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Why American Express Company Stock Jumped 6% Today

21 April 2017

Earnings per share are calculated by dividing a company's net income by its number of shares outstanding. Although the stock closed back below the line last week, as a result of yesterday's rally, AXP stock is now right back above it. Apart From last year's Costco-related business and the impact of foreign exchange rates, adjusted revenues net of interest expense grew 7 percent.1 That is up from a year-over-year increase of 6 percent in the prior quarter.1 Those increases mainly reflected higher adjusted Card Member spending and adjusted net interest income. American Express Company had a return on equity of 33.49% and a net margin of 16.63%. While this is down from $1.4 billion, or $1.45 per share, in the year-ago period, it was still more than enough to beat analyst expectations of $1.28 per share. Book value per share was $21.62 for the quarter, up 7.40 percent or $1.49 compared to $20.13 for the same period previous year.

"The last couple of years have been an important transition period, and we've entered 2017 stronger, more focused and more resilient", said Chief Executive Kenneth Chenault.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 10th. The ex-dividend date of this dividend was Wednesday, January 4th. It has a dividend yield of 1.60%. Importantly, consensus is finally catching up with reality as several sell-side analysts increased their target prices on the stock. Oppenheimer Holdings Inc. set a $97.00 target price on American Express Company and gave the company a "buy" rating in a report on Saturday, January 21st. Moreover, JP Morgan issued Upgrade rating for the stock on 17-Jan-17. Following the completion of the sale, the insider now owns 52,903 shares in the company, valued at approximately $3,824,886.90. Seven research analysts have rated the stock with a sell rating, fourteen have given a hold rating and ten have issued a buy rating to the company's stock. Consensus earnings estimates are far from flawless, but they are watched by many investors and play an important role in measuring the appropriate valuation for a stock. The shares were acquired at an average price of $79.74 per share, for a total transaction of $318,960.00. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John Joseph Brennan purchased 4,000 shares of the company's stock in a transaction that occurred on Wednesday, February 22nd. FINNERTY CORINNE R bought $5,579 worth of stock.

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Moody's Corporation MCO has an Earnings ESP of +0.84% and a Zacks Rank #2.

Large investors have recently added to or reduced their stakes in the company.

American Express Company (NYSE:AXP) said that its first quarter profit fell 13 percent from a year earlier, as the company continues to deal with the aftermath of losing its partnership with warehouse chain Costco. Smead Cap Incorporated has 5.24% invested in American Express Company (NYSE:AXP).

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Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE) announced that the Board of Directors has declared a dividend for the second quarter of 2017 of $.25 per share on shares of the Company's Common Stock and Class B Common Stock payable on May 12, 2017 to shareholders of record as of the close of business on April 28, 2017. Topeka Capital Markets initiated the shares of AXP in report on Monday, November 9 with "Hold" rating. LVW Advisors LLC now owns 3,929 shares of the payment services company's stock valued at $291,000 after buying an additional 38 shares during the last quarter.

American Express Company (AXP) now has the market capitalization of $72.01 Billion, P/E (price to earnings ttm) of 14.21 and Weekly volatility of 1.77% and monthly volatility of 1.42% respectively. The stock has a 50 day moving average price of $76.96 and a 200-day moving average price of $69.66. The stock's 52-week range is $11.01 - $17.95. This represents an increase of approximately 418% compared to the typical daily volume of 4,154 put options.

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Why American Express Company Stock Jumped 6% Today