American Express (NYSE:AXP) Shares Gap Down – Here’s Why

American Express Company (NYSE:AXP) gapped down before the market opened on Monday . The stock had previously closed at $375.61, but opened at $360.50. American Express shares last traded at $357.8620, with a volume of 1,073,878 shares trading hands.

Key Stories Impacting American Express

Here are the key news stories impacting American Express this week:

• Positive Sentiment: JPMorgan raised its price target on AXP from $360 to $385 (still a “neutral” rating) — the higher target signals analyst conviction about upside if policy risk fades. Article Title
• Positive Sentiment: Long-term bull pieces highlight American Express’s strong brand, network effects and consistent earnings power, supporting a constructive multi-year outlook for shareholders. Is American Express Stock a Millionaire Maker?
• Neutral Sentiment: Consensus coverage remains clustered at “Hold” (majority of analysts), implying mixed near-term expectations even before this week’s headlines. Consensus Hold Report
• Neutral Sentiment: Several analysts and outlets urge caution but say a 10% APR cap is unlikely to be enacted as proposed, which could limit lasting damage if the policy talk fades. MarketWatch Analysis
• Negative Sentiment: President Trump’s proposal for a one‑year 10% cap on credit‑card APRs sparked heavy premarket selling across card issuers, directly pressuring AXP due to potential revenue/interest income risk. Barron’s: Stocks Drop on Trump’s Plan
• Negative Sentiment: Media coverage and opinion pieces amplified investor fears (downgrades and “panic” headlines), producing short‑term volatility and heavier trading volume in AXP. Seeking Alpha Downgrade

Wall Street Analysts Forecast Growth

Several analysts have weighed in on AXP shares. Credit Suisse Group set a $328.00 price objective on American Express in a research report on Monday. DZ Bank upgraded American Express from a “sell” rating to a “hold” rating and set a $340.00 price target on the stock in a research report on Tuesday, October 21st. HSBC set a $295.00 price objective on American Express and gave the stock a “hold” rating in a report on Friday, October 10th. Evercore ISI set a $400.00 price target on shares of American Express in a research note on Tuesday, January 6th. Finally, Cowen reissued a “hold” rating on shares of American Express in a research note on Thursday. Nine research analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $352.82.

American Express Stock Performance

The company has a current ratio of 1.61, a quick ratio of 1.59 and a debt-to-equity ratio of 1.78. The firm has a market capitalization of $247.59 billion, a P/E ratio of 24.12, a price-to-earnings-growth ratio of 1.57 and a beta of 1.15. The business’s 50 day simple moving average is $369.05 and its two-hundred day simple moving average is $339.88.

American Express (NYSE:AXP) last posted its quarterly earnings results on Friday, January 30th. The payment services company reported ($11.85) EPS for the quarter, missing analysts’ consensus estimates of $3.56 by ($15.41). American Express had a net margin of 14.97% and a return on equity of 33.41%. The firm had revenue of ($17,139.00) million for the quarter, compared to analysts’ expectations of $18.91 billion. Sell-side analysts anticipate that American Express Company will post 15.33 EPS for the current fiscal year.

American Express Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 10th. Investors of record on Friday, January 2nd will be issued a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 0.9%. The ex-dividend date is Friday, January 2nd. American Express’s dividend payout ratio (DPR) is presently 22.01%.

Insiders Place Their Bets

In other American Express news, CMO Elizabeth Rutledge sold 50,000 shares of the company’s stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $360.21, for a total transaction of $18,010,500.00. Following the transaction, the chief marketing officer owned 85,577 shares in the company, valued at approximately $30,825,691.17. This represents a 36.88% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Douglas Tabish sold 2,515 shares of American Express stock in a transaction that occurred on Thursday, October 23rd. The stock was sold at an average price of $355.61, for a total transaction of $894,359.15. Following the completion of the sale, the insider owned 2,515 shares of the company’s stock, valued at $894,359.15. This represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 57,515 shares of company stock valued at $20,658,509. 0.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Valley Wealth Managers Inc. lifted its stake in American Express by 153.3% in the 3rd quarter. Valley Wealth Managers Inc. now owns 76 shares of the payment services company’s stock worth $25,000 after purchasing an additional 46 shares in the last quarter. Briaud Financial Planning Inc purchased a new stake in shares of American Express in the second quarter worth about $26,000. Access Investment Management LLC bought a new position in American Express during the second quarter valued at approximately $26,000. Manning & Napier Advisors LLC purchased a new position in American Express during the 3rd quarter valued at approximately $27,000. Finally, Guerra Advisors Inc bought a new stake in American Express in the 3rd quarter worth approximately $28,000. Institutional investors own 84.33% of the company’s stock.

About American Express

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.