American Express (NYSE:AXP) Hits New 12-Month High Following Better-Than-Expected Earnings

American Express (NYSE:AXP) hit a new 52-week high during mid-day trading on Monday following a stronger than expected earnings report. The company traded as high as $232.87 and last traded at $232.87, with a volume of 16780 shares traded. The stock had previously closed at $231.04.

The payment services company reported $3.33 earnings per share for the quarter, beating analysts’ consensus estimates of $2.97 by $0.36. American Express had a return on equity of 32.39% and a net margin of 14.50%. The company had revenue of $15.80 billion during the quarter, compared to analyst estimates of $15.79 billion. During the same quarter in the previous year, the company posted $2.40 EPS. American Express’s revenue for the quarter was up 10.6% on a year-over-year basis.

American Express Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 10th. Shareholders of record on Friday, April 5th will be given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 0.17%. The ex-dividend date is Thursday, April 4th. American Express’s payout ratio is 23.06%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on AXP. HSBC increased their price target on American Express from $232.00 to $239.00 and gave the company a “buy” rating in a report on Thursday, April 11th. Barclays reaffirmed an “equal weight” rating and issued a $221.00 target price (up from $220.00) on shares of American Express in a report on Tuesday, April 9th. Wells Fargo & Company raised their target price on American Express from $220.00 to $250.00 and gave the stock an “overweight” rating in a report on Wednesday, April 10th. Oppenheimer reaffirmed an “outperform” rating on shares of American Express in a report on Friday, April 5th. Finally, UBS Group raised their target price on American Express from $188.00 to $206.00 and gave the stock a “neutral” rating in a report on Monday, January 29th. Four analysts have rated the stock with a sell rating, ten have given a hold rating and nine have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $208.24.

Insider Activity

In related news, CEO Stephen J. Squeri sold 69,356 shares of American Express stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $213.02, for a total value of $14,774,215.12. Following the completion of the transaction, the chief executive officer now owns 122,158 shares in the company, valued at $26,022,097.16. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In related news, insider Laureen Seeger sold 84,420 shares of American Express stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $212.98, for a total value of $17,979,771.60. Following the completion of the transaction, the insider now owns 57,512 shares in the company, valued at $12,248,905.76. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Stephen J. Squeri sold 69,356 shares of American Express stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $213.02, for a total value of $14,774,215.12. Following the completion of the transaction, the chief executive officer now owns 122,158 shares of the company’s stock, valued at approximately $26,022,097.16. The disclosure for this sale can be found here. Insiders sold a total of 172,047 shares of company stock worth $36,528,388 over the last 90 days. Corporate insiders own 0.11% of the company’s stock.

Institutional Trading of American Express

Institutional investors have recently added to or reduced their stakes in the company. Scarborough Advisors LLC bought a new stake in American Express in the fourth quarter worth about $25,000. BKM Wealth Management LLC bought a new stake in American Express in the fourth quarter worth about $28,000. Tennessee Valley Asset Management Partners bought a new stake in American Express in the fourth quarter worth about $28,000. BluePath Capital Management LLC bought a new stake in American Express in the third quarter worth about $29,000. Finally, Pacifica Partners Inc. bought a new stake in American Express in the fourth quarter worth about $29,000. Institutional investors own 84.33% of the company’s stock.

American Express Trading Up 0.8 %

The company has a quick ratio of 1.63, a current ratio of 1.73 and a debt-to-equity ratio of 1.69. The firm has a market cap of $168.57 billion, a P/E ratio of 19.18, a P/E/G ratio of 1.32 and a beta of 1.23. The company’s 50 day simple moving average is $220.47 and its 200-day simple moving average is $189.56.

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.