Fintel reports that on July 24, 2023, Piper Sandler downgraded their outlook for American Express (NYSE:AXP) from Neutral to Underweight.
Analyst Price Forecast Suggests 9.96% Upside
As of July 6, 2023, the average one-year price target for American Express is 187.17. The forecasts range from a low of 147.46 to a high of $231.00. The average price target represents an increase of 9.96% from its latest reported closing price of 170.22.
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The projected annual revenue for American Express is 59,192MM, an increase of 11.66%. The projected annual non-GAAP EPS is 10.65.
American Express Declares $0.60 Dividend
On May 3, 2023 the company declared a regular quarterly dividend of $0.60 per share ($2.40 annualized). Shareholders of record as of July 7, 2023 will receive the payment on August 10, 2023. Previously, the company paid $0.60 per share.
At the current share price of $170.22 / share, the stock’s dividend yield is 1.41%.
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=236).
The current dividend yield is 0.12 standard deviations above 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 is the Fund Sentiment?
There are 3147 funds or institutions reporting positions in American Express. This is an increase of 82 owner(s) or 2.68% in the last quarter. Average portfolio weight of all funds dedicated to AXP is 0.52%, a decrease of 0.79%. Total shares owned by institutions increased in the last three months by 0.61% to 699,228K shares. The put/call ratio of AXP is 1.23, indicating a bearish outlook.
What are Other Shareholders Doing?
Berkshire Hathaway holds 151,611K shares representing 20.40% ownership of the company. No change in the last quarter.
Wellington Management Group Llp holds 22,001K shares representing 2.96% ownership of the company. In it’s prior filing, the firm reported owning 21,818K shares, representing an increase of 0.83%. The firm increased its portfolio allocation in AXP by 11.26% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 17,274K shares representing 2.32% ownership of the company. In it’s prior filing, the firm reported owning 17,034K shares, representing an increase of 1.39%. The firm increased its portfolio allocation in AXP by 4.54% over the last quarter.
Jpmorgan Chase holds 16,336K shares representing 2.20% ownership of the company. In it’s prior filing, the firm reported owning 16,489K shares, representing a decrease of 0.93%. The firm increased its portfolio allocation in AXP by 2.21% over the last quarter.
VFINX – Vanguard 500 Index Fund Investor Shares holds 13,892K shares representing 1.87% ownership of the company. In it’s prior filing, the firm reported owning 13,819K shares, representing an increase of 0.52%. The firm increased its portfolio allocation in AXP by 4.08% over the last quarter.
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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