ProVise Management Reduces Stake in American Express by 8.5%

ProVise Management Group LLC has decreased its holdings in American Express Company (NYSE: AXP) by 8.5%, according to a recent disclosure with the Securities and Exchange Commission (SEC). Following the sale of 867 shares during the second quarter, ProVise now owns a total of 9,300 shares, valued at approximately $2,967,000.

Several other institutional investors have also altered their positions in American Express. Notably, Nuveen LLC acquired a new stake worth about $1.45 billion in the first quarter. Additionally, Wellington Management Group LLP increased its stake by 13.7%, now holding 18,025,562 shares valued at $4.85 billion after purchasing an additional 2,168,445 shares. Geode Capital Management LLC expanded its position by 11.1% during the same period, now owning 13,487,316 shares worth $4.28 billion.

Goldman Sachs Group Inc. also boosted its stake by 25.5%, acquiring an additional 965,221 shares for a total of $1.28 billion. In the second quarter, Provident Trust Co. significantly increased its holdings by 136.6%, now owning 1,108,971 shares valued at $353.74 million. Overall, hedge funds and other institutional investors control approximately 84.33% of American Express’s stock.

Recent Insider Transactions

In related news, insider Douglas Tabish sold 2,515 shares of American Express on October 23, 2023, at an average price of $355.61, totaling $894,359.15. Following this transaction, Tabish’s ownership in the company decreased by 50%. Furthermore, Vice Chairman Douglas E. Buckminster sold 23,505 shares on September 2, 2023, at an average price of $326.37. This sale amounted to $7.67 million, reducing his stake by 15.98%.

Insiders have sold a total of 193,292 shares worth $65.36 million over the last quarter, with corporate insiders holding just 0.20% of the company’s stock.

Market Performance and Earnings Report

As of Friday, the stock of American Express was trading down by 2.2%, opening at $356.87. The company’s market capitalization stands at $245.83 billion, with a price-to-earnings (P/E) ratio of 23.95 and a beta of 1.27. American Express reported a twelve-month low of $220.43 and a high of $377.23.

On October 17, 2023, American Express released its quarterly earnings results, reporting earnings per share (EPS) of $4.14, surpassing analysts’ expectations of $3.98 by $0.16. The company’s net margin was 14.97% with a return on equity of 33.41%. Revenue for the quarter was $17.14 billion, falling short of estimates of $18.03 billion, but still reflecting an increase of 11.0% year-over-year. For fiscal year 2025, American Express has set an EPS guidance range of $15.20 to $15.50.

Additionally, American Express recently declared a quarterly dividend of $0.82 per share, which was paid to stockholders of record on October 10, 2023. This represents an annualized dividend of $3.28 and a yield of 0.9%, with a current dividend payout ratio of 22.01%.

American Express operates as an integrated payments company across various regions, including the United States, Europe, and Asia. It functions through four primary segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services.