American Express Co (AXP) Stock: Is It Really a Risky Bet Right Now?

Monness Crespi & Hardt has recently reiterated American Express Co (AXP) stock to Buy rating, as announced on January 27, 2025, according to Finviz. Earlier, on December 19, 2024, Monness Crespi & Hardt had reiterated the stock to Buy, setting a price target of $330 for AXP stock. Monness Crespi & Hardt also reiterated Buy rating with a price target of $300. Additionally, HSBC Securities reduced Hold rating on October 8, 2024, with a target price of $270. BTIG Research analysts, in their report published on October 8, 2024, also reduced Sell rating for American Express Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.

American Express Co (AXP) Stock Trading Recap

On Tuesday, American Express Co (AXP) stock saw a decline, ending the day at $255.39 which represents a decrease of $-5.93 or -2.27% from the prior close of $261.32. The stock opened at $257.46 and touched a low of $253.54 during the day, reaching a high of $260.24. The volume of shares traded was 4.92 million exceeding the average volume of 2.57 million.


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AXP Stock Performance and Moving Averages

In recent trading, American Express Co (AXP) stock price has shown some volatility, fluctuating -9.91% over the last five trades and -19.38% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 4.64%, and it has plunged by -15.02% in the previous three months. Currently, AXP is trading at -12.92%, -15.84%, and -5.99% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, AXP, a Financial sector stock, is trading -21.73% below its 52-week high but remains 19.05% above its 52-week low. The Average True Range (ATR) (14 days) of 8.60 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

American Express Co’s Profitability and Valuation Ratios

American Express Co’s profitability metrics reveal financial health. The company currently boasts an operating margin of 20.11% and a profit margin of 13.47%, with a gross margin of 4.64%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, American Express Co’s market capitalization stands at $179.42 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 18.23, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 14.55. Additionally, the Price-to-Sales Ratio is 2.42, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 5.92, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.15% of American Express Co (AXP)’s shares, while financial institutions hold 86.33%.

Notable insider trades include Marrs Anna, Group Pres., GMNS at American Express Co (AXP), who sold 21,955 shares on Mar 04 ’25, at $287.88 each, totaling $6.32 million. On Feb 26 ’25, Lieberman Quinn Jessica, EVP – Controller, sold 3,028 shares for $296.43 each, amounting to $0.90 million. Additionally, on Feb 11 ’25, McNeal Glenda G sold 7,391 shares at $309.96 each, generating $2.29 million.

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