Michael Angelakis, a director at American Express (AXP), recently bought 3,700 shares. The buy is a new position for the director, and came to a total cost of $998,593.
This is the first insider buy at American Express since October 2023. Otherwise, company executives have been regular sellers of shares, with a mix of option exercises and traditional sales. The company CEO has been a sizeable seller, albeit when shares were trading at far higher prices.
Overall, American Express insiders own 21.7% of shares.
The credit card network provider is up 17% over the past year, but shares are now down about 20% off their 52-week high. Operationally, AmEx has been a solid performer, with revenues up 11% and earnings up 12% over the past year.
With rising earnings and a share selloff, American Express now trades at about 17 times earnings, a slight discount to the overall market.
Action to take: As one of the oligopoly players in the credit card payment network sectors, American Express should continue to consistently earn a high rate of return for investors, and shares are worth starting to pick up following their 20% decline from recent highs.
At current prices, American Express also pays a 1.3% dividend, which the company has a history of raising over time.
For traders, shares are likely primed for a short-term bounce in the coming weeks. The April $280 calls, last trading for about $4.45, could see mid-double-digit returns in the coming weeks.
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 company mentioned in this article.