American Express (NYSE:AXP) Plans Quarterly Dividend of $0.10

American Express (NYSE:AXP) declared a quarterly dividend on Wednesday, March 6th, RTT News reports. Stockholders of record on Friday, April 5th will be given a dividend of 0.10 per share by the payment services company on Friday, May 10th. This represents a $0.40 annualized dividend and a dividend yield of 0.18%. The ex-dividend date is Thursday, April 4th.

American Express has increased its dividend payment by an average of 21.6% annually over the last three years and has raised its dividend annually for the last 2 consecutive years. American Express has a payout ratio of 16.3% meaning its dividend is sufficiently covered by earnings. Analysts expect American Express to earn $14.74 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 16.3%.

American Express Price Performance

Shares of NYSE:AXP opened at $225.58 on Wednesday. American Express has a fifty-two week low of $140.91 and a fifty-two week high of $231.69. The business has a 50-day simple moving average of $215.35 and a two-hundred day simple moving average of $182.67. The company has a debt-to-equity ratio of 1.71, a quick ratio of 1.63 and a current ratio of 1.63. The firm has a market cap of $163.29 billion, a price-to-earnings ratio of 20.12, a price-to-earnings-growth ratio of 1.28 and a beta of 1.23.

American Express (NYSE:AXPGet Free Report) last issued its earnings results on Friday, January 26th. The payment services company reported $2.62 earnings per share for the quarter, missing analysts’ consensus estimates of $2.64 by ($0.02). American Express had a return on equity of 30.99% and a net margin of 13.84%. The business had revenue of $15.80 billion during the quarter, compared to analysts’ expectations of $16 billion. During the same period last year, the firm posted $2.07 EPS. American Express’s quarterly revenue was up 11.4% compared to the same quarter last year. On average, analysts expect that American Express will post 12.83 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Laureen Seeger sold 84,420 shares of the company’s stock in a transaction that occurred on Monday, February 12th. The stock was sold at an average price of $212.98, for a total transaction of $17,979,771.60. Following the sale, the insider now directly owns 57,512 shares of the company’s stock, valued at approximately $12,248,905.76. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, CEO Stephen J. Squeri sold 69,356 shares of the stock in a transaction on Monday, February 12th. The stock was sold at an average price of $213.02, for a total transaction of $14,774,215.12. Following the sale, the chief executive officer now owns 122,158 shares in the company, valued at approximately $26,022,097.16. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Laureen Seeger sold 84,420 shares of the stock in a transaction on Monday, February 12th. The shares were sold at an average price of $212.98, for a total value of $17,979,771.60. Following the sale, the insider now owns 57,512 shares in the company, valued at approximately $12,248,905.76. The disclosure for this sale can be found here. Insiders sold 172,047 shares of company stock worth $36,528,388 in the last three months. 0.11% of the stock is owned by company insiders.

Institutional Trading of American Express

Several hedge funds and other institutional investors have recently bought and sold shares of AXP. Moneta Group Investment Advisors LLC raised its holdings in American Express by 118,198.3% during the 4th quarter. Moneta Group Investment Advisors LLC now owns 13,732,068 shares of the payment services company’s stock valued at $2,028,913,000 after buying an additional 13,720,460 shares during the period. Norges Bank purchased a new stake in American Express in the fourth quarter worth $911,554,000. Alliancebernstein L.P. increased its stake in American Express by 162.6% in the fourth quarter. Alliancebernstein L.P. now owns 1,961,999 shares of the payment services company’s stock worth $289,885,000 after purchasing an additional 1,214,731 shares during the period. Legal & General Group Plc increased its stake in American Express by 27.3% in the fourth quarter. Legal & General Group Plc now owns 5,272,934 shares of the payment services company’s stock worth $987,832,000 after purchasing an additional 1,132,318 shares during the period. Finally, CI Private Wealth LLC purchased a new stake in American Express in the fourth quarter worth $124,325,000. Hedge funds and other institutional investors own 84.33% of the company’s stock.

Analysts Set New Price Targets

A number of equities analysts have weighed in on AXP shares. Royal Bank of Canada boosted their target price on American Express from $220.00 to $226.00 and gave the stock an “outperform” rating in a research report on Monday, January 29th. BMO Capital Markets upped their price target on shares of American Express from $157.00 to $159.00 and gave the company an “underperform” rating in a research report on Monday, January 29th. Monness Crespi & Hardt assumed coverage on shares of American Express in a research report on Wednesday, December 20th. They set a “neutral” rating for the company. Robert W. Baird lowered shares of American Express from a “neutral” rating to an “underperform” rating and set a $190.00 price target for the company. in a research report on Monday, January 8th. Finally, DZ Bank lowered shares of American Express from a “hold” rating to a “sell” rating in a research report on Thursday, January 4th. Four analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $191.84.

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American Express Company Profile

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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.

Further Reading

Dividend History for American Express (NYSE:AXP)

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