ProVise Management Reduces American Express Stake by 8.5%

ProVise Management Group LLC has reduced its holdings in American Express Company (NYSE: AXP) by 8.5% during the second quarter of 2023. According to its latest filing with the Securities and Exchange Commission (SEC), the institutional investor now owns 9,300 shares of the payment services firm after selling 867 shares during this period. As of the most recent SEC disclosure, ProVise’s stake in American Express is valued at approximately $2,967,000.

Several other institutional investors have also adjusted their positions in American Express. Notably, Nuveen LLC acquired a new stake worth around $1.45 billion in the first quarter of 2023. Furthermore, Wellington Management Group LLP increased its position in American Express by 13.7%, bringing its total to 18,025,562 shares, valued at $4.85 billion, following the purchase of an additional 2,168,445 shares.

Geode Capital Management LLC also expanded its investment, increasing its holdings by 11.1% during the second quarter. This adjustment resulted in Geode owning 13,487,316 shares worth approximately $4.28 billion. Additionally, Goldman Sachs Group Inc. raised its stake by 25.5% and now possesses 4,752,690 shares valued at about $1.28 billion.

In a significant move, Provident Trust Co. grew its position in American Express by an impressive 136.6% in the second quarter, acquiring 640,214 additional shares, which brings its total to 1,108,971 shares valued at $353.74 million. Overall, hedge funds and institutional investors collectively own 84.33% of the company’s stock.

Insider Transactions and Market Performance

In other developments concerning American Express, insider Douglas Tabish sold 2,515 shares of the company on October 23, 2023, at an average price of $355.61, amounting to a total of $894,359.15. Following this transaction, Tabish holds 2,515 shares valued at the same amount, indicating a 50% reduction in his ownership.

Vice Chairman Douglas E. Buckminster also made headlines by selling 23,505 shares on September 2, 2023, for a total transaction value of approximately $7.67 million. After this sale, Buckminster retained 123,613 shares, valued at around $40.34 million, reflecting a 15.98% decrease in his holdings. Over the past quarter, insiders have sold a total of 193,292 shares valued at approximately $65.36 million, while corporate insiders hold a mere 0.20% of the company’s stock.

Financial Performance and Future Outlook

American Express shares opened at $356.87 on Friday, experiencing a decline of 2.2%. The stock’s performance reveals a 50-day moving average of $343.50 and a 200-day moving average of $317.55. With a market capitalization of $245.83 billion, the company maintains a price-to-earnings (P/E) ratio of 23.95 and a beta of 1.27.

The company recently announced its quarterly earnings results on October 17, 2023. American Express reported earnings per share (EPS) of $4.14, surpassing analysts’ expectations of $3.98 by $0.16. The firm achieved a net margin of 14.97% alongside a return on equity of 33.41%. However, revenue for the quarter totaled $17.14 billion, falling short of the expected $18.03 billion, though this figure marks an 11.0% year-over-year increase.

For the fiscal year 2025, American Express has set guidance for EPS between $15.20 and $15.50. Analysts forecast an EPS of $15.33 for the current fiscal year, reflecting positive growth expectations.

American Express has also declared a quarterly dividend, which was distributed on November 10, 2023. Shareholders of record on October 10, 2023, received a dividend of $0.82 per share, resulting in 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 with a global presence, serving markets across the United States, Europe, the Middle East, Africa, Asia Pacific, and Latin America. The company functions through four main segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.