American Express Sees Unusually High Options Volume (NYSE:AXP)

American Express Company (NYSE:AXP) saw some unusual options trading on Wednesday. Stock investors purchased 36,110 call options on the stock. This represents an increase of 159% compared to the typical volume of 13,936 call options.

American Express Stock Performance

NYSE AXP traded down $3.35 on Wednesday, reaching $370.04. The stock had a trading volume of 1,457,042 shares, compared to its average volume of 2,787,776. The stock has a market cap of $254.90 billion, a P/E ratio of 24.83, a price-to-earnings-growth ratio of 1.79 and a beta of 1.14. American Express has a 12-month low of $220.43 and a 12-month high of $387.49. The business’s 50-day moving average price is $366.07 and its 200 day moving average price is $335.53. The company has a debt-to-equity ratio of 1.78, a quick ratio of 1.59 and a current ratio of 1.61.

American Express (NYSE:AXP) last announced its earnings results on Friday, January 30th. The payment services company reported ($11.85) EPS for the quarter. American Express had a net margin of 14.97% and a return on equity of 33.41%. The business had revenue of ($17,139.00) million during the quarter. As a group, equities analysts expect that American Express will post 15.33 earnings per share for the current year.

American Express Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 10th. Shareholders of record on Friday, January 2nd will be given a dividend of $0.82 per share. The ex-dividend date is Friday, January 2nd. This represents a $3.28 dividend on an annualized basis and a yield of 0.9%. American Express’s dividend payout ratio is presently 22.01%.

Insiders Place Their Bets

In other news, CMO Elizabeth Rutledge sold 50,000 shares of American Express stock in a transaction on Friday, October 31st. The stock was sold at an average price of $360.21, for a total transaction of $18,010,500.00. Following the transaction, the chief marketing officer owned 85,577 shares in the company, valued at $30,825,691.17. The trade was a 36.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Denise Pickett sold 5,000 shares of the company’s stock in a transaction dated Wednesday, October 22nd. The shares were sold at an average price of $350.73, for a total transaction of $1,753,650.00. Following the completion of the sale, the insider directly owned 7,726 shares of the company’s stock, valued at $2,709,739.98. This represents a 39.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 57,515 shares of company stock valued at $20,658,509 in the last three months. 0.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On American Express

Hedge funds have recently added to or reduced their stakes in the company. Valley Wealth Managers Inc. raised its position in shares of American Express by 153.3% during the 3rd quarter. Valley Wealth Managers Inc. now owns 76 shares of the payment services company’s stock worth $25,000 after purchasing an additional 46 shares during the last quarter. Briaud Financial Planning Inc purchased a new position in American Express during the second quarter worth $26,000. Access Investment Management LLC acquired a new position in shares of American Express in the second quarter worth $26,000. Manning & Napier Advisors LLC purchased a new stake in shares of American Express in the third quarter valued at $27,000. Finally, Guerra Advisors Inc acquired a new stake in shares of American Express during the third quarter valued at $28,000. Institutional investors and hedge funds own 84.33% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on AXP shares. UBS Group increased their price target on American Express from $330.00 to $340.00 and gave the stock a “neutral” rating in a report on Tuesday, October 7th. Compass Point reiterated a “neutral” rating and issued a $324.00 price objective on shares of American Express in a report on Monday, October 20th. DZ Bank raised shares of American Express from a “sell” rating to a “hold” rating and set a $340.00 price objective for the company in a research note on Tuesday, October 21st. Evercore ISI upped their target price on shares of American Express from $330.00 to $365.00 and gave the stock an “in-line” rating in a research note on Tuesday, September 30th. Finally, HSBC set a $295.00 target price on shares of American Express and gave the stock a “hold” rating in a report on Friday, October 10th. Nine investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $335.55.

About American Express

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.