Stephen Squeri, Chairman and CEO of American Express Co. (NYSE:AXP), recently executed a series of stock transactions involving the company's common stock. On November 7, Squeri sold shares totaling approximately $48.9 million, with sale prices ranging from $285.49 to $288.05 per share.
Additionally, Squeri acquired shares through transactions that brought in a total value of $17 million, with acquisition prices ranging from $97.98 to $100.96 per share. Following these transactions, Squeri holds a significant number of shares directly and indirectly, reflecting his ongoing investment in the company.
In other recent news, significant developments have unfolded in the financial performance and strategic moves of American Express. The company reported strong third-quarter results, with earnings per share (EPS) reaching $3.49 and revenues totaling $16.6 billion, marking an 8% increase year-over-year. The full-year EPS guidance was also raised to between $13.75 and $14.05.
Analysts have provided mixed reviews on the company's performance. TD Cowen maintained a Hold rating on American Express shares, increasing the stock's price target to $268, indicating confidence in the company despite a shortfall in revenue. Baird, on the other hand, raised its stock price target to $240 but kept an Underperform rating, citing concerns about revenue growth and future outlook. BTIG reiterated its Sell rating, maintaining a $230.00 price target and expressing skepticism about the company's ability to achieve its 10% year-over-year revenue growth target, referring to it as "aspirational."
In terms of strategic moves, American Express has expanded its ownership in the credit card industry by acquiring UBS's 50% stake in Swisscard, a joint venture between the two companies. The terms of the transaction have not been disclosed, but this significant shift in ownership is part of UBS's strategy to reshape its business following the acquisition of Credit Suisse assets. These recent developments provide insights into the evolving landscape of the financial industry and the strategic moves of American Express.
InvestingPro Insights
American Express Co. (NYSE:AXP) has been demonstrating strong financial performance, aligning with CEO Stephen Squeri's recent stock transactions. According to InvestingPro data, the company's market capitalization stands at an impressive $204.13 billion, reflecting its substantial presence in the financial services sector.
The company's robust financial health is further evidenced by its revenue growth of 8.94% over the last twelve months as of Q3 2024, indicating a steady expansion of its business operations. This growth trend is complemented by a healthy gross profit margin of 55.7% for the same period, showcasing American Express's ability to maintain profitability while scaling its operations.
InvestingPro Tips highlight American Express's strong market position and financial stability. The company has maintained dividend payments for 54 consecutive years, demonstrating a long-term commitment to shareholder returns. This consistency is particularly relevant in light of Squeri's recent stock transactions, as it underscores the company's reliable performance over time.
Moreover, American Express is trading near its 52-week high, with a price at 97.53% of its 52-week peak. This performance is reflected in the company's impressive 92.04% price total return over the past year, significantly outperforming the broader market.
For investors seeking more comprehensive insights, InvestingPro offers 13 additional tips for American Express, providing a deeper analysis of the company's financial health and market position. These additional tips can offer valuable context to Squeri's recent stock activities and the company's overall trajectory.
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