American Express (NYSE:AXP) Sets New 1-Year High – Should You Buy?

Shares of American Express (NYSE:AXP) reached a new 52-week high on Friday . The company 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 equities research analysts recently issued reports on AXP shares. JPMorgan Chase & Co. upped their price target on shares of American Express from $240.00 to $268.00 and gave the company an “overweight” rating in a research note on Monday, July 8th. Jefferies Financial Group increased their target price on American Express from $225.00 to $235.00 and gave the stock a “hold” rating in a research note on Tuesday, July 9th. Monness Crespi & Hardt boosted their target price on shares of American Express from $260.00 to $265.00 and gave the company a “buy” rating in a research note on Monday, July 22nd. Compass Point started coverage on American Express in a report on Tuesday, July 16th. They issued a “neutral” rating and a $260.00 price target for the company. Finally, Bank of America upped their price objective on shares of American Express from $263.00 to $265.00 and gave the stock a “neutral” rating in a research note on Tuesday, September 17th. Three 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, American Express currently has an average rating of “Hold” and an average price target of $231.43.

American Express Stock Performance

The stock has a market capitalization of $198.51 billion, a price-to-earnings ratio of 22.73, a P/E/G ratio of 1.48 and a beta of 1.21. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 1.74. The firm has a 50-day moving average of $253.91 and a 200-day moving average of $240.48.

American Express (NYSE:AXP) last released its quarterly earnings data on Friday, July 19th. The payment services company reported $3.49 EPS for the quarter, beating the consensus estimate of $3.26 by $0.23. The business had revenue of $16.33 billion for the quarter, compared to the consensus estimate of $16.60 billion. American Express had a net margin of 15.53% and a return on equity of 32.94%. The business’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the prior year, the firm earned $2.89 EPS. As a group, sell-side analysts predict that American Express will post 13.13 earnings per share for the current year.

American Express Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 8th. Shareholders of record on Friday, October 4th will be issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.01%. The ex-dividend date of this dividend is Friday, October 4th. American Express’s payout ratio is presently 23.06%.

Hedge Funds Weigh In On American Express

Several institutional investors have recently made changes to their positions in the company. Scarborough Advisors LLC purchased a new position in American Express during the fourth quarter valued at $25,000. Vermillion & White Wealth Management Group LLC acquired a new stake in shares of American Express in the fourth quarter valued at about $29,000. Game Plan Financial Advisors LLC lifted its stake in shares of American Express by 62.5% in the first quarter. Game Plan Financial Advisors LLC now owns 130 shares of the payment services company’s stock worth $30,000 after buying an additional 50 shares in the last quarter. Creekmur Asset Management LLC acquired a new position in American Express during the fourth quarter worth about $32,000. Finally, Transcendent Capital Group LLC purchased a new stake in American Express in the 4th quarter valued at $37,000. 84.33% of the stock is owned by hedge funds and other institutional investors.

American Express Company Profile

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.