American Express (NYSE:AXP) Sets New 12-Month High – Here’s Why

American Express (NYSE:AXP) shares reached a new 52-week high during trading on Friday . The stock traded as high as $273.21 and last traded at $271.80, with a volume of 275357 shares changing hands. The stock had previously closed at $268.59.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on AXP. Citigroup started coverage on American Express in a research note on Monday, June 10th. They set a “neutral” rating and a $250.00 price target for the company. BTIG Research assumed coverage on American Express in a research report on Friday, June 7th. They issued a “neutral” rating for the company. Compass Point initiated coverage on American Express in a report on Tuesday, July 16th. They set a “neutral” rating and a $260.00 price objective for the company. Royal Bank of Canada raised their target price on American Express from $265.00 to $267.00 and gave the company an “outperform” rating in a report on Monday, July 22nd. Finally, Jefferies Financial Group raised their target price on American Express from $225.00 to $235.00 and gave the company a “hold” rating in a report on Tuesday, July 9th. Three research analysts have rated the stock with a sell rating, thirteen have given a hold rating and eleven have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $231.43.

American Express Price Performance

The stock’s 50-day moving average is $253.31 and its 200 day moving average is $239.97. The company has a market cap of $195.20 billion, a PE ratio of 22.14, a PEG ratio of 1.48 and a beta of 1.21. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.66 and a quick ratio of 1.66.

American Express (NYSE:AXP) last posted its quarterly earnings results on Friday, July 19th. The payment services company reported $3.49 earnings per share for the quarter, topping analysts’ consensus estimates of $3.26 by $0.23. The firm had revenue of $16.33 billion for the quarter, compared to analyst estimates of $16.60 billion. American Express had a net margin of 15.53% and a return on equity of 32.94%. American Express’s quarterly revenue was up 9.2% on a year-over-year basis. During the same period in the previous year, the business posted $2.89 earnings per share. On average, equities analysts anticipate that American Express will post 13.13 earnings per share for the current fiscal year.

American Express Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 8th. Stockholders of record on Friday, October 4th will be issued a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 1.03%. The ex-dividend date is Friday, October 4th. American Express’s payout ratio is currently 23.06%.

Institutional Investors Weigh In On American Express

Hedge funds and other institutional investors have recently modified their holdings of the stock. Alphinity Investment Management Pty Ltd bought a new stake in American Express in the first quarter valued at about $433,709,000. Public Employees Retirement Association of Colorado raised its stake in American Express by 924.2% during the 2nd quarter. Public Employees Retirement Association of Colorado now owns 851,431 shares of the payment services company’s stock valued at $197,149,000 after purchasing an additional 768,301 shares during the period. Price T Rowe Associates Inc. MD boosted its position in American Express by 8.5% during the first quarter. Price T Rowe Associates Inc. MD now owns 8,447,441 shares of the payment services company’s stock valued at $1,923,399,000 after purchasing an additional 662,382 shares during the last quarter. M&G Plc bought a new position in American Express during the first quarter valued at about $114,990,000. Finally, Canada Pension Plan Investment Board boosted its holdings in shares of American Express by 71.9% during the 2nd quarter. Canada Pension Plan Investment Board now owns 1,164,098 shares of the payment services company’s stock worth $269,547,000 after buying an additional 486,755 shares during the period. 84.33% of the stock is currently owned by institutional investors and hedge funds.

About American Express

American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.