Principal Financial Group Inc. Boosts Stock Holdings in American Electric Power Company, Inc. $AEP

Key Points

• Principal Financial Group increased its stake in American Electric Power by 3.7% in the fourth quarter, buying 24,247 additional shares and bringing its total holding to 673,954 shares worth about $77.7 million.
• AEP posted a strong quarterly earnings beat, reporting $1.64 EPS versus $1.57 expected and revenue of $6.02 billion, while also lifting full-year guidance to 6.12–6.42 EPS for FY 2026.
• Analysts and recent company updates remain broadly constructive, with multiple firms raising price targets and AEP highlighting a $78 billion capital plan plus projected growth tied to rising data-center-driven demand, though regulatory uncertainty around PJM membership remains a risk.

Principal Financial Group Inc. lifted its position in American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) by 3.7% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 673,954 shares of the company's stock after purchasing an additional 24,247 shares during the period. Principal Financial Group Inc. owned about 0.13% of American Electric Power worth $77,714,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently added to or reduced their stakes in the company. Czech National Bank increased its stake in shares of American Electric Power by 3.9% during the fourth quarter. Czech National Bank now owns 141,141 shares of the company's stock worth $16,275,000 after purchasing an additional 5,314 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH lifted its stake in American Electric Power by 2.9% in the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 293,033 shares of the company's stock valued at $33,869,000 after buying an additional 8,302 shares in the last quarter. Commerzbank Aktiengesellschaft FI boosted its holdings in American Electric Power by 462.1% in the 3rd quarter. Commerzbank Aktiengesellschaft FI now owns 52,953 shares of the company's stock worth $5,958,000 after buying an additional 43,533 shares during the last quarter. Benjamin Edwards Inc. boosted its holdings in American Electric Power by 228.6% in the 3rd quarter. Benjamin Edwards Inc. now owns 51,659 shares of the company's stock worth $5,812,000 after buying an additional 35,938 shares during the last quarter. Finally, GF Fund Management CO. LTD. increased its stake in American Electric Power by 7.4% during the 4th quarter. GF Fund Management CO. LTD. now owns 114,224 shares of the company's stock worth $13,171,000 after buying an additional 7,833 shares in the last quarter. 75.24% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting American Electric Power

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

• Positive Sentiment: AEP reported better‑than‑expected Q1 results and several analysts raised forecasts following the print, supporting upside to consensus estimates. These Analysts Increase Their Forecasts On American Electric Power After Better-Than-Expected Q1 Earnings
• Positive Sentiment: GAAP net income rose ~9% in Q1 (reported $874M), reinforcing the operational beat and supporting rate‑base growth narratives. AEP Q1 2026 GAAP earnings rise 9% to $874m
• Positive Sentiment: Wells Fargo raised its price target to $148 and moved to an "overweight" rating, signaling buy-side support and implying double-digit upside from current levels. Wells Fargo PT raise
• Positive Sentiment: AEP said contracted capacity expectations could surge to ~63 GW with ~90% tied to data centers — a demand stream that boosts long‑term load growth and contracted revenues. AEP sees contracted capacity surge to 63GW, 90% tied to data centers
• Positive Sentiment: Management outlined a $78B capital plan and reiterated multi‑year EPS growth targets (7%–9% through 2030) and FY‑2026 EPS guidance, underpinning long‑term rate‑base driven growth. AEP outlines $78B capital plan
• Neutral Sentiment: Citigroup raised its price target to $148 but kept a "neutral" rating — the PT lift is supportive, but the unchanged stance tempers immediate buy pressure. Citigroup PT raise to $148
• Neutral Sentiment: Mizuho and Barclays nudged targets higher (Mizuho to $141, Barclays to $136) but kept neutral/equal‑weight stances — modest confirmations rather than aggressive upgrades. Mizuho PT raise
• Negative Sentiment: CEO publicly criticized PJM's slow interconnection process and said AEP is reviewing membership (possible exit from PJM/SPP), raising regulatory/market access risk and creating near‑term investor uncertainty. AEP CEO Vents Frustration With PJM, Says Membership is Under Review

American Electric Power Stock Down 0.6%

Shares of AEP opened at $131.76 on Friday. American Electric Power Company, Inc. has a 52-week low of $97.46 and a 52-week high of $139.44. The company has a quick ratio of 0.33, a current ratio of 0.53 and a debt-to-equity ratio of 1.42. The stock has a fifty day simple moving average of $132.70 and a two-hundred day simple moving average of $124.16. The company has a market capitalization of $71.69 billion, a PE ratio of 19.35, a price-to-earnings-growth ratio of 3.11 and a beta of 0.56.

American Electric Power (NASDAQ:AEP - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $1.64 earnings per share for the quarter, beating the consensus estimate of $1.57 by $0.07. American Electric Power had a net margin of 16.29% and a return on equity of 10.21%. The firm had revenue of $6.02 billion for the quarter, compared to analysts' expectations of $5.72 billion. During the same quarter in the previous year, the company posted $1.54 EPS. The company's revenue 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 forecast that American Electric Power Company, Inc. will post 6.34 EPS for the current year.

American Electric Power Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Friday, May 8th will be paid a $0.95 dividend. The ex-dividend date of this dividend is Friday, May 8th. This represents a $3.80 annualized dividend and a dividend yield of 2.9%. American Electric Power's dividend payout ratio is 56.72%.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on AEP shares. Scotiabank raised their target price on American Electric Power from $131.00 to $140.00 and gave the company a "sector perform" rating in a research report on Wednesday. Barclays boosted their price target on American Electric Power from $135.00 to $136.00 and gave the stock an "equal weight" rating in a research report on Wednesday. LADENBURG THALM/SH SH upgraded American Electric Power from a "neutral" rating to a "buy" rating and set a $148.00 price objective on the stock in a report on Wednesday, March 4th. Jefferies Financial Group reaffirmed a "buy" rating and set a $150.00 target price on shares of American Electric Power in a research note on Friday, February 20th. Finally, Truist Financial began coverage on shares of American Electric Power in a report on Tuesday, April 21st. They set a "buy" rating and a $148.00 target price for the company. 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's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $141.24.

Insider Buying and Selling

In other news, EVP Kelly J. Ferneau sold 1,351 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $131.46, for a total transaction of $177,602.46. Following the completion of the sale, the executive vice president owned 15,410 shares in the company, valued at $2,025,798.60. This trade represents a 8.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Phillip R. Ulrich sold 4,106 shares of the company's stock in a transaction that occurred on Friday, February 27th. The shares were sold at an average price of $132.08, for a total value of $542,320.48. Following the completion of the transaction, the executive vice president owned 42,263 shares in the company, valued at $5,582,097.04. This represents a 8.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.05% of the stock is owned by company insiders.

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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