American Express (NYSE:AXP) Shares Gap Down – Here’s Why

American Express Company (NYSE:AXP)’s share price gapped down prior to trading on Friday . The stock had previously closed at $340.84, but opened at $326.12. American Express shares last traded at $320.9310, with a volume of 1,328,016 shares.

American Express News Roundup

Here are the key news stories impacting American Express this week:

• Positive Sentiment: American Express reported Q2 EPS of $4.53, topping expectations, and said revenue rose 10% year over year as cardmembers kept spending more on travel and dining. Stronger card activity also helped drive profit higher and delinquency rates lower. Reuters article
• Positive Sentiment: The company raised its full-year 2026 revenue growth forecast, signaling confidence that affluent customers will continue to spend despite economic uncertainty. Business Wire article
• Positive Sentiment: Premium card sign-ups remained strong, suggesting American Express is still attracting higher-value customers and supporting longer-term growth. Economic Times article
• Neutral Sentiment: Management also noted expenses rose 12% due to marketing and product updates, which may support growth but adds near-term cost pressure. Economic Times article
• Negative Sentiment: Investors appear focused on the revenue miss versus Wall Street expectations, which helped trigger the stock’s decline even though earnings were better than forecast. Proactive Investors article

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. UBS Group raised their price objective on American Express from $340.00 to $386.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. TD Cowen upped their target price on American Express from $330.00 to $338.00 and gave the company a “hold” rating in a research report on Tuesday, July 7th. Wells Fargo & Company reduced their target price on American Express from $425.00 to $415.00 and set an “overweight” rating on the stock in a report on Thursday, April 9th. DZ Bank raised American Express from a “hold” rating to a “buy” rating and set a $375.00 target price on the stock in a report on Thursday, June 18th. Finally, The Goldman Sachs Group raised their price target on American Express from $360.00 to $400.00 and gave the stock a “buy” rating in a research report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $374.11.

American Express Price Performance

The company has a current ratio of 1.57, a quick ratio of 1.56 and a debt-to-equity ratio of 1.73. The firm has a market cap of $220.72 billion, a price-to-earnings ratio of 20.16, a price-to-earnings-growth ratio of 1.41 and a beta of 1.04. The company’s 50-day moving average is $332.26 and its 200-day moving average is $330.36.

American Express (NYSE:AXP) last announced its quarterly earnings data on Friday, July 24th. The payment services company reported $4.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.41 by $0.12. American Express had a net margin of 15.13% and a return on equity of 33.95%. The business had revenue of $14.99 billion for the quarter, compared to analysts’ expectations of $19.70 billion. During the same period last year, the firm posted $4.08 earnings per share. The firm’s quarterly revenue was up 10.0% compared to the same quarter last year. American Express has set its FY 2026 guidance at 17.300-17.900 EPS. Equities research analysts predict that American Express Company will post 17.67 earnings per share for the current year.

American Express Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 10th. Stockholders of record on Thursday, July 2nd will be paid a $0.95 dividend. The ex-dividend date is Thursday, July 2nd. This represents a $3.80 annualized dividend and a dividend yield of 1.2%. American Express’s dividend payout ratio (DPR) is presently 23.71%.

Hedge Funds Weigh In On American Express

Institutional investors have recently modified their holdings of the business. Evolution Wealth Management Inc. grew its position in American Express by 6,600.0% in the fourth quarter. Evolution Wealth Management Inc. now owns 67 shares of the payment services company’s stock valued at $25,000 after acquiring an additional 66 shares during the last quarter. Joseph Group Capital Management bought a new position in shares of American Express in the fourth quarter worth about $26,000. Sfam LLC bought a new position in shares of American Express in the fourth quarter worth about $26,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of American Express in the 4th quarter valued at approximately $28,000. Finally, Wilkerson Advisory Group LLC acquired a new stake in shares of American Express in the 4th quarter valued at approximately $29,000. Institutional investors and hedge funds own 84.33% of the company’s stock.

American Express Company Profile

American Express is a global financial services company primarily known for its payment card products, travel services and merchant network. Founded in 1850 as an express mail business, the company evolved through the 20th century into a payments and travel-focused organization. Its core activities include issuing consumer and commercial charge and credit cards, operating a global card acceptance and processing network, and providing travel-related services and customer loyalty programs.

American Express issues a range of products for individuals, small businesses and large corporations, including personal cards, business and corporate cards, and co‑brand partnerships with airlines, hotels and retailers.