American Express sees institutional support amid travel demand surge
Jim Cramer and options trader Bob Lang point to strong fundamentals and chart signals as American Express targets $350, while hedge fund valuations dip slightly in the first quarter.
On July 21, CNBC host Jim Cramer discussed American Express (NYSE:AXP) on the Mad Money program, citing strong travel demand and the company's premium business model as key strengths. Cramer noted that while American Express holds only 10% of purchase volume compared to Visa and Mastercard, its closed-loop structure allows for higher annual fees and per-cardholder spending, despite carrying credit risk.
Options trader Bob Lang provided technical analysis, noting the stock's breakout above its 200-day moving average and projecting targets of $350 and $370. Cramer advised investors to consider buying the stock around 10:30 or 11:00 on earnings days, observing that the share price often dips initially on positive reports before rallying.
Institutional backing remains strong, with Berkshire Hathaway holding over 151.6 million shares, while short interest remains low at 2.04% as of June 30, 2026.
Wall Street institutions maintain a solid stake in American Express Company (NYSE:AXP), with institutional investors holding 65.24% of total shares according to Refinitiv.
However, it is worth noting that while the number of hedge fund holders remained the same (83) in Q4 2025 and Q1 2026, the dollar value of their holdings decreased by around $10 billion to $51 billion in Q1.
The firm owned over 151.6 million shares of the company, worth nearly $45 billion.
