Goldman Sachs Group Inc. Grows Stock Position in American Electric Power Company, Inc. (NASDAQ:AEP)

Key Points

• Goldman Sachs Group Inc. increased its holdings in American Electric Power by 19.2%, making it the owner of approximately 4.19 million shares valued at around $458.2 million.
• In the most recent quarter, multiple institutional investors, including Intrust Bank and Associated Banc Corp, have also increased their stakes in American Electric Power, indicating strong interest among hedge funds.
• American Electric Power declared a quarterly dividend of $0.93 per share, reflecting an annual dividend yield of 3.3% and a payout ratio of 54.39%.

Goldman Sachs Group Inc. raised its position in shares of American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) by 19.2% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,193,299 shares of the company's stock after acquiring an additional 675,729 shares during the period. Goldman Sachs Group Inc. owned approximately 0.79% of American Electric Power worth $458,202,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also modified their holdings of the company. EQ Wealth Advisors LLC bought a new position in shares of American Electric Power during the 1st quarter valued at approximately $25,000. Fourth Dimension Wealth LLC bought a new position in shares of American Electric Power during the 4th quarter valued at approximately $28,000. Bank of New Hampshire bought a new position in shares of American Electric Power during the 1st quarter valued at approximately $28,000. MJT & Associates Financial Advisory Group Inc. bought a new position in American Electric Power in the 1st quarter valued at $33,000. Finally, IMA Advisory Services Inc. bought a new position in American Electric Power in the 1st quarter valued at $35,000. 75.24% of the stock is owned by hedge funds and other institutional investors.

American Electric Power Stock Down 1.1%

Shares of AEP traded down $1.23 during midday trading on Friday, reaching $112.50. 2,706,902 shares of the stock were exchanged, compared to its average volume of 3,661,537. American Electric Power Company, Inc. has a 52 week low of $89.91 and a 52 week high of $115.36. The company has a current ratio of 0.55, a quick ratio of 0.41 and a debt-to-equity ratio of 1.33. The company's 50 day moving average is $105.70 and its two-hundred day moving average is $104.58. The company has a market capitalization of $60.16 billion, a P/E ratio of 16.45, a PEG ratio of 2.99 and a beta of 0.40.

American Electric Power (NASDAQ:AEP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.27 by $0.16. The business had revenue of $5.09 billion for the quarter, compared to the consensus estimate of $4.85 billion. American Electric Power had a return on equity of 11.55% and a net margin of 17.68%. The business's revenue was up 11.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.25 EPS. On average, sell-side analysts anticipate that American Electric Power Company, Inc. will post 5.87 earnings per share for the current year.

American Electric Power Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 8th will be paid a dividend of $0.93 per share. This represents a $3.72 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Friday, August 8th. American Electric Power's dividend payout ratio is 54.39%.

Analysts Set New Price Targets

Several equities analysts have commented on AEP shares. Scotiabank upped their price objective on American Electric Power from $102.00 to $114.00 and gave the company a "sector perform" rating in a research report on Thursday, July 31st. Wells Fargo & Company upped their price objective on American Electric Power from $107.00 to $114.00 and gave the company an "equal weight" rating in a research report on Wednesday, May 7th. BMO Capital Markets upped their price objective on American Electric Power from $111.00 to $115.00 and gave the company an "outperform" rating in a research report on Monday, April 21st. UBS Group upped their price objective on American Electric Power from $100.00 to $110.00 and gave the company a "sell" rating in a research report on Thursday, July 31st. Finally, Morgan Stanley cut their price objective on American Electric Power from $114.00 to $113.00 and set an "overweight" rating on the stock in a research report on Thursday, May 22nd. One analyst has rated the stock with a sell rating, eight have given a hold rating and five have issued a buy rating to the company's stock. According to data from MarketBeat.com, American Electric Power presently has an average rating of "Hold" and an average target price of $111.29.

Insiders Place Their Bets

In related news, EVP Quinton S. Lies sold 10,141 shares of the company's stock in a transaction on Monday, May 19th. The stock was sold at an average price of $102.68, for a total transaction of $1,041,277.88. Following the completion of the sale, the executive vice president directly owned 9,658 shares in the company, valued at $991,683.44. This represents a 51.22% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, EVP David Matthew Feinberg sold 8,058 shares of the company's stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $101.74, for a total value of $819,820.92. Following the sale, the executive vice president owned 10,274 shares of the company's stock, valued at $1,045,276.76. This trade represents a 43.96% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 34,314 shares of company stock valued at $3,508,293 over the last 90 days. 0.07% of the stock is currently owned by company insiders.

American Electric Power Profile

American Electric Power Company, Inc, an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments.