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
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