KLP Kapitalforvaltning AS Invests in American Express

KLP Kapitalforvaltning AS has made a significant investment in American Express (NYSE: AXP) during the fourth quarter, as reported in their latest Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 207,479 shares of American Express, valued at approximately $61,578,000.

Along with KLP's purchase, several other large investment firms have also adjusted their holdings in American Express. Newbridge Financial Services Group Inc. established a new position in the company during the fourth quarter, with a valuation of $832,000. In the third quarter, World Investment Advisors LLC increased its stake in American Express by an impressive 430.6%. After acquiring an additional 3,867 shares, their total ownership amounts to 4,765 shares worth $1,292,000.

Furthermore, Keybank National Association OH raised its investment in the payment services company by 3.7% in the fourth quarter, now holding 349,937 shares valued at $103,858,000 after purchasing an additional 12,364 shares. LVM Capital Management Ltd. MI also increased its stake by 3.1%, bringing its total ownership to 86,344 shares worth approximately $25,626,000 after acquiring an extra 2,557 shares. Lastly, Edge Capital Group LLC enhanced its holdings in American Express by 20.9%, amassing 6,451 shares valued at $1,915,000 after adding 1,113 shares during the last quarter. Currently, institutional investors and hedge funds own 84.33% of American Express stock.

Insider Trading Activity

In addition to institutional investments, there have been notable insider transactions at American Express. On February 5th, insider Ravikumar Radhakrishnan sold 9,485 shares at an average price of $319.17, totaling $3,027,327.45. Post-sale, he retains ownership of 13,500 shares valued at around $4,308,795, reflecting a decrease of 41.27% in his holdings.

Conversely, Director Michael J. Angelakis acquired 3,700 shares of the company on March 7th at an average price of $269.89 per share, totaling $998,593. This purchase significantly increases his stake, now totaling 3,700 shares valued at approximately the same amount.

Analyst Ratings

American Express has garnered attention from various analysts recently. StockNews.com downgraded the company’s shares from a "buy" to a "hold" rating on January 27th. Similarly, JPMorgan Chase & Co. raised their target price for American Express from $301.00 to $307.00 and maintained a "neutral" rating. On their part, Morgan Stanley adjusted their target price from $305.00 to $310.00 with an "equal weight" rating on January 27th.

Meanwhile, Keefe, Bruyette & Woods increased their price target for the stock from $350.00 to $360.00, assigning it an "outperform" rating. UBS Group also bumped up their target price from $283.00 to $320.00 while maintaining a "neutral" outlook. In total, out of multiple analysts, two rated it as a sell, sixteen as hold, and nine as buy, with an average rating of "Hold" and an average target price of $303.52.

Stock Performance and Earnings

As of Friday, shares of AXP opened at $270.48. The company has a market capitalization of $190.02 billion along with a P/E ratio of 19.31 and a PEG ratio of 1.41. Over the past year, American Express reached a low of $214.51 and a high of $326.28. Recently, American Express announced its quarterly earnings on January 24th, reporting $3.04 earnings per share, surpassing the consensus estimate of $3.00 by $0.04. Analysts project that American Express will post a total of 15.33 EPS for the current year.

Dividend Announcement

Additionally, the company revealed a forthcoming quarterly dividend set to be paid on May 9th. Stockholders on record as of April 4th will receive a dividend of $0.82 per share. This increase from the previous dividend of $0.70 brings the annualized dividend to $3.28, providing a yield of approximately 1.21%. The ex-dividend date for this dividend is also April 4th, with a payout ratio reported at 23.41%.

About American Express

American Express Company operates as an integrated payments provider worldwide, with significant activities in the U.S., Europe, the Middle East, Africa, Asia Pacific, New Zealand, Latin America, Canada, the Caribbean, and beyond. The company segments its operations into U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.

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