American Electric Power (NASDAQ:AEP) Sets New 52-Week High - Should You Buy?

Key Points

• American Electric Power (NASDAQ:AEP) reached a new 52-week high of $115.84 recently, reflecting strong trading activity with over 2.36 million shares exchanged.
• Analysts have set varying price targets for AEP, with estimates ranging from $110.00 (UBS Group) to $133.00 (Evercore ISI), and a consensus average rating of "Hold."
• The company reported a quarterly EPS of $1.43, exceeding analyst expectations and showcasing an 11.1% revenue increase year-over-year, while maintaining a dividend yield of 3.2% with a payout ratio of 54.39%.

American Electric Power Company, Inc. (NASDAQ:AEP - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The company traded as high as $115.84 and last traded at $115.73, with a volume of 2363074 shares traded. The stock had previously closed at $114.06.

Analysts Set New Price Targets

Several equities research analysts recently commented on AEP shares. UBS Group upped their price target on shares of American Electric Power from $100.00 to $110.00 and gave the company a "sell" rating in a research report on Thursday, July 31st. Weiss Ratings reissued a "buy (b)" rating on shares of American Electric Power in a research note on Saturday, September 27th. Evercore ISI set a $133.00 target price on American Electric Power and gave the stock an "outperform" rating in a research report on Monday. Morgan Stanley lowered their price target on American Electric Power from $117.00 to $115.00 and set an "overweight" rating on the stock in a report on Thursday, September 25th. Finally, Raymond James Financial reissued an "outperform" rating and issued a $122.00 price objective (up from $115.00) on shares of American Electric Power in a research note on Thursday, July 31st. Seven investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $114.10.

American Electric Power Stock Performance

The firm has a market cap of $61.85 billion, a price-to-earnings ratio of 16.91, a price-to-earnings-growth ratio of 3.02 and a beta of 0.48. 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 stock has a fifty day moving average price of $111.02 and a 200 day moving average price of $106.78.

American Electric Power (NASDAQ:AEP - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $1.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.27 by $0.16. The company had revenue of $5.09 billion during the quarter, compared to analysts' expectations of $4.85 billion. American Electric Power had a net margin of 17.68% and a return on equity of 11.55%. The business's quarterly revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the company earned $1.25 earnings per share. American Electric Power has set its FY 2025 guidance at 6.570-6.770 EPS. As a group, analysts predict that American Electric Power Company, Inc. will post 5.87 earnings per share for the current year.

American Electric Power Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 10th. Investors of record on Friday, August 8th were issued a $0.93 dividend. This represents a $3.72 annualized dividend and a yield of 3.2%. The ex-dividend date was Friday, August 8th. American Electric Power's dividend payout ratio is currently 54.39%.

Insiders Place Their Bets

In other American Electric Power news, EVP Kelly J. Ferneau sold 1,006 shares of the stock in a transaction dated Thursday, October 2nd. The stock was sold at an average price of $112.00, for a total value of $112,672.00. Following the transaction, the executive vice president owned 5,676 shares of the company's stock, valued at approximately $635,712. This represents a 15.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Benjamin G. S. Fowke III sold 5,000 shares of the company's stock in a transaction on Friday, September 12th. The shares were sold at an average price of $108.65, for a total transaction of $543,250.00. Following the completion of the sale, the director owned 40,898 shares of the company's stock, valued at approximately $4,443,567.70. This represents a 10.89% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.07% of the company's stock.

Institutional Trading of American Electric Power

Hedge funds and other institutional investors have recently modified their holdings of the stock. Kingswood Wealth Advisors LLC raised its stake 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 purchasing 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 worth about $262,000. Venture Visionary Partners LLC raised its holdings in shares of American Electric Power by 7.3% in the 2nd quarter. Venture Visionary Partners LLC now owns 68,233 shares of the company's stock valued at $7,080,000 after purchasing an additional 4,616 shares during the period. Robertson Stephens Wealth Management LLC acquired a new stake in American Electric Power in the 1st quarter valued at about $205,000. Finally, GAMMA Investing LLC lifted its stake in American Electric Power by 24.5% in the 1st quarter. GAMMA Investing LLC now owns 19,678 shares of the company's stock valued at $2,150,000 after purchasing an additional 3,867 shares during 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.

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