American Electric Power Company, Inc. (NASDAQ:AEP) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• American Electric Power has a “Moderate Buy” consensus rating from 22 analysts, including 13 buy ratings and nine holds. The average 12-month price target is $140.05, above the reported share price of $120.03.
• AEP reported mixed quarterly results, with revenue rising 7% year over year to $5.45 billion but adjusted earnings of $1.36 per share falling short of the $1.48 consensus estimate. The company maintained fiscal 2026 EPS guidance of $6.25–$6.55.
• The utility pays a quarterly dividend of $0.95, equivalent to $3.80 annually and a 3.2% yield. Institutional investors own 75.24% of the company, while an executive recently sold 2,000 shares under a pre-arranged trading plan.

American Electric Power Company, Inc. (NASDAQ:AEP - Get Free Report) has been given an average rating of "Moderate Buy" by the twenty-two ratings firms that are covering the firm, MarketBeat.com reports. Nine equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating on the company. The average 1-year price target among brokerages that have issued ratings on the stock in the last year is $140.0476.

A number of research analysts have issued reports on AEP shares. Truist Financial lowered their price objective on American Electric Power from $146.00 to $139.00 and set a "buy" rating for the company in a research note on Monday, August 17th. Mizuho reduced their price target on American Electric Power from $141.00 to $135.00 and set a "neutral" rating for the company in a report on Friday, July 31st. Morgan Stanley reduced their price target on American Electric Power from $135.00 to $128.00 and set an "overweight" rating for the company in a report on Friday. Barclays lowered their price target on American Electric Power from $138.00 to $129.00 and set an "equal weight" rating for the company in a research report on Monday, August 3rd. Finally, BMO Capital Markets reissued a "market perform" rating on shares of American Electric Power in a research report on Monday.

Insider Activity

In other news, CAO Kate Dixon sold 2,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total transaction of $250,000.00. Following the sale, the chief accounting officer owned 15,856 shares in the company, valued at $1,982,000. This represents a 11.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On American Electric Power

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

American Electric Power Price Performance

Shares of AEP opened at $120.03 on Tuesday. American Electric Power has a fifty-two week low of $106.11 and a fifty-two week high of $140.58. The firm's 50-day simple moving average is $126.19 and its two-hundred day simple moving average is $129.87. The stock has a market cap of $65.34 billion, a PE ratio of 20.59, a price-to-earnings-growth ratio of 2.54 and a beta of 0.51. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.38 and a current ratio of 0.50.

American Electric Power (NASDAQ:AEP - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing analysts' consensus estimates of $1.48 by ($0.12). The company had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.34 billion. American Electric Power had a return on equity of 9.95% and a net margin of 13.78%.The business's revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.43 earnings per share. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Analysts anticipate that American Electric Power will post 6.38 earnings per share for the current fiscal year.

American Electric Power Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 10th were issued a $0.95 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $3.80 annualized dividend and a yield of 3.2%. American Electric Power's payout ratio is 65.18%.

American Electric Power Company Profile

American Electric Power Company, Inc NASDAQ: AEP is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and other customers. Its operations include regulated electric utilities, power generation facilities and one of the largest electricity transmission networks in the United States.

AEP provides energy delivery and related utility services through operating companies serving customers across Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

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