Hodges Capital Management Reduces Stake in American Express

Hodges Capital Management Inc. has decreased its investment in American Express (NYSE: AXP) by 17.4% during the third quarter, according to its recent 13F filing with the Securities and Exchange Commission. After this adjustment, the fund holds 13,407 shares of the well-known payment services company, following the sale of 2,823 shares in the quarter. The holdings in American Express are valued at approximately $3.64 million based on the latest SEC filing.

Numerous other institutional investors and hedge funds have also adjusted their positions in American Express. Prospera Private Wealth LLC established a new stake in the third quarter, investing around $27,000. Similarly, Kennebec Savings Bank entered into a new position valued at about $29,000. True Wealth Design LLC significantly increased its investment in American Express by 332.0% during the period, now owning 108 shares worth $29,000, following the addition of 83 shares. Itau Unibanco Holding S.A. also acquired new shares valued at around $38,000, and Mowery & Schoenfeld Wealth Management LLC invested approximately $46,000 in a fresh position. Institutional investors collectively own 84.33% of American Express stock.

American Express Stock Movement

The stock price of American Express increased by 1.2% recently, opening at $303.99 on Friday. The company maintains a 50-day simple moving average of $283.49 and a 200-day simple moving average of $257.61. Current financial ratios reveal a debt-to-equity ratio of 1.80, along with a current and quick ratio of 1.63 each. Over the past year, American Express’s stock has fluctuated between a low of $167.57 and a high of $307.82, with the company boasting a market cap of $214.15 billion and a price-to-earnings (P/E) ratio of 22.37.

In its latest quarterly earnings report on October 18th, American Express announced earnings per share (EPS) of $3.49, surpassing analyst expectations of $3.27 by $0.22. The company's return on equity stood at 32.46%, with a net margin of 15.32%. Revenue for the quarter reached $16.64 billion, just below the expected $16.68 billion, yet reflecting an 8.2% increase year-over-year compared to the prior quarter's $3.30 EPS. Analysts project American Express to achieve an EPS of 13.39 for the current fiscal year.

Dividend Announcement

On another note, American Express recently declared a quarterly dividend payment, disbursed on November 8th to registered stockholders as of October 4th. Each shareholder received a $0.70 dividend, which translates to an annualized dividend of $2.80, yielding 0.92%. The current dividend payout ratio for American Express is 20.60%.

Insider Trading Activities

In insider trading news, Vice Chairman Douglas E. Buckminster sold 13,111 shares of American Express on October 29th at an average price of $270.98, totaling about $3.55 million. Post-transaction, Buckminster retains 109,691 shares, now valued at roughly $29.72 million, reflecting a 10.68% reduction in his holdings. Similarly, insider Anre D. Williams disposed of 77,887 shares on October 22nd, generating approximately $21.05 million at an average price of $270.26. Following this sale, Williams holds 111,656 shares valued at around $30.18 million, marking a 41.09% decrease in ownership. In total, insiders have sold 96,998 shares worth $26.42 million in the last three months, with corporate insiders holding only 0.12% of American Express’s stock.

Changes in Analyst Ratings

Recent assessments from research analysts regarding American Express shares have resulted in varied recommendations. On October 8th, HSBC downgraded the stock from "buy" to "hold", raising the price target from $265 to $270. StockNews.com upgraded American Express from "hold" to "buy" on December 3rd. TD Cowen increased their price target from $260 to $268 while maintaining a “hold” rating on October 21st. Barclays also adjusted their price target from $250 to $257, labeling the stock as “equal weight.” Conversely, JPMorgan Chase & Co. changed their rating from “overweight” to “neutral”, increasing the price objective from $268 to $286 on October 7th. Currently, four analysts rate the stock as a “sell,” thirteen as “hold,” and nine analysts have issued “buy” ratings. Data from MarketBeat indicates a consensus rating of “hold” with an average target price of $253.09.

Overview of American Express

American Express Company operates primarily as an integrated payments firm, with operations spanning the United States, Europe, the Middle East, Africa, and beyond. The company segments its operations into four main categories: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.

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