Clayton Joseph, a director at
American Express (AXP), recently bought 1,000 shares. The purchase came to a total price of just under $150,000, and represents an initial stake for the director.
This represents the first insider buy at the company since late 2020. Otherwise, company insiders, mostly executives, have been steady and consistent sellers of shares over the past three years, with a large spike in insider selling occurring back in February of this year.
Overall, company insiders own 0.13 percent of shares.
Shares of the credit services company are down 14 percent in the past year, about in-line with the overall stock market. However, the company is one of an oligopoly players in its sector. So even with earnings growth slow at 3 percent in the past year, revenues have expanded 15 percent.
Action to take: The company is worth buying for the long haul at the right price. For where shares have traded in the past year, investors should look to accumulate shares under $160.
At that price, the stock yields about 1.3 percent right now, but the dividend has been raised over time.
For traders, shares are starting to rebound off of recent lows. The April 2023 $175 calls, recently going for about $6.60, can potentially deliver mid-double-digit returns on a further rally in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.