American Express Co (NYSE:AXP) Chairman and CEO Stephen J. Squeri has sold a significant portion of his company stock, according to a recent SEC filing. The transactions, which took place on April 23, 2024, involved the sale of 35,173 shares at an average price of $238.58 and an additional 3,700 shares at an average price of $239.14. These sales resulted in a total of approximately $9,276,392.
The prices at which the shares were sold ranged from $238.13 to $239.23, as detailed in the footnotes of the filing. The filing also noted that the shares were sold in multiple transactions within these price ranges, and the reporting person has agreed to provide full information on the number of shares sold at each separate price upon request.
Following these transactions, Squeri still holds 80,010 shares directly and an additional 76,310 shares after the second sale. The SEC filing also disclosed holdings in indirect forms such as by 2020 GRAT, by GRAT, in a 401(k) Trust, and trusts for the benefit of children, although these do not impact the total value of the sales reported.
Investors often monitor insider transactions for insights into executive sentiment regarding their company's stock. The sale by Squeri represents a notable change in his investment in American Express, and market watchers may be keen to understand the implications of this move.
InvestingPro Insights
As American Express Co (NYSE:AXP) sees a notable insider transaction with Chairman and CEO Stephen J. Squeri's sale of company stock, investors are turning to real-time data and expert analysis to gauge the financial health and market position of the company. According to InvestingPro, American Express is trading at a low P/E ratio relative to near-term earnings growth, with a reported P/E ratio of 19.57 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 18.87. This could indicate that the company's stock is undervalued compared to its earnings potential.
Despite the recent insider selling, American Express has demonstrated significant returns, with a one-week price total return of 9.94% and a strong six-month price total return of 67.67%, reflecting investor confidence and a bullish trend for the stock. The company's robust performance is further underscored by a revenue growth of 9.95% for Q1 2024, showcasing its ability to expand its financial footprint.
InvestingPro Tips highlight that American Express, a prominent player in the Consumer Finance industry, has maintained dividend payments for 54 consecutive years and offers a dividend yield of 1.17%. This consistent dividend history may appeal to income-focused investors. Moreover, with analysts predicting profitability for the year and a solid track record over the last twelve months, American Express appears financially resilient.
For investors seeking additional insights, there are more InvestingPro Tips available, including analysis on the company's liquidity and debt profile, as well as its performance relative to industry peers. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a wealth of financial data and expert analysis that could inform investment decisions.
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