Cullinan Associates Inc. has reduced its stake in American Express Company (NYSE:AXP) by 13.1% during the third quarter, as revealed in its recent filing with the Securities and Exchange Commission (SEC). After selling 7,192 shares, the firm now holds 47,613 shares of the payment services giant, which constitutes about 1.0% of its overall investment portfolio. As of the end of the reporting period, Cullinan Associates’ holdings in American Express were valued at approximately $15,815,000.
Several institutional investors have also adjusted their positions in American Express. Notably, Nordea Investment Management AB increased its stake by 2.2% during the second quarter, now owning 2,267,377 shares valued at $721,525,000 after acquiring an additional 49,593 shares. Sumitomo Mitsui Trust Group Inc. raised its holdings by 0.3% in the third quarter, amassing 1,598,743 shares worth $531,038,000 after purchasing 4,080 additional shares. Meanwhile, Dempze Nancy E expanded its stake by an impressive 210.2% during the second quarter, bringing its total to 3,459 shares valued at $1,103,000.
In addition, Reliant Investment Management LLC grew its holdings by 1.9%, now owning 26,189 shares valued at $8,354,000. ZEGA Investments LLC also entered the fray, purchasing a new stake in American Express worth $1,080,000. Overall, institutional investors control approximately 84.33% of American Express’s stock.
Recent Analyst Ratings and Company Performance
American Express has recently been the subject of multiple analyst reviews, affecting its stock outlook. Wells Fargo & Company raised its price target from $400.00 to $425.00 and assigned an “overweight” rating in a research note dated December 17, 2024. Cowen reaffirmed a “hold” rating, while Compass Point maintained a “neutral” stance with a target price of $324.00. Goldman Sachs Group reiterated a “buy” rating, setting a price target of $420.00.
As of now, nine research analysts have assigned a Buy rating to American Express, while seventeen have given it a Hold rating, and one has issued a Sell rating. According to MarketBeat, the consensus rating for the company stands at “Hold,” with an average target price of $352.82.
American Express’s stock opened at $357.85 recently, with a market capitalization of $246.50 billion. The stock has fluctuated between a 12-month low of $220.43 and a high of $387.49. It currently has a price-to-earnings (P/E) ratio of 24.02, a price-to-earnings-growth (PEG) ratio of 1.51, and a beta of 1.15.
Financial Results and Future Outlook
American Express’s financial performance has raised eyebrows among investors. The company reported earnings of (11.85) earnings per share (EPS) for its most recent quarter, missing the consensus estimate of $3.56 by a substantial margin of $15.41. Furthermore, the company recorded revenue of ($17,139.00 million) for the quarter, falling short of analysts’ expectations of $18.91 billion.
Looking ahead, analysts predict that American Express will post earnings of 15.33 per share for the current fiscal year. Investors will also be watching for the upcoming quarterly dividend announcement, scheduled for February 10, 2024. Shareholders on record as of January 2, 2024, will receive a dividend payout of $0.82 per share, representing an annualized dividend of $3.28 and a yield of 0.9%. The company’s dividend payout ratio currently stands at 22.01%.
American Express continues to be a significant player in the global financial services sector, known for its payment card products and travel-related services. Founded in 1850, the company has evolved into a major issuer of consumer and commercial charge and credit cards, alongside a robust network for card acceptance and processing.
