Cookson Peirce Lowers Stake in American Express by 1.7%

Cookson Peirce & Co. Inc. has reduced its holdings in American Express Company (NYSE:AXP) by 1.7% during the second quarter of 2023, according to its latest 13F filing with the Securities and Exchange Commission (SEC). The firm now owns a total of 181,712 shares after selling 3,138 shares in the quarter. American Express constitutes 2.6% of Cookson Peirce’s portfolio, making it the firm’s sixth-largest position, valued at approximately $57.96 million.

In addition to Cookson Peirce, several institutional investors and hedge funds have made recent adjustments to their positions in American Express. For instance, Capital Asset Advisory Services LLC increased its stake by 2.8% during the same period, now owning 1,191 shares worth around $384,000. Similarly, DLK Investment Management LLC raised its position by 3.8%, acquiring 869 shares valued at $277,000.

Financial Engines Advisors L.L.C. and Modern Wealth Management LLC also expanded their holdings, with increases of 4.7% and 0.7% respectively. Greenfield Savings Bank also marginally boosted its stake by 0.3%, bringing its total to 13,116 shares valued at approximately $4.18 million. Collectively, institutional investors and hedge funds now hold approximately 84.33% of American Express’s stock.

Insider Transactions Raise Eyebrows

Recent insider activity at American Express has also attracted attention. On July 29, 2023, Glenda G. Mcneal, an insider, sold 50,000 shares of the company at an average price of $309.50, totaling around $15.48 million. Following this transaction, Mcneal’s remaining shares were valued at approximately $3.39 million, reflecting a significant 82.03% decrease in her position.

Another notable sale occurred on August 5, 2023, when insider Laureen Seeger sold 61,721 shares at an average price of $297.47, totaling around $18.36 million. After this sale, Seeger retained 9,001 shares, valued at approximately $2.68 million, marking an 87.27% reduction in her shareholding. Over the past three months, insiders have sold 269,996 shares valued at approximately $85.26 million. Corporate insiders now own just 0.20% of the company’s stock.

American Express Performance and Future Outlook

As of October 17, 2023, American Express shares opened at $355.76, reflecting a 1.8% increase. The company’s debt-to-equity ratio stands at 1.78, while the quick and current ratios are 1.69 and 1.61 respectively. American Express’s stock has ranged between a fifty-two week low of $220.43 and a high of $356.67, with a market capitalization of $245.06 billion.

In its most recent earnings report, American Express announced earnings per share (EPS) of $4.14 for the quarter, surpassing the consensus estimate of $3.98 by $0.16. The company generated revenue of $18.43 billion, exceeding analyst expectations of $18.03 billion. This marks an 11.0% increase in revenue compared to the same quarter last year, when the company recorded an EPS of $3.49.

American Express has also provided guidance for fiscal year 2025, projecting EPS between $15.20 and $15.50. Analysts anticipate that the company will report an average EPS of $15.33 for the current fiscal year.

In addition to its financial performance, American Express announced a quarterly dividend of $0.82, set to be paid on November 10, 2023. Investors on record as of October 10, 2023, will receive this dividend, reflecting an annualized dividend of $3.28 and a yield of 0.9%. The company’s dividend payout ratio currently stands at 22.01%.

American Express operates as an integrated payments company across various global regions, including the United States, Europe, and Asia Pacific, among others. The company has established itself through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.