On February 8, 2023, Morgan Stanley upgraded their outlook for American Express from Equal-Weight to Overweight.
Analyst Price Forecast Suggests 5.66% Upside
As of February 9, 2023, the average one-year price target for American Express is $189.13. The forecasts range from a low of $150.49 to a high of $231.00. The average price target represents an increase of 5.66% from its latest reported closing price of $179.00.
The projected annual revenue for American Express is $59,192MM, an increase of 16.80%. The projected annual EPS is $10.65, an increase of 8.06%.
American Express Declares $0.52 Dividend
On December 7, 2022 the company declared a regular quarterly dividend of $0.52 per share ($2.08 annualized). Shareholders of record as of January 5, 2023 will receive the payment on February 10, 2023. Previously, the company paid $0.52 per share.
At the current share price of $179.00 / share, the stock’s dividend yield is 1.16%. Looking back five years and taking a sample every week, the average dividend yield has been 1.38%, the lowest has been 0.94%, and the highest has been 2.49%. The standard deviation of yields is 0.25 (n=237).
The current dividend yield is 0.88 standard deviations below the historical average.
Additionally, the company’s dividend payout ratio is 0.24. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.40%, demonstrating that it has increased its dividend over time.
What are large shareholders doing?
Berkshire Hathaway holds 151,611K shares representing 20.41% ownership of the company. No change in the last quarter.
Wellington Management Group Llp holds 23,685K shares representing 3.19% ownership of the company. In it’s prior filing, the firm reported owning 23,881K shares, representing a decrease of 0.83%. The firm increased its portfolio allocation in AXP by 2.09% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 16,771K shares representing 2.26% ownership of the company. In it’s prior filing, the firm reported owning 16,632K shares, representing an increase of 0.83%. The firm increased its portfolio allocation in AXP by 2.29% over the last quarter.
Jpmorgan Chase & holds 16,087K shares representing 2.17% ownership of the company. In it’s prior filing, the firm reported owning 15,547K shares, representing an increase of 3.36%. The firm increased its portfolio allocation in AXP by 3.82% over the last quarter.
Fisher Asset Management holds 14,511K shares representing 1.95% ownership of the company. In it’s prior filing, the firm reported owning 15,039K shares, representing a decrease of 3.63%. The firm decreased its portfolio allocation in AXP by 4.70% over the last quarter.
What is the Fund Sentiment?
There are 3024 funds or institutions reporting positions in American Express. This is a decrease of 6 owner(s) or 0.20% in the last quarter. Average portfolio weight of all funds dedicated to AXP is 0.50%, a decrease of 0.10%. Total shares owned by institutions decreased in the last three months by 0.31% to 700,005K shares. The put/call ratio of AXP is 1.04, indicating a bearish outlook.
American Express Background Information
(This description is provided by the company.)
American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success.
This article originally appeared on Fintel
Credit Card Companies Are Doing Something Nuts
Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.
It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.
We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.