American Express Falls 0.6% as Credit Stress Concerns Weigh, June 06

American Express fell 0.6% to $310.66 on June 06 as credit card delinquencies reached a 15-year high. The payment processor reported strong Q1 earnings with revenue of $20.88 billion, up 10.3% year-over-year, but rising consumer debt stress weighs on the outlook. Meyka rates AXP a B+ with a 12-month target of $366.89, suggesting limited downside despite near-term headwinds.

Q1 Earnings Beat Expectations

American Express reported first-quarter 2026 revenue of $20.88 billion and net profit of $2.97 billion, both exceeding prior-year results. Revenue grew 10.3% from $18.93 billion in Q1 2025, while net income rose 15.1% from $2.58 billion. The company’s earnings per share came in at $16.03, with a price-to-earnings ratio of 19.38. Bank of America Securities maintained a Buy rating and set a $387.00 price target on the stock.

Credit Card Delinquencies Hit 15-Year High

Federal Reserve data from May 2026 shows credit card delinquencies at a 15-year high, with 13.1% of balances 90 days past due in Q1. Credit card debt fell to $1.25 trillion at quarter-end, down $25 billion from Q4 2025, following typical post-holiday paydown patterns. Fisher Investments argues the alarm is overblown because credit cards represent only 7% of the nation’s $18.8 trillion in total household debt, with mortgages and auto loans dominating household finances.

Institutional Investors Adjust Positions

Prudential PLC reduced its American Express stake by 5.0% in Q4, selling 3,989 shares and leaving holdings worth $28.01 million. Other institutional investors made mixed moves, with Evolution Wealth Management increasing holdings by 6,600% and new positions established by Joseph Group Capital Management, Torren Management, and Entrust Financial. Hedge funds and institutional investors own 84.33% of the stock’s outstanding shares.

Technical and Valuation Metrics Show Weakness

The stock trades at a 50-day moving average of $313.70 and a 200-day moving average of $337.11, down 16.1% year-to-date. The RSI stands at 47.50, indicating neutral momentum, while the MACD shows a negative histogram of -0.28. Market capitalization sits at $212.02 billion with 682.33 million shares outstanding. Meyka’s B+ grade reflects strong profitability but concerns over the debt-to-equity ratio of 1.73 and valuation multiples.

Final Thoughts

American Express delivered strong Q1 earnings but faces headwinds from rising credit delinquencies. With Meyka rating the stock B+ and Bank of America targeting $387.00, the data suggests limited downside despite near-term consumer credit stress.

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