Spotting American Express Company (NYSE:AXP) Stock’s Trend Before It Is Obvious To All

Stock analysts at Stephens cut their rating on shares of American Express Company (NYSE:AXP) from Overweight to a new rating of Equal-Weight in their opinion released on January 27.

Let’s take a glimpse at some insider activity at American Express Company (NYSE:AXP) and observe the pattern. The earliest insider trade happened on 01/30/2020. Leonsis Theodore parted with a total of 7.58 thousand shares of the firm at average share price of $132.61. The total amount for the sale was set at $1 million. On completing this exchange, the Director account balance was 4.01 thousand shares. The stock lost -0.77 percent from that insider sale. On 01/29/2020, Seeger Laureen, Chief Legal Officer, did a sale of 20.92 thousand shares at a price of $132.05 per share. This got rid of 2.76 million shares from the insider’s fortune and the stock experienced a -0.35 percent retreat in price since the news became public. This exchange saw 35.95 thousand shares get out from the Chief Legal Officer account. On 01/29/2020, EVP – Corporate Controller Petrino Richard recorded a sale transaction valued at $461.41 thousand. The sale at $131.83 a share has eliminated 3.5 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -0.18 percent decrease since the transaction reporting date. The company insider is left with 7.12 thousand shares remaining in the account. Joabar Raymond, who works as CRO and Pres., GRBC at the company, performed a sale of 17.54 thousand shares in a transaction worth $2.3 million. The disposal recorded on 01/27/2020 was priced at $131.21 per share. The stock price soared 0.29 percent since the transaction. Joabar Raymond currently holds a stake of 8.6 thousand in AXP stock which is worth $1.13 million after the insider selling.

American Express Company (AXP) is most likely going to rise 6.58 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $159 as 12-month high price target. This represents a whopping 20.82 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $144, which means a return possibility of 9.42 percent in comparison with the closing price of the stock of $131.6 in recent trading session. The lowest price set for the stock is $120 which is just above -8.81 percent from AXP share’s price at the end of session.

The stock is lingering around the initial support level of $131.27. After this, the following support is at the zone of $130.68. Up until the time the AXP stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 57.99 on the daily chart, and this may be a cause for concern. In case the price goes below $130.68 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $132.89 level may cause a pull-back move approaching $133.92 mark.

In the recent trading session, American Express Company (NYSE:AXP) shares lost -0.19% or -0.25 points to reach at $131.6 with a thin trading volume of 1.501 million shares. It opened the trading session at $132.88, the shares rose to $133.34 and dropped to $131.72, the range by which the price of stock traded the whole session. The company now has a market cap of $111 billion and currently has 839.38 million outstanding shares. American Express Company (AXP) stock has accumulated 5.82 percent of market value in 21 trading days.

AXP stock’s trailing 3-year beta is 0.99, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $7.99 share in the trailing 52 weeks. The stock’s value surged 5.91 percent year to date (YTD) compared to a rise of 27.49 percent in 52 week’s period. The firm’s shares are still trading -4.73 percent below its 1-year high of $138.13 and 27.26 percent up from 52-week low of $103.41. The average consensus ranking on the company is 2.5, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

American Express Company (AXP) shares are trading at a P/E ratio of 16.26 times earnings posted in the trailing 12 months. The industry AXP deals with has an average P/E of 41.99. Its P/B ratio is standing at 4.57X compared to the 20.81 industry average. It is additionally sporting a 2.14 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.41. American Express Company has a 68.5% gross profit margin, with its operating margin around 18%. Alongside this, the company’s net profit margin currently stands at 15.2%.

Past records have indicated that shares in American Express Company declined on 22 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of AXP’s Q1 earnings on April 15. Analysts are predicting revenue to climb 7.1 percent to $11.2B in the financial first quarter, while EPS will soar by about 8.46 percent to $2.18 per share. In the last quarter, it’s earnings of $2.01 per share came better than the $1.97122, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $11.37B, topping the $11.36B analysts had expected. Earnings are seen to rise by 23.7 percent this year, 10.4 percent in the coming year and the trend continues by 9.89 percent every year in the next 5 years.