Two key insiders at American Express (AXP) sold a large amount of the company’s shares, totaling $6.5 million yesterday. The sale comes weeks after the company reported strong Q4 results. Moreover, AXP stock has gained 40.6% in the past six months.
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According to the recent SEC filing, Chief Information Officer Ravikumar Radhakrishnan divested 9,485 shares of AXP on February 5, at an average price of $319.17 per share for a total transaction value of $3.03 million.
Further, Raymond Joabar, group president of AXP’s global merchant & network services, sold 11,121 shares worth $3.53 million.
Insiders Sentiment for AXP Stock Is Currently Bearish
In addition to the two executives mentioned, some more corporate insiders at American Express have decreased their stake in the company. Overall, TipRanks’ Insider Trading Activity Tool shows that insider confidence in American Express stock is currently Very Negative. Corporate insiders have sold shares worth $62.4 million over the last three months.
However, this doesn’t necessarily signal trouble for the company. Given AXP’s strong financial position, high card member retention rates, and continued expansion in international markets, these insider transactions may not be a major cause for concern.
Investors could keep close track of these notable insider activities, as they reflect the perceptions of key insiders about the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Who Is the Best Analyst Covering AXP Stock?
According to TipRanks, five-star analyst Sanjay Sakhrani from KBW has witnessed 91% success in his 23 ratings on American Express. Importantly, copying Sakhrani’s trades for a year would yield an average return of 33.28% per trade.
On January 27, Sakhrani reiterated a Buy rating on AXP stock and raised his price target to $360 from $350. The new price target implies a 12.45% upside potential from the current level.
Is AXP a Buy or Sell?
Turning to Wall Street, AXP stock has a Moderate Buy consensus rating based on eight Buys, 11 Holds, and one Sell assigned in the last three months. At $329.58, the average American Express price target implies a 2.95% upside potential.
