On October 24, 2023, Clayton Walter Joseph III, a director at American Express Co (AXP, Financial), purchased 1,000 shares of the company. This move is significant as insider buying can often be a positive indicator for the company's future performance.
American Express Co is a globally integrated payments company that provides customers with access to products, insights, and experiences that enrich lives and build business success. It operates in three segments: Global Consumer Services Group, Global Commercial Services, and Global Merchant and Network Services. The company's products and services include charge and credit card products, as well as other payment and financing products; network services; expense management products and services; and lifestyle services.
Insider buying refers to when a company's executives, directors, or other insiders purchase the company's stock. It is often considered a bullish sign when insiders are buying shares in their own companies, as it suggests they believe the stock's price will rise.
Over the past year, the insider has purchased a total of 2,000 shares and has not sold any shares. This recent purchase of 1,000 shares adds to the insider's growing stake in the company.
The insider transaction history for American Express Co shows a total of 2 insider buys over the past year, compared to 8 insider sells. This could suggest a mixed sentiment among the company's insiders.
On the day of the insider's recent buy, shares of American Express Co were trading for $143.93 each, giving the stock a market cap of $104.59 billion.
The company's price-earnings ratio stands at 13.46, which is higher than the industry median of 11.79 but lower than the company’s historical median price-earnings ratio. This could suggest that the stock is currently trading at a fair value.
However, with a price of $143.93 and a GuruFocus Value of $209.58, American Express Co has a price-to-GF-Value ratio of 0.69. This indicates that the stock is significantly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by Clayton Walter Joseph III could be a positive sign for American Express Co. Despite the mixed insider transaction history over the past year, the stock appears to be significantly undervalued based on its GF Value. As always, investors should conduct their own due diligence before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
