American Electric Power Company, Inc. $AEP Stock Sold by Sterling Capital Management LLC

Key Points

• Sterling Capital Management cut its AEP stake by 48.9% in the third quarter, selling 40,434 shares and retaining 42,282 shares valued at approximately $5.0 million. Institutional investors collectively own 75.24% of the company.
• Analyst sentiment remains positive overall, with 16 Buy ratings and eight Holds, producing a “Moderate Buy” consensus and an average price target of $138.70. Recent views ranged from BTIG’s upgrade to Buy with a $147 target to target-price reductions from Mizuho and Scotiabank.
• AEP raised its quarterly dividend 2% to $0.97 per share, equal to an annualized $3.88 and a roughly 3% yield. However, the utility’s latest earnings missed estimates, while elevated debt and significant investment to serve data-center demand could pressure cash flow and dividend coverage.

Sterling Capital Management LLC lessened its stake in shares of American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) by 48.9% in the third quarter, according to its most recent filing with the SEC. The fund owned 42,282 shares of the company's stock after selling 40,434 shares during the period. Sterling Capital Management LLC's holdings in American Electric Power were worth $5,016,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. XXI Wealth LLC boosted its stake in shares of American Electric Power by 5.5% during the 3rd quarter. XXI Wealth LLC now owns 2,358 shares of the company's stock worth $280,000 after acquiring an additional 123 shares in the last quarter. Yousif Capital Management LLC grew its holdings in shares of American Electric Power by 1.1% in the 3rd quarter. Yousif Capital Management LLC now owns 67,848 shares of the company's stock worth $8,049,000 after acquiring an additional 765 shares during the last quarter. MBL Wealth LLC raised its position in shares of American Electric Power by 51.3% during the third quarter. MBL Wealth LLC now owns 5,808 shares of the company's stock worth $689,000 after purchasing an additional 1,970 shares during the period. Strategic Planning Group LLC raised its position in shares of American Electric Power by 4.5% during the third quarter. Strategic Planning Group LLC now owns 48,062 shares of the company's stock worth $5,702,000 after purchasing an additional 2,077 shares during the period. Finally, Indiana Trust & Investment Management Co raised its position in shares of American Electric Power by 1.8% during the third quarter. Indiana Trust & Investment Management Co now owns 5,667 shares of the company's stock worth $672,000 after purchasing an additional 100 shares during the period. 75.24% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have recently commented on AEP. Mizuho reduced their target price 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. Scotiabank dropped their price target on American Electric Power from $140.00 to $131.00 and set a "sector perform" rating on the stock in a research note on Wednesday, September 30th. BTIG Research upgraded American Electric Power from a "neutral" rating to a "buy" rating and set a $147.00 price objective on the stock in a report on Tuesday. Truist Financial cut their price objective on American Electric Power from $146.00 to $139.00 and set a "buy" rating on the stock in a report on Monday, August 17th. Finally, Wall Street Zen raised shares of American Electric Power from a "sell" rating to a "hold" rating in a research note on Saturday. Sixteen investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $138.70.

American Electric Power Stock Down 0.7%

AEP stock opened at $129.69 on Friday. American Electric Power Company, Inc. has a 12-month low of $112.54 and a 12-month high of $140.58. The company has a quick ratio of 0.38, a current ratio of 0.50 and a debt-to-equity ratio of 1.44. The company has a market cap of $70.60 billion, a price-to-earnings ratio of 22.25, a PEG ratio of 2.68 and a beta of 0.48. The company has a 50 day moving average of $122.99 and a two-hundred day moving average of $128.48.

American Electric Power (NASDAQ:AEP - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.36 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.48 by ($0.12). American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.34 billion. During the same period last year, the business earned $1.43 EPS. The company's quarterly 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. On average, equities analysts anticipate that American Electric Power Company, Inc. will post 6.40 earnings per share for the current fiscal year.

American Electric Power Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be given a dividend of $0.97 per share. The ex-dividend date of this dividend is Tuesday, November 10th. This is a positive change 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%. 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 business's stock in a transaction dated 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 owned 15,856 shares in the company, valued at $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 SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.05% of the company's stock.

Key Headlines Impacting American Electric Power

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

• Positive Sentiment: HSBC initiated coverage with a Buy rating and a $145.90 price target, implying meaningful upside from recent levels. Jefferies also maintains a target well above the stock, although it reduced its target to $146 from $148. HSBC coverage article Jefferies price target article
• Positive Sentiment: AI-related electricity demand is strengthening AEP’s growth outlook. The company has contracted large-load capacity additions of 69 gigawatts through 2030, with approximately 90% tied to data centers and cryptocurrency customers. AEP expects operating EPS to grow at more than 9% annually through 2030. AEP dividend and data-center demand article
• Positive Sentiment: AEP raised its quarterly dividend by 2% to $0.97 per share, bringing the forward yield to roughly 3%. Its approximately 65% trailing payout ratio is expected to decline toward 55%, suggesting improved dividend coverage as earnings grow.
• Positive Sentiment: AEP recently moved above its 200-day moving average, a technical signal that some investors interpret as evidence of improving long-term momentum. AEP moving average article
• Neutral Sentiment: Wall Street is focused on AEP’s third-quarter results and key operating metrics. The earnings preview could increase volatility as investors assess whether demand growth is translating into revenue and earnings performance. AEP earnings preview
• Negative Sentiment: Analysts are questioning whether AEP’s aggressive investment required to serve data centers could pressure cash flow and dividend safety. The company’s debt-to-equity ratio is already elevated, making financing and execution risks important issues for income-focused shareholders. AEP dividend risk comparison

American Electric Power Profile

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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