American Electric Power (NASDAQ:AEP) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded American Electric Power (NASDAQ:AEP) from a “hold” to a “sell,” though the broader analyst consensus still sits at a “Moderate Buy” with a target price around $141.29.
• AEP’s latest quarterly results beat expectations, posting $1.64 EPS versus the $1.57 consensus and revenue of $6.02 billion versus $5.72 billion expected, with revenue up 10.2% year over year.
• The stock was trading down about 1.2% at $130.16, while recent insider filings showed executives selling shares and institutional ownership remained high at 75.24%.

American Electric Power (NASDAQ:AEP - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

A number of other research firms have also recently commented on AEP. Scotiabank upped their price target on shares of American Electric Power from $131.00 to $140.00 and gave the stock a "sector perform" rating in a report on Wednesday. BMO Capital Markets cut their price target on shares of American Electric Power from $141.00 to $138.00 and set a "market perform" rating on the stock in a report on Wednesday, April 22nd. Seaport Research Partners upgraded shares of American Electric Power from a "neutral" rating to a "buy" rating and set a $145.00 price target on the stock in a report on Monday, April 20th. Wells Fargo & Company upped their price objective on shares of American Electric Power from $144.00 to $148.00 and gave the stock an "overweight" rating in a research note on Wednesday. Finally, Barclays upped their price objective on shares of American Electric Power from $135.00 to $136.00 and gave the stock an "equal weight" rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and nine have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $141.29.

American Electric Power Trading Down 1.2%

NASDAQ AEP opened at $130.16 on Friday. The company's 50-day moving average price is $132.70 and its 200-day moving average price is $124.16. The company has a current ratio of 0.53, a quick ratio of 0.33 and a debt-to-equity ratio of 1.42. The stock has a market cap of $70.82 billion, a PE ratio of 19.11, a PEG ratio of 3.09 and a beta of 0.56. American Electric Power has a 12 month low of $97.46 and a 12 month high of $139.44.

American Electric Power (NASDAQ:AEP - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $1.64 EPS for the quarter, topping analysts' consensus estimates of $1.57 by $0.07. The firm had revenue of $6.02 billion for the quarter, compared to analysts' expectations of $5.72 billion. American Electric Power had a net margin of 16.29% and a return on equity of 10.21%. The business's revenue for the quarter was up 10.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.54 earnings per share. American Electric Power has set its FY 2026 guidance at 6.120-6.420 EPS. Equities research analysts forecast that American Electric Power will post 6.34 earnings per share for the current year.

Insider Activity

In other news, EVP Phillip R. Ulrich sold 4,106 shares of the company's stock in a transaction dated Friday, February 27th. The shares were sold at an average price of $132.08, for a total transaction of $542,320.48. Following the transaction, the executive vice president owned 42,263 shares in the company, valued at $5,582,097.04. This represents a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Kelly J. Ferneau sold 1,351 shares of the company's stock in a transaction dated Tuesday, February 24th. The shares were sold at an average price of $131.46, for a total transaction of $177,602.46. Following the transaction, the executive vice president owned 15,410 shares in the company, valued at approximately $2,025,798.60. This trade represents a 8.06% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On American Electric Power

Hedge funds have recently modified their holdings of the stock. Activest Wealth Management increased its holdings in shares of American Electric Power by 72.2% during the fourth quarter. Activest Wealth Management now owns 217 shares of the company's stock valued at $25,000 after acquiring an additional 91 shares in the last quarter. Meeder Asset Management Inc. acquired a new position in shares of American Electric Power during the third quarter valued at about $26,000. Dogwood Wealth Management LLC increased its holdings in shares of American Electric Power by 330.2% during the third quarter. Dogwood Wealth Management LLC now owns 228 shares of the company's stock valued at $26,000 after acquiring an additional 175 shares in the last quarter. Optima Capital LLC acquired a new position in shares of American Electric Power during the fourth quarter valued at about $26,000. Finally, Rakuten Securities Inc. increased its holdings in shares of American Electric Power by 7,300.0% during the fourth quarter. Rakuten Securities Inc. now owns 222 shares of the company's stock valued at $26,000 after acquiring an additional 219 shares in the last quarter. Institutional investors and hedge funds own 75.24% of the company's stock.

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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