KeyCorp Cuts Earnings Estimates for American Electric Power

Key Points

• KeyCorp lowered AEP’s Q3 2026 EPS estimate to $2.09 from $2.19, while maintaining an Overweight rating and $133 price target. The broader analyst consensus remains Moderate Buy, with a $138.91 consensus price target.
• AEP’s latest quarter missed EPS expectations, reporting $1.36 versus the $1.48 consensus, although revenue rose 7% year over year to $5.45 billion. The company’s FY 2026 EPS guidance is $6.25–$6.55, and its quarterly dividend equates to a 3.0% annualized yield.
• AEP is pursuing major capacity investments to serve data-center demand, including a planned $4 billion, 702-megawatt Wyoming fuel-cell project tied to Google and a potential 1.6-gigawatt agreement with Mainspring Energy. These initiatives could strengthen long-term contracted earnings but may increase financing and execution risks.

American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) - Investment analysts at KeyCorp lowered their Q3 2026 earnings estimates for shares of American Electric Power in a research report issued on Monday, October 12th. KeyCorp analyst S. Karp now anticipates that the company will post earnings per share of $2.09 for the quarter, down from their previous estimate of $2.19. KeyCorp has an "Overweight" rating and a $133.00 price target on the stock. The consensus estimate for American Electric Power's current full-year earnings is $6.38 per share. KeyCorp also issued estimates for American Electric Power's Q4 2026 earnings at $1.34 EPS, FY2026 earnings at $6.42 EPS, FY2027 earnings at $6.84 EPS, FY2029 earnings at $8.26 EPS and FY2030 earnings at $9.07 EPS.

A number of other research analysts have also weighed in on AEP. TD Cowen reissued a "buy" rating on shares of American Electric Power in a report on Wednesday, September 9th. Weiss Ratings restated a "buy (b)" rating on shares of American Electric Power in a research note on Thursday, August 27th. Barclays cut their price target on American Electric Power from $129.00 to $120.00 and set an "equal weight" rating for the company in a report on Monday. LADENBURG THALM/SH SH reduced their price objective on shares of American Electric Power from $148.00 to $143.00 and set a "buy" rating for the company in a research report on Thursday, June 18th. Finally, Mizuho decreased their price objective on shares of American Electric Power from $141.00 to $135.00 and set a "neutral" rating on the stock in a report on Friday, July 31st. Fourteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, American Electric Power has a consensus rating of "Moderate Buy" and a consensus price target of $138.91.

American Electric Power Stock Performance

AEP opened at $126.13 on Thursday. American Electric Power has a 12-month low of $112.54 and a 12-month high of $140.58. The stock has a market cap of $68.67 billion, a price-to-earnings ratio of 21.63, a PEG ratio of 2.66 and a beta of 0.48. The business has a 50 day moving average of $122.63 and a 200-day moving average of $128.67. The company has a quick ratio of 0.38, a current ratio of 0.50 and a debt-to-equity ratio of 1.44.

American Electric Power (NASDAQ:AEP - Get Free Report) last posted 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 business had revenue of $5.45 billion for 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 company's revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.43 EPS. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS.

American Electric Power Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 10th were paid a $0.95 dividend. The ex-dividend date was Monday, August 10th. This represents a $3.80 annualized dividend and a yield of 3.0%. American Electric Power's payout ratio is 65.18%.

Insider Transactions at American Electric Power

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

Institutional Investors Weigh In On American Electric Power

A number of institutional investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in American Electric Power in the 2nd quarter valued at $6,980,601,000. Wellington Management Group LLP boosted its holdings in American Electric Power by 5.4% in the 2nd quarter. Wellington Management Group LLP now owns 13,872,005 shares of the company's stock worth $1,897,829,000 after buying an additional 715,613 shares during the period. Bank of America Corp DE purchased a new stake in shares of American Electric Power in the second quarter worth about $1,678,638,000. GQG Partners LLC bought a new stake in American Electric Power during the 2nd quarter worth approximately $1,404,094,000. Finally, Legal & General Group Plc purchased a new stake in shares of American Electric Power in the second quarter worth $680,638,000. Institutional investors own 75.24% of the company's stock.

American Electric Power News Summary

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

• Positive Sentiment: AEP plans to invest approximately $4 billion in a 702-megawatt Wyoming fuel-cell project under a 20-year power-purchase agreement with Google. The contract provides a long-term customer for the project and strengthens AEP’s position as a provider of dedicated power for rapidly expanding data-center demand. Reuters: American Electric Power to invest $4 billion in fuel cell project to power Google
• Positive Sentiment: KeyCorp maintained an Overweight rating and a $133 price target while raising its FY2026 EPS estimate to $6.42 from $6.36, FY2027 to $6.84 from $6.82, and Q4 2026 to $1.34 from $1.05. The revisions suggest improving expectations for AEP’s earnings growth, although KeyCorp slightly reduced its Q3 estimate. KeyBanc upgrades American Electric Power to Overweight
• Positive Sentiment: AEP is also pursuing a 1.6-gigawatt agreement with Mainspring Energy for mobile generation units. The deal could help the utility bring capacity online more quickly to serve large-load customers and data centers, supporting its broader demand-growth pipeline. Mainspring Energy Signs 1.6 GW Agreement with AEP
• Neutral Sentiment: The Wyoming project and other planned capacity additions could expand AEP’s regulated and contracted earnings base, but the multibillion-dollar commitments may increase financing needs and execution risk before the investments contribute meaningfully to earnings. Wall Street Journal: AEP to Invest $4 Billion in Fuel Cell Project
• Negative Sentiment: Barclays reportedly lowered its price target for AEP, creating a counterpoint to KeyCorp’s bullish view and potentially limiting near-term upside. KeyCorp also trimmed its Q3 2026 EPS estimate to $2.09 from $2.19 and slightly lowered its FY2030 estimate to $9.07 from $9.10. American Banking News: AEP Stock Price Target Cut by Barclays

American Electric Power Company Profile

American Electric Power NASDAQ: AEP is a regulated electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and other customers. Through its operating companies, AEP owns and manages a diverse portfolio of power plants, electric distribution systems and one of the largest transmission networks in the United States.

AEP serves customers across parts of 11 states, including Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

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