Morningstar Investment Management LLC Sells 16,298 Shares of American Electric Power Company, Inc. $AEP

Key Points

• Morningstar Investment Management cut its stake in American Electric Power by 81.9% in the fourth quarter, selling 16,298 shares and leaving it with 3,614 shares worth about $417,000.
• AEP reported better-than-expected quarterly results, posting EPS of $1.64 versus estimates of $1.57 and revenue of $6.02 billion versus $5.72 billion expected; management also set FY 2026 guidance at $6.12 to $6.42 per share.
• The company declared a quarterly dividend of $0.95 per share, implying an annualized yield of about 2.9%, while analysts currently rate the stock a Moderate Buy with an average price target of $141.24.

Morningstar Investment Management LLC reduced its holdings in American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) by 81.9% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 3,614 shares of the company's stock after selling 16,298 shares during the quarter. Morningstar Investment Management LLC's holdings in American Electric Power were worth $417,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in AEP. Activest Wealth Management increased its holdings in American Electric Power by 72.2% in the fourth quarter. Activest Wealth Management now owns 217 shares of the company's stock worth $25,000 after purchasing an additional 91 shares in the last quarter. Dogwood Wealth Management LLC increased its holdings in American Electric Power by 330.2% in the third quarter. Dogwood Wealth Management LLC now owns 228 shares of the company's stock worth $26,000 after purchasing an additional 175 shares in the last quarter. Optima Capital LLC bought a new stake in American Electric Power in the fourth quarter worth approximately $26,000. Rakuten Securities Inc. increased its holdings in American Electric Power by 7,300.0% in the fourth quarter. Rakuten Securities Inc. now owns 222 shares of the company's stock worth $26,000 after purchasing an additional 219 shares in the last quarter. Finally, Legacy Wealth Managment LLC ID increased its holdings in American Electric Power by 200.0% in the fourth quarter. Legacy Wealth Managment LLC ID now owns 231 shares of the company's stock worth $27,000 after purchasing an additional 154 shares in the last quarter. 75.24% of the stock is currently owned by institutional investors.

American Electric Power Stock Performance

Shares of American Electric Power stock opened at $131.59 on Tuesday. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.39 and a current ratio of 0.53. American Electric Power Company, Inc. has a 52 week low of $100.72 and a 52 week high of $139.44. The stock has a 50 day moving average price of $131.98 and a two-hundred day moving average price of $125.09. The stock has a market capitalization of $71.60 billion, a PE ratio of 19.32, a price-to-earnings-growth ratio of 2.62 and a beta of 0.56.

American Electric Power (NASDAQ:AEP - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $1.64 EPS for the quarter, beating analysts' consensus estimates of $1.57 by $0.07. American Electric Power had a return on equity of 10.21% and a net margin of 16.29%.The firm had revenue of $6.02 billion during the quarter, compared to analysts' expectations of $5.72 billion. During the same quarter last year, the firm posted $1.54 earnings per share. The company's revenue for the quarter was up 10.2% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.120-6.420 EPS. As a group, equities analysts anticipate that American Electric Power Company, Inc. will post 6.35 earnings per share for the current fiscal year.

American Electric Power Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Friday, May 8th will be paid a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Friday, May 8th. American Electric Power's dividend payout ratio (DPR) is 55.80%.

Insider Buying and Selling

In other American Electric Power news, EVP Phillip R. Ulrich sold 4,106 shares of the firm's stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $132.08, for a total value of $542,320.48. Following the completion of the sale, the executive vice president owned 42,263 shares of the company's stock, valued at approximately $5,582,097.04. This trade represents a 8.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.05% of the company's stock.

Analyst Ratings Changes

A number of brokerages have weighed in on AEP. UBS Group lifted their target price on American Electric Power from $132.00 to $135.00 in a report on Monday, March 9th. BMO Capital Markets lowered their target price on American Electric Power from $141.00 to $138.00 and set a "market perform" rating for the company in a report on Wednesday, April 22nd. Mizuho lifted their target price on American Electric Power from $130.00 to $141.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Truist Financial began coverage on American Electric Power in a report on Tuesday, April 21st. They issued a "buy" rating and a $148.00 target price for the company. Finally, TD Cowen lifted their target price on American Electric Power from $141.00 to $148.00 and gave the stock a "buy" rating in a report on Friday, May 15th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, American Electric Power currently has an average rating of "Moderate Buy" and an average price target of $141.24.

About American Electric Power

American Electric Power NASDAQ: AEP is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.

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