HSBC Begins Coverage on American Electric Power (NASDAQ:AEP)

Key Points

• HSBC initiated coverage of American Electric Power with a Buy rating and a $145.90 price target, implying approximately 14.5% upside from the prior close.
• Analyst sentiment is broadly positive: 16 analysts rate AEP a Buy and eight rate it Hold, producing a “Moderate Buy” consensus and an average price target of $138.29.
• AEP’s latest quarter showed mixed results, with revenue rising 7% year over year to $5.45 billion but EPS of $1.36 falling short of the $1.48 consensus estimate.

Equities research analysts at HSBC assumed coverage on shares of American Electric Power (NASDAQ:AEP - Get Free Report) in a research report issued to clients and investors on Thursday, Marketbeat.com reports. The brokerage set a "buy" rating and a $145.90 price target on the stock. HSBC's price objective would indicate a potential upside of 14.53% from the company's previous close.

Several other equities research analysts also recently commented on AEP. BTIG Research upgraded shares of American Electric Power from a "neutral" rating to a "buy" rating and set a $147.00 target price on the stock in a research report on Tuesday. TD Cowen reiterated a "buy" rating on shares of American Electric Power in a research report on Wednesday, September 9th. Truist Financial decreased their target price on shares of American Electric Power from $146.00 to $139.00 and set a "buy" rating for the company in a research report on Monday, August 17th. UBS Group set a $135.00 price objective on American Electric Power in a research note on Monday. Finally, Citigroup lowered their target price on American Electric Power from $148.00 to $142.00 and set a "neutral" rating for the company in a report on Wednesday, August 5th. Sixteen research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, American Electric Power has an average rating of "Moderate Buy" and an average price target of $138.29.

American Electric Power Stock Performance

NASDAQ:AEP opened at $127.39 on Thursday. The company has a current ratio of 0.50, a quick ratio of 0.38 and a debt-to-equity ratio of 1.44. The stock has a 50 day simple moving average of $122.80 and a 200 day simple moving average of $128.49. American Electric Power has a 1-year low of $112.54 and a 1-year high of $140.58. The stock has a market cap of $69.35 billion, a P/E ratio of 21.85, a PEG ratio of 2.63 and a beta of 0.48.

American Electric Power (NASDAQ:AEP - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.34 billion. During the same quarter last year, the business earned $1.43 EPS. American Electric Power's revenue was up 7.0% on a year-over-year basis. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Research analysts anticipate that American Electric Power will post 6.39 earnings per share for the current year.

Insider Activity at American Electric Power

In other news, CAO Kate Dixon sold 2,000 shares of the business's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $125.00, for a total transaction of $250,000.00. Following the completion of the transaction, the chief accounting officer owned 15,856 shares of the company's stock, valued at approximately $1,982,000. The trade was a 11.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.05% of the stock is owned by company insiders.

Hedge Funds Weigh In On American Electric Power

A number of large investors have recently added to or reduced their stakes in AEP. Costello Asset Management INC increased its position in shares of American Electric Power by 100.0% in the first quarter. Costello Asset Management INC now owns 200 shares of the company's stock valued at $26,000 after acquiring an additional 100 shares during the period. Elevation Wealth Partners LLC increased its position in American Electric Power by 118.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 194 shares of the company's stock valued at $27,000 after purchasing an additional 105 shares during the period. Parvin Asset Management LLC purchased a new stake in shares of American Electric Power in the 2nd quarter worth about $27,000. Caitlin John LLC bought a new stake in American Electric Power during the 2nd quarter valued at approximately $27,000. Finally, Premier Financial Group purchased a new position in shares of American Electric Power in the 2nd quarter valued at approximately $28,000. Hedge funds and other institutional investors own 75.24% of the company's stock.

American Electric Power News Roundup

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

• Positive Sentiment: Analyst upgrades improve sentiment. BTIG upgraded AEP to Buy from Neutral, citing expectations that growth will accelerate. Zacks also raised the stock to Rank #2 (Buy), reflecting improving earnings prospects. BTIG upgrades AEP Zacks upgrades AEP
• Positive Sentiment: Dividend increased for the 15th consecutive year. AEP raised its quarterly dividend by $0.02 to $0.97 per share, payable December 10 to shareholders of record November 10. The new annualized payout is $3.88, representing an indicated yield of approximately 3.0%. AEP dividend increase
• Positive Sentiment: Potential earnings catalyst is approaching. Wall Street expects earnings growth in AEP’s upcoming quarterly report, and Zacks says the company has indicators that could support an earnings beat. AEP earnings expectations
• Positive Sentiment: Amazon-linked nuclear development could add long-term growth. A proposed nuclear plant involving Amazon, AEP and X-energy is drawing local attention and could support future power-demand growth, though the project remains subject to approvals and execution risks. Proposed Amazon-AEP nuclear plant
• Neutral Sentiment: Analyst views are mixed. While BTIG turned bullish, other coverage describes analysts as neutral, and JPMorgan lowered its price expectations for AEP stock. This may limit upside until earnings or project developments provide further confirmation.
• Negative Sentiment: Dividend sustainability is a concern. Commentary questions whether AEP’s cash flow can comfortably support continued payout growth, potentially weighing on income-focused investors despite the latest increase. AEP dividend sustainability analysis

About American Electric Power

American Electric Power NASDAQ: AEP is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and institutional customers. Through its operating companies, AEP provides regulated electric service and manages power generation assets using a mix of energy resources, including natural gas, coal, nuclear, hydroelectric and renewable energy.

AEP operates one of the largest electric transmission systems in the United States and supplies electricity across portions of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

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