Locking in Nice Gains From This Overbought Portfolio Position
Here’s where we may buy back shares of this membership-driven company.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
AXP | Sell | 80 | $327.50 | 500 | 3.1% |
After you receive this alert, we will sell 80 shares of American Express AXP at or near $327.50. Following the trade, the Portfolio will own 500 AXP shares, roughly 3.1% of the Portfolio.
We are taking advantage of the sizable run in AXP shares, which, as we can see in the chart below, has landed them deep in overbought territory, to ring the register and lock in a nice gain on this slug of shares. Because we continue to favor the company’s membership business model and plans to make it the largest refresh investment ever to its U.S. Consumer and Platinum Business Cards later this year, we will want to remain shareholders. As we get more of those details, we will revisit our AXP price target as necessary.
As we make today’s move, and in keeping with our Two rating, should we see the shares pull back to levels of strong support depicted in the chart above, we would be inclined to rebuild the Portfolio’s position. The odds of that happening are even greater if the shares positively test those support levels below the Portfolio’s average cost basis of $293.60 heading into today’s trade.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart next to the position’s ticker to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long AXP.
