Cullinan Associates Inc. has decreased its ownership in American Express Company (NYSE:AXP) by 13.1% during the third quarter of the fiscal year. According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the fund now holds 47,613 shares after selling 7,192 shares during the period. American Express constitutes approximately 1.0% of Cullinan Associates Inc.’s portfolio, making it the firm’s 25th largest holding, valued at around $15.8 million.
The adjustments by Cullinan Associates come as part of broader movements among institutional investors regarding American Express. For instance, Nordea Investment Management AB increased its stake by 2.2% in the second quarter, acquiring an additional 49,593 shares to hold a total of 2,267,377 shares valued at $721.5 million. Similarly, Sumitomo Mitsui Trust Group Inc. raised its holdings by 0.3% during the third quarter, now owning 1,598,743 shares worth $531.0 million.
Dempze Nancy E significantly increased its investment in American Express by 210.2% in the second quarter, now holding 3,459 shares valued at $1.1 million. Reliant Investment Management LLC also grew its holdings by 1.9%, bringing its total to 26,189 shares valued at $8.35 million. In addition, ZEGA Investments LLC entered the market with a new stake worth $1.08 million in the third quarter. Overall, institutional investors now own approximately 84.33% of American Express’s stock.
Market Reactions and Analyst Insights
Recent analyst evaluations of American Express have also influenced market sentiment. Following revised expectations, Wells Fargo & Company increased its price target from $400.00 to $425.00 while maintaining an “overweight” rating. Cowen reaffirmed a “hold” rating, while Compass Point reiterated a “neutral” stance, setting a target price of $324.00. Goldman Sachs Group restated a “buy” rating with a price target of $420.00, while BTIG Research maintained a “sell” rating with a target of $328.00.
Current consensus among analysts indicates a “hold” rating for American Express, with an average target price of $352.82. Nine analysts have given the stock a “buy” rating, seventeen have assigned a “hold” rating, and one has issued a “sell” rating, according to MarketBeat.
Current Financial Performance and Dividend Announcements
American Express’s stock opened at $357.85 recently, with a market capitalization of $246.5 billion. The company has a price-to-earnings (P/E) ratio of 24.02 and a price-to-earnings-growth (PEG) ratio of 1.51. Over the past year, the stock has fluctuated between a low of $220.43 and a high of $387.49.
The company reported earnings on January 30, revealing a loss of ($11.85) earnings per share (EPS), falling short of the consensus estimate of $3.56 by ($15.41). American Express generated revenue of $17.14 billion for the quarter, which was below analysts’ expectations of $18.91 billion. Analysts predict that American Express will achieve an EPS of $15.33 in the current fiscal year.
Additionally, American Express has announced a quarterly dividend of $0.82 per share, to be paid on February 10. Investors of record on January 2 will receive this dividend, representing an annualized amount of $3.28 and a yield of 0.9%. The dividend payout ratio currently stands at 22.01%.
American Express, established in 1850, is a leading global financial services firm primarily recognized for its payment card products and travel services. The company continues to adapt and evolve, focusing on enhancing its merchant network and customer loyalty programs.
