NEW YORK, NY / ACCESSWIRE / May 22, 2017 / American Express had a flat trading day on Friday but there was a promising piece of news that emerged. Apparently Warren Buffet has asked the Federal Reserve for permission for it to own up to 24.99% of the company. Warren Buffet's Berkshire Hathaway is already the biggest shareholder in American Express. Deere & Company completely blew away Wall Street with its last quarterly report and even upped their forecast for the year. Traders were all over this as the company soared to a new high.
RDI Initiates Coverage on:
Deere & Company
American Express Company
Deere & Company's shares closed up 7.30% and even hit a new high of $122.24 during intra-day trading after the company raised its profit forecast for 2017 by a whopping 33% due to an increase in demand in South America. The farm-machinery maker just reported its fiscal Q2 earnings results and completely trampled the Street's estimates. Deere & Company reported $2.49 per share, while FactSet had called for $1.63 share. CEO Samuel Allen commented, "We are seeing modestly higher overall demand for our products, with farm machinery sales in South America experiencing a strong recovery. Deere's performance also reflects the sound execution of our operating plans, the strength of a broad product portfolio, and the impact of our actions to develop a more agile cost structure. As a result, we have raised our forecast and are now calling for significantly higher earnings for the full year."
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American Express Company's shares closed up 0.55% on Friday and was one of the most talked about stocks as Warren Buffet just asked permission to own as much as 25% of the company. According to Bloomberg, the billionaire's Berkshire Hathaway has asked the Federal Reserve to allow it to own as much as 24.99% of the credit card company. Marina Norville, a spokeswoman for American Express commented and said, "This is an application to continue to retain American Express stock, not to buy additional shares." According to Norville, Berkshire has asked to "increase the percentage ownership cap to 24.99% from the current 17% as a result of our share-repurchase program." Bloomberg has reported that as of March 31st, Berkshire has owned around 151.6 million shares, roughly 17% of American Express's stock. The firm is the biggest shareholder and has a stake worth about $11.6 billion based on the stock's closing price last Thursday.
Access RDI's American Express Research Report at:
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