American Electric Power Company, Inc. (NASDAQ:AEP) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• AEP has a “Moderate Buy” consensus from 22 brokerages, with 13 buy ratings and nine hold ratings; the average 12-month price target is $141.43.
• Second-quarter revenue rose 7% year over year to $5.45 billion, exceeding estimates, but EPS of $1.36 missed the $1.48 consensus. AEP maintained 2026 earnings guidance of $6.25–$6.55 per share, supported by growing electricity demand from data centers and AI infrastructure.
• AEP declared a quarterly dividend of $0.95 per share, equivalent to $3.80 annually and a 3.0% yield; institutional investors own 75.24% of the company’s stock.

Shares of American Electric Power Company, Inc. (NASDAQ:AEP - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twenty-two brokerages that are presently covering the firm, Marketbeat reports. Nine equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating on the company. The average 1 year target price among brokers that have issued a report on the stock in the last year is $141.4286.

AEP has been the topic of a number of analyst reports. Barclays increased their target price on shares of American Electric Power from $136.00 to $138.00 and gave the stock an "equal weight" rating in a research report on Monday, July 13th. Mizuho cut their price target on American Electric Power from $141.00 to $135.00 and set a "neutral" rating for the company in a research note on Friday. JPMorgan Chase & Co. reduced their price target on American Electric Power from $141.00 to $140.00 and set a "neutral" rating on the stock in a research report on Friday, May 15th. The Goldman Sachs Group raised their price objective on American Electric Power from $141.00 to $142.00 and gave the stock a "buy" rating in a research note on Wednesday, April 15th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of American Electric Power in a report on Monday, June 1st.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Essex Financial Services Inc. increased its holdings in American Electric Power by 0.9% in the 1st quarter. Essex Financial Services Inc. now owns 8,215 shares of the company's stock valued at $1,077,000 after buying an additional 75 shares during the period. Cornerstone Advisory LLC lifted its holdings in shares of American Electric Power by 1.3% during the 1st quarter. Cornerstone Advisory LLC now owns 5,831 shares of the company's stock worth $764,000 after acquiring an additional 75 shares during the period. Financial Enhancement Group LLC lifted its holdings in shares of American Electric Power by 3.3% during the 1st quarter. Financial Enhancement Group LLC now owns 2,383 shares of the company's stock worth $319,000 after acquiring an additional 76 shares during the period. Community Trust & Investment Co. boosted its position in shares of American Electric Power by 1.7% during the 2nd quarter. Community Trust & Investment Co. now owns 4,730 shares of the company's stock worth $647,000 after acquiring an additional 77 shares in the last quarter. Finally, J2 Capital Management Inc boosted its position in shares of American Electric Power by 2.0% during the 1st quarter. J2 Capital Management Inc now owns 4,099 shares of the company's stock worth $537,000 after acquiring an additional 79 shares in the last quarter. Institutional investors and hedge funds own 75.24% of the company's stock.

American Electric Power Stock Performance

Shares of American Electric Power stock opened at $127.85 on Monday. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.38 and a current ratio of 0.50. The firm has a 50-day moving average of $131.80 and a 200-day moving average of $129.85. American Electric Power has a 52-week low of $105.70 and a 52-week high of $140.58. The stock has a market cap of $69.60 billion, a PE ratio of 21.93, a PEG ratio of 2.30 and a beta of 0.52.

American Electric Power (NASDAQ:AEP - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing analysts' consensus estimates of $1.48 by ($0.12). American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The business had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the prior year, the business posted $1.43 earnings per share. American Electric Power's revenue was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. As a group, sell-side analysts forecast that American Electric Power will post 6.35 EPS for the current year.

American Electric Power Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be given a $0.95 dividend. The ex-dividend date is Monday, August 10th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 3.0%. American Electric Power's dividend payout ratio (DPR) is presently 55.80%.

More American Electric Power News

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: AEP raised its 2026 operating earnings guidance to $6.25–$6.55 per share, citing robust demand from data centers, artificial-intelligence infrastructure and other large customers. Reuters article
• Positive Sentiment: Management expanded contracted and prospective load additions to approximately 69 gigawatts through 2030 and outlined a roughly $78 billion capital plan. AEP also secured about 13 GW of gas-fired turbine capacity, positioning it to serve rising power demand and potentially drive long-term revenue growth. Zacks article
• Positive Sentiment: Second-quarter revenue increased 7% year over year to $5.45 billion, exceeding the $5.34 billion analyst estimate. The company also expects load growth to help offset costs and provide customer savings through federal loan guarantees and grants. AEP earnings release
• Neutral Sentiment: Mizuho lowered its AEP price target from $141 to $135 and moved to a “neutral” rating. The revised target still implies potential upside, but the reduction signals more cautious expectations after the recent earnings update. Benzinga article
• Negative Sentiment: Operating earnings came in at $1.36 per share, below the $1.48–$1.49 consensus and down from $1.43 a year earlier. Tax timing and the impact of a prior transaction contributed to the shortfall, creating near-term pressure despite the stronger outlook. Zacks earnings article

About American Electric Power

American Electric Power NASDAQ: AEP is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.

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