment services company reported $1.88 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.77 by $0.11. American Express had a net margin of 9.51% and a return on equity of 31.26%. The company had revenue of $10.14 billion during the quarter, compared to analyst estimates of $10.06 billion. During the same quarter last year, the firm posted $1.50 EPS. The business’s revenue for the quarter was up 9.2% on a year-over-year basis. Equities research analysts expect that American Express will post 7.38 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 9th. Stockholders of record on Friday, October 5th will be given a dividend of $0.39 per share. This is a positive change from American Express’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend is Thursday, October 4th. This represents a $1.56 annualized dividend and a dividend yield of 1.49%. American Express’s dividend payout ratio (DPR) is 26.58%.

In other American Express news, Chairman Stephen J. Squeri sold 12,500 shares of the firm’s stock in a transaction dated Thursday, November 1st. The shares were sold at an average price of $103.84, for a total value of $1,298,000.00. Following the completion of the transaction, the chairman now directly owns 209,957 shares in the company, valued at $21,801,934.88. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, major shareholder Ventures Fund Vii L.P. Vivo bought 20,142,123 shares of the firm’s stock in a transaction on Thursday, August 30th. The stock was purchased at an average price of $0.17 per share, with a total value of $3,424,160.91. The disclosure for this purchase can be found here. Company insiders own 0.20% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in AXP. Destination Wealth Management lifted its position in shares of American Express by 165.4% in the second quarter. Destination Wealth Management now owns 1,059 shares of the payment services company’s stock worth $104,000 after purchasing an additional 660 shares in the last quarter. Tuttle Tactical Management purchased a new stake in shares of American Express in the second quarter worth approximately $105,000. Lenox Wealth Advisors LLC lifted its position in shares of American Express by 1,173.8% in the third quarter. Lenox Wealth Advisors LLC now owns 1,070 shares of the payment services company’s stock worth $114,000 after purchasing an additional 986 shares in the last quarter. Sageworth Trust Co lifted its position in shares of American Express by 455.6% in the third quarter. Sageworth Trust Co now owns 1,250 shares of the payment services company’s stock worth $133,000 after purchasing an additional 1,025 shares in the last quarter. Finally, Kiley Juergens Wealth Management LLC purchased a new stake in shares of American Express in the second quarter worth approximately $148,000. Institutional investors own 82.98% of the company’s stock.

American Express Company, together with its subsidiaries, provides charge and credit payment card products and travel-related services to consumers and businesses worldwide. It operates through four segments: U.S. Consumer Services, International Consumer and Network Services, Global Commercial Services, and Global Merchant Services.

Further Reading: Institutional Investors

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