American Express (AXP) shares have reached an unprecedented peak, touching an all-time high of $296.87. This milestone underscores a remarkable period of growth for the financial services giant, which has seen its stock value surge by 80.79% over the past year. Investors have shown increasing confidence in American Express, buoyed by robust earnings reports and positive market sentiment towards the company's strategic initiatives and customer acquisition efforts. The record high represents a significant achievement for American Express, reflecting its strong position in the competitive financial market and its ability to consistently deliver value to shareholders.
In other recent news, American Express Co (NYSE:AXP) has reported a series of significant developments. The company disclosed strong third-quarter earnings, with earnings per share (EPS) of $3.49 and revenues totaling $16.6 billion, reflecting an 8% increase year-over-year. The credit card giant also raised its full-year EPS guidance to between $13.75 and $14.05. In addition, American Express acquired full ownership of Swisscard from UBS, marking a notable business transaction.
Analyst responses to these developments have varied. TD Cowen held its rating on American Express shares while raising the price target to $268. Baird increased its price target for American Express to $240 but maintained an underperform rating due to concerns about future revenue growth. BTIG reiterated its sell rating on American Express, maintaining a $230 price target.
American Express also disclosed credit performance metrics for its U.S. Consumer and U.S. Small Business Card Member lending portfolios. The U.S. Consumer Card Member loans stood at $88 billion as of October 31, 2024, with a delinquency rate of 1.4% for loans 30 days past due. The U.S. Small Business Card Member loans reached $30.5 billion by the end of October, with a 1.5% delinquency rate for loans 30 days past due. These are recent developments in the company's ongoing operations.
InvestingPro Insights
American Express's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $208.42 billion, reflecting its significant presence in the Consumer Finance industry. AXP's P/E ratio of 21.76 suggests that investors are willing to pay a premium for its earnings, potentially due to its strong market position and growth prospects.
InvestingPro Tips highlight that American Express has maintained dividend payments for 54 consecutive years, demonstrating a long-term commitment to shareholder returns. This is particularly noteworthy given the company's recent dividend growth of 16.67% in the last twelve months. Additionally, AXP is trading near its 52-week high, which corroborates the article's mention of the stock reaching an all-time peak.
The company's financial health appears robust, with liquid assets exceeding short-term obligations. This financial stability, combined with a strong return of 81.03% over the last year, supports the investor confidence mentioned in the article. For readers interested in a deeper analysis, InvestingPro offers 13 additional tips that could provide further insights into American Express's market position and future prospects.
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