American Electric Power (NASDAQ:AEP) Reaches New 1-Year High - What's Next?

Key Points

• American Electric Power (NASDAQ:AEP) shares hit a new 12-month high of $115.29 during trading, closing at $115.00 with significant volume trading of 3,600,829 shares.
• Analysts have varied perspectives on AEP, with Guggenheim setting a price target of $115.00 and a "buy" rating, while UBS issued a "sell" rating with a target of $110.00.
• The company reported strong quarterly earnings, posting $1.43 per share against an expectation of $1.27, resulting in revenue of $5.09 billion, an 11.1% increase year-over-year.

American Electric Power Company, Inc. (NASDAQ:AEP - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday . The company traded as high as $115.29 and last traded at $115.00, with a volume of 3600829 shares. The stock had previously closed at $113.58.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on AEP shares. Raymond James Financial reissued an "outperform" rating and issued a $122.00 price target (up previously from $115.00) on shares of American Electric Power in a report on Thursday, July 31st. Barclays boosted their target price on American Electric Power from $105.00 to $111.00 and gave the company an "equal weight" rating in a research note on Friday, August 1st. Scotiabank raised their price target on American Electric Power from $102.00 to $114.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 31st. Citigroup boosted their price objective on American Electric Power from $102.00 to $109.00 and gave the company a "neutral" rating in a research report on Wednesday, May 7th. Finally, Wells Fargo & Company raised their target price on shares of American Electric Power from $107.00 to $114.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 7th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and five have given a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $111.29.

American Electric Power Trading Up 0.2%

The stock has a market capitalization of $60.82 billion, a P/E ratio of 16.63, a P/E/G ratio of 3.01 and a beta of 0.40. The company has a current ratio of 0.55, a quick ratio of 0.41 and a debt-to-equity ratio of 1.33. The business has a 50-day moving average price of $105.52 and a two-hundred day moving average price of $104.43.

American Electric Power (NASDAQ:AEP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.27 by $0.16. American Electric Power had a net margin of 17.68% and a return on equity of 11.55%. The business had revenue of $5.09 billion for the quarter, compared to analyst estimates of $4.85 billion. During the same quarter last year, the business posted $1.25 EPS. The firm's revenue for the quarter was up 11.1% on a year-over-year basis. On average, analysts expect that American Electric Power Company, Inc. will post 5.87 EPS for the current fiscal year.

American Electric Power Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 10th. Shareholders of record on Friday, August 8th will be given a $0.93 dividend. The ex-dividend date is Friday, August 8th. This represents a $3.72 dividend on an annualized basis and a yield of 3.3%. American Electric Power's dividend payout ratio (DPR) is currently 54.39%.

Insider Buying and Selling at American Electric Power

In related news, EVP Quinton S. Lies sold 10,141 shares of American Electric Power stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $102.68, for a total transaction of $1,041,277.88. Following the sale, the executive vice president directly owned 9,658 shares in the company, valued at $991,683.44. This trade represents a 51.22% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP David Matthew Feinberg sold 8,058 shares of the company's stock in a transaction that occurred on Tuesday, June 17th. The shares were sold at an average price of $101.74, for a total transaction of $819,820.92. Following the completion of the transaction, the executive vice president owned 10,274 shares of the company's stock, valued at approximately $1,045,276.76. This trade represents a 43.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 34,314 shares of company stock valued at $3,508,293 over the last quarter. Company insiders own 0.07% of the company's stock.

Institutional Trading of American Electric Power

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Kingswood Wealth Advisors LLC boosted its holdings in shares of American Electric Power by 14.8% during the 1st quarter. Kingswood Wealth Advisors LLC now owns 3,331 shares of the company's stock worth $364,000 after buying an additional 430 shares in the last quarter. Ritholtz Wealth Management acquired a new position in shares of American Electric Power during the 1st quarter valued at $262,000. Robertson Stephens Wealth Management LLC acquired a new stake in American Electric Power in the first quarter worth $205,000. GAMMA Investing LLC grew its holdings in American Electric Power by 24.5% in the first quarter. GAMMA Investing LLC now owns 19,678 shares of the company's stock worth $2,150,000 after purchasing an additional 3,867 shares during the period. Finally, Wealth Enhancement Advisory Services LLC increased its stake in American Electric Power by 26.1% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 355,516 shares of the company's stock valued at $38,848,000 after purchasing an additional 73,488 shares in the last quarter. Institutional investors and hedge funds own 75.24% of the company's stock.

American Electric Power Company Profile

American Electric Power Company, Inc, an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments.