Walter Clayton, a director at American Express (AXP), recently bought 1,000 shares. The buy doubled his total holdings, and came to a cost of $143,930.
The director bought his initial stake in November 2022, paying about $149,000 for 1,000 shares. In that intervening time, company executives have sold shares, some directly, and some following the exercise of stock options. And there have been no other insider buys.
Overall, American Express insiders own 0.1 percent of shares.
The credit card services provider is down 5 percent over the past year, largely following the market’s recent selloff. Yet the company is doing well, with earnings up 30 percent and revenues up 11 percent.
The market is currently fearful of a slowdown in consumer spending, which would hit AXP’s business hard.
American Express also has a 15 percent profit margin right now, a bit on the company’s historic low side. And shares trade at less than 12 times earnings.
Action to take: Investors may like shares here, given the company’s strong brand. Shares pay a 1.7 percent dividend at current prices, and the company has a low payout, so further dividend increases are likely in the years ahead.
For traders, shares have started to move higher since the end of earnings. The March 2024 $150 calls, last going for about $7.10, stand a good chance of moving in-the-money and delivering mid-to-high double-digit returns.
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.