American Electric Power (NASDAQ:AEP) Issues Earnings Results, Beats Expectations By $0.09 EPS

Key Points

• American Electric Power reported quarterly EPS of $1.64, beating estimates by $0.09 with revenue up 10.2% year-over-year, and updated its FY 2026 guidance to $6.120–$6.420 in EPS.
• The company declared a quarterly dividend of $0.95 (ex-dividend May 8, payable June 10), implying a $3.80 annualized payout, a ~2.8% yield and a payout ratio of about 56.7%.
• Shares rose to $137.11 on the news (market cap ~$74.5B), and analysts collectively rate AEP a "Moderate Buy" with a consensus target around $138.18 after several recent price-target increases.

American Electric Power (NASDAQ:AEP - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $1.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.09, Zacks reports. American Electric Power had a return on equity of 10.46% and a net margin of 16.37%.During the same period in the previous year, the company posted $1.54 EPS. The firm's revenue for the quarter was up 10.2% on a year-over-year basis. American Electric Power updated its FY 2026 guidance to 6.120-6.420 EPS.

American Electric Power Price Performance

Shares of AEP stock traded up $2.45 during trading on Tuesday, hitting $137.11. The company had a trading volume of 393,174 shares, compared to its average volume of 3,281,670. The stock has a market capitalization of $74.53 billion, a price-to-earnings ratio of 20.45, a price-to-earnings-growth ratio of 3.22 and a beta of 0.56. The stock's 50-day moving average is $132.54 and its two-hundred day moving average is $123.83. The company has a quick ratio of 0.33, a current ratio of 0.45 and a debt-to-equity ratio of 1.37. American Electric Power has a 52 week low of $97.46 and a 52 week high of $139.36.

American Electric Power Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 8th will be given a $0.95 dividend. This represents a $3.80 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Friday, May 8th. American Electric Power's dividend payout ratio is 56.72%.

Insider Activity at American Electric Power

In other American Electric Power news, EVP Phillip R. Ulrich sold 4,106 shares of American Electric Power stock in a transaction that occurred on 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 directly owned 42,263 shares of the company's stock, valued at approximately $5,582,097.04. This trade represents a 8.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Kelly J. Ferneau sold 1,351 shares of the company's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $131.46, for a total transaction of $177,602.46. Following the completion of the sale, the executive vice president directly owned 15,410 shares of the company's stock, valued at $2,025,798.60. This trade represents a 8.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Compound Planning Inc. lifted its position in American Electric Power by 5.0% in the fourth quarter. Compound Planning Inc. now owns 11,068 shares of the company's stock valued at $1,276,000 after purchasing an additional 529 shares during the last quarter. Claris Financial LLC bought a new stake in American Electric Power during the 4th quarter valued at $312,000. Invesco Ltd. boosted its position in American Electric Power by 4.2% during the 4th quarter. Invesco Ltd. now owns 7,688,340 shares of the company's stock valued at $886,543,000 after buying an additional 313,123 shares during the period. Axxcess Wealth Management LLC grew its holdings in American Electric Power by 5.0% in the 4th quarter. Axxcess Wealth Management LLC now owns 42,736 shares of the company's stock worth $4,928,000 after acquiring an additional 2,026 shares during the last quarter. Finally, Corient Private Wealth LLC increased its position in shares of American Electric Power by 23.4% in the fourth quarter. Corient Private Wealth LLC now owns 196,707 shares of the company's stock valued at $22,682,000 after acquiring an additional 37,334 shares during the period. 75.24% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several brokerages have recently weighed in on AEP. TD Cowen upped their price target on American Electric Power from $137.00 to $141.00 and gave the company a "buy" rating in a research report on Friday, February 20th. Raymond James Financial upped their price target on American Electric Power from $138.00 to $143.00 and gave the company an "outperform" rating in a research report on Tuesday, April 21st. LADENBURG THALM/SH SH upgraded American Electric Power from a "neutral" rating to a "buy" rating and set a $148.00 price target on the stock in a research report on Wednesday, March 4th. Mizuho upped their price target on American Electric Power from $123.00 to $130.00 and gave the company a "neutral" rating in a research report on Friday, February 13th. Finally, Argus upped their price objective on shares of American Electric Power from $128.00 to $140.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, American Electric Power has a consensus rating of "Moderate Buy" and a consensus target price of $138.18.

American Electric Power Company Profile

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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