Scotiabank Brokers Increase Earnings Estimates for AEP

Key Points

• Scotiabank raised its FY2026 EPS estimate for AEP to $6.55 from $6.36 and forecasts $6.95 per share in FY2027. It maintained a “Sector Perform” rating and a $131 price target.
• AEP beat quarterly expectations, reporting EPS of $2.23 versus $2.04 estimated and revenue of $6.83 billion, up 13.7% year over year.
• AEP increased its quarterly dividend to $0.97 per share from $0.95, equivalent to an annualized $3.88 and a 3.0% yield.

American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) - Equities research analysts at Scotiabank upped their FY2026 earnings per share estimates for shares of American Electric Power in a research report issued to clients and investors on Monday, November 2nd. Scotiabank analyst A. Weisel now anticipates that the company will post earnings of $6.55 per share for the year, up from their previous forecast of $6.36. Scotiabank has a "Sector Perform" rating and a $131.00 price objective on the stock. The consensus estimate for American Electric Power's current full-year earnings is $6.41 per share. Scotiabank also issued estimates for American Electric Power's FY2027 earnings at $6.95 EPS.

American Electric Power (NASDAQ:AEP - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The company reported $2.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.04 by $0.19. American Electric Power had a net margin of 14.21% and a return on equity of 10.52%. The business had revenue of $6.83 billion for the quarter, compared to analysts' expectations of $6.55 billion. During the same quarter in the prior year, the company earned $1.80 earnings per share. The business's quarterly revenue was up 13.7% on a year-over-year basis.

Several other analysts have also recently issued reports on the company. Weiss Ratings reiterated a "buy (b)" rating on shares of American Electric Power in a research note on Thursday, August 27th. Truist Financial reduced their price target on American Electric Power from $146.00 to $139.00 and set a "buy" rating on the stock in a research report on Monday, August 17th. Wall Street Zen upgraded American Electric Power from a "sell" rating to a "hold" rating in a research note on Saturday, October 24th. Barclays boosted their price objective on American Electric Power from $120.00 to $132.00 and gave the stock an "equal weight" rating in a research report on Monday. Finally, TD Cowen restated a "buy" rating on shares of American Electric Power in a research note on Wednesday, September 9th. Sixteen equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $139.83.

American Electric Power Price Performance

Shares of AEP opened at $129.24 on Thursday. The company has a quick ratio of 0.40, a current ratio of 0.51 and a debt-to-equity ratio of 1.46. American Electric Power has a fifty-two week low of $112.54 and a fifty-two week high of $140.58. The company has a market cap of $70.38 billion, a P/E ratio of 20.88, a PEG ratio of 2.67 and a beta of 0.46. The firm's 50 day moving average price is $123.82 and its 200 day moving average price is $128.11.

American Electric Power Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be paid a $0.97 dividend. This is a boost from American Electric Power's previous quarterly dividend of $0.95. This represents a $3.88 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Tuesday, November 10th. American Electric Power's payout ratio is 61.39%.

Insider Transactions at American Electric Power

In other news, CAO Kate Dixon sold 2,000 shares of the company'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 directly owned 15,856 shares of the company's stock, valued at approximately $1,982,000. This represents a 11.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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

Several institutional investors have recently added to or reduced their stakes in the business. Costello Asset Management INC increased its holdings in 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 buying an additional 100 shares in the last quarter. Elevation Wealth Partners LLC raised its holdings 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 acquiring an additional 105 shares during the last quarter. Parvin Asset Management LLC purchased a new position in American Electric Power in the 2nd quarter valued at about $27,000. Caitlin John LLC purchased a new position in shares of American Electric Power during the second quarter valued at approximately $27,000. Finally, Premier Financial Group acquired a new stake in shares of American Electric Power during the second quarter worth $28,000. Hedge funds and other institutional investors own 75.24% of the company's stock.

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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