Hodges Capital Management Reduces Its Stake in American Express

Hodges Capital Management Inc. has decreased its investment in American Express (NYSE:AXP) by 17.4% during the third quarter, as shown in its recent 13F filing with the Securities and Exchange Commission. After selling 2,823 shares, the fund now holds 13,407 shares of the payment services company's stock, with a total value of approximately $3.64 million.

Investment Changes by Other Funds

Several other institutional investors have also adjusted their positions in American Express. For instance, Prospera Private Wealth LLC made a new investment in the company during the third quarter, valued at about $27,000. Similarly, Kennebec Savings Bank acquired an estimated $29,000 stake. True Wealth Design LLC significantly increased its position by 332.0%, now owning 108 shares worth approximately $29,000 after an additional purchase of 83 shares. Itau Unibanco Holding S.A. invested $38,000 in American Express during the third quarter, and Mowery & Schoenfeld Wealth Management LLC bought in with a position valued at around $46,000. Notably, institutional investors hold 84.33% of American Express's stock.

Current Stock Performance

As of Friday, American Express shares opened at $303.99. The company's stock has a 50-day simple moving average of $283.49 and a 200-day simple moving average of $257.61. American Express currently has a market cap of $214.15 billion, a P/E ratio of 22.37, and it has experienced a one-year low of $167.57 and a high of $307.82. The company has a debt-to-equity ratio of 1.80 and a current ratio of 1.63.

Recent Earnings Report

American Express recently reported its quarterly earnings on October 18th, announcing an EPS of $3.49, exceeding analysts' expectations of $3.27 by $0.22. The company's revenue for the quarter was $16.64 billion, slightly below the estimated $16.68 billion but reflecting an 8.2% year-over-year increase. Analysts predict that American Express will achieve an EPS of 13.39 for the current fiscal year.

Dividend Announcement

Moreover, American Express declared a quarterly dividend of $0.70, which was paid on November 8th to stockholders who were registered by October 4th. This corresponds to an annualized dividend of $2.80, representing a yield of 0.92%. The current dividend payout ratio stands at 20.60%.

Insider Trading Activity

In related news, Vice Chairman Douglas E. Buckminster sold 13,111 shares of American Express on October 29th, totaling approximately $3.55 million at an average price of $270.98. Post-transaction, he retains 109,691 shares valued at about $29.72 million, marking a 10.68% decline in his holdings. Additionally, insider Anre D. Williams sold 77,887 shares at an average price of $270.26, resulting in a total sale of roughly $21.05 million. Following this sale, Williams now owns 111,656 shares worth around $30.18 million, reflecting a 41.09% reduction in his position. Over the past three months, insiders have sold 96,998 shares valued at approximately $26.42 million.

Analyst Ratings Update

Recent analyst ratings have reflected mixed sentiments towards American Express. HSBC downgraded it from "buy" to "hold," raising the price target from $265.00 to $270.00. Conversely, StockNews.com upgraded its rating from "hold" to "buy". Analysts at TD Cowen raised the price target from $260.00 to $268.00 while giving a "hold" rating. Barclays increased its target price from $250.00 to $257.00 with an "equal weight" rating. As a result, current data shows a consensus rating of "Hold" among analysts, with an average price target of $253.09.

American Express Overview

American Express Company operates across various sectors as an integrated payments firm in locations such as the United States, Europe, the Middle East, Africa, and more. It operates through distinct segments, including U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.

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