American Express Co. (NYSE:AXP), currently trading near its 52-week high at $319.42, has announced the issuance of $3 billion in new notes, according to a recent SEC filing. The financial services giant, with a market capitalization of $224 billion, issued these notes today, under a senior indenture agreement with The Bank of New York Mellon (NYSE:BK), serving as trustee. According to InvestingPro analysis, American Express maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.
The offering includes $1.45 billion of 5.085% fixed-to-floating rate notes due in 2031, $1.25 billion of 5.442% fixed-to-floating rate notes maturing in 2036, and $300 million of floating rate notes also due in 2031. These notes were made available through a Prospectus Supplement dated January 28, 2025, to the Prospectus dated February 9, 2024, as part of the company's Registration Statement on Form S-3.
The notes are part of American Express's broader financing strategy, providing the company with additional capital. With a healthy current ratio of 1.76 and total debt of $51.1 billion, the company's strong liquidity position supports this financing move. The interest rates for the fixed-to-floating rate notes will remain fixed until the predetermined changeover date, after which they will convert to a floating rate until maturity. For deeper insights into AXP's financial health and detailed metrics, InvestingPro subscribers have access to over 14 additional key financial tips and comprehensive analysis.
The legal opinion and consent for the issuance of the notes were provided by Benjamin L. Kuder, Esq., as included in the filing's exhibits. The consent of counsel was also incorporated by reference into the Registration Statement as part of the filing.
This move by American Express reflects the company's proactive management of its capital structure and its efforts to secure long-term financing. The issuance of these notes is based on a press release statement and is intended for investors and market participants interested in the company's financial maneuvers.
American Express, headquartered in New York, is a global services company that provides customers with access to products, insights, and experiences that enrich lives and build business success. With annual revenue of $60.8 billion and strong market performance, including a 56% return over the past year, the company's latest financial activity, as reported through this SEC filing, continues to demonstrate its commitment to maintaining robust financial operations. Detailed analysis of AXP's performance metrics and future outlook is available through the comprehensive Pro Research Report on InvestingPro, part of their coverage of over 1,400 US equities.
In other recent news, American Express Co announced the departure of Anré Williams, Group President of Enterprise Services, a significant move for the financial services giant. Although a successor has not yet been named, the transition will take place on February 3, 2025, with Williams serving as Senior Executive Advisor until November 2025. On the earnings front, American Express reported a 9.3% year-over-year revenue growth to $60.76 billion.
In analyst activity, RBC Capital Markets, William Blair, and Keefe, Bruyette & Woods all expressed optimism about the company's future. RBC raised its price target for American Express to $350, reflecting solid core results and a stable credit quality. William Blair maintained an Outperform rating, highlighting potential for mid-teens earnings growth. Keefe, Bruyette & Woods increased their price target to $360, citing strong top-line growth.
Conversely, Compass Point reduced its price target to $309 due to concerns over revenue growth, while BTIG raised its price target to $272 but maintained a Sell rating due to concerns about the company's expenses. Goldman Sachs (NYSE:GS) reaffirmed a Buy rating on American Express shares with a steady price target of $350, despite higher expenses. These are recent developments in the financial analysis of American Express.
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