Rakuten Investment Management Inc. Purchases New Position in American Electric Power Company, Inc. $AEP

Key Points

• Rakuten Investment Management opened a new AEP position, acquiring 144,920 shares worth approximately $17.3 million in the third quarter. Institutional investors and hedge funds own 75.24% of the company’s stock.
• AEP reported quarterly EPS of $2.23, beating the $2.04 consensus, while revenue rose 13.7% year over year to $6.83 billion.
• The company raised its quarterly dividend from $0.95 to $0.97 per share, equivalent to $3.88 annually and a 3.0% yield. Analysts’ average rating is “Moderate Buy,” with an average price target of $139.83.

Rakuten Investment Management Inc. acquired a new stake in shares of American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) during the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 144,920 shares of the company's stock, valued at approximately $17,289,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Third View Private Wealth LLC lifted its stake in shares of American Electric Power by 15.5% in the third quarter. Third View Private Wealth LLC now owns 2,232 shares of the company's stock worth $265,000 after buying an additional 299 shares during the last quarter. Provenance Wealth Advisors LLC grew its stake in American Electric Power by 190.4% in the 3rd quarter. Provenance Wealth Advisors LLC now owns 1,699 shares of the company's stock valued at $202,000 after buying an additional 1,114 shares during the last quarter. Hughes Financial Services LLC grew its stake in American Electric Power by 12.3% in the 3rd quarter. Hughes Financial Services LLC now owns 1,162 shares of the company's stock valued at $150,000 after buying an additional 127 shares during the last quarter. Associated Banc Corp bought a new position in American Electric Power in the 3rd quarter worth $297,000. Finally, Putney Financial Group LLC bought a new position in American Electric Power in the 3rd quarter worth $59,000. 75.24% of the stock is currently owned by institutional investors and hedge funds.

American Electric Power Trading Down 0.5%

AEP opened at $129.24 on Thursday. The company has a current ratio of 0.51, a quick ratio of 0.40 and a debt-to-equity ratio of 1.46. The stock has a market capitalization of $70.38 billion, a PE ratio of 20.88, a PEG ratio of 2.67 and a beta of 0.46. American Electric Power Company, Inc. has a 1-year low of $112.54 and a 1-year high of $140.58. The firm has a 50-day moving average price of $123.82 and a two-hundred day moving average price of $128.11.

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, beating the consensus estimate of $2.04 by $0.19. American Electric Power had a return on equity of 10.52% and a net margin of 14.21%. The business had revenue of $6.83 billion for the quarter, compared to analyst estimates of $6.55 billion. During the same quarter in the prior year, the firm posted $1.80 earnings per share. The firm's revenue for the quarter was up 13.7% compared to the same quarter last year. As a group, equities analysts anticipate that American Electric Power Company, Inc. will post 6.41 earnings per share for the current fiscal year.

American Electric Power Increases Dividend

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

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Jefferies Financial Group set a $153.00 price objective on American Electric Power in a research note on Tuesday. Truist Financial lowered their target price 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. Wall Street Zen raised American Electric Power from a "sell" rating to a "hold" rating in a report on Saturday, October 24th. 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 report on Wednesday, September 30th. Finally, UBS Group set a $135.00 price target on American Electric Power in a report on Monday, October 19th. Sixteen investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $139.83.

Insider Activity

In related news, CAO Kate Dixon sold 2,000 shares of the 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 in the company, valued at approximately $1,982,000. This trade represents a 11.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.05% of the stock is owned by corporate insiders.

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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