Morgan Stanley Lowers American Electric Power (NASDAQ:AEP) Price Target to $129.00

Key Points

• Morgan Stanley cut its price target on American Electric Power to $129 from $136, while keeping an overweight rating on the stock.
• Despite the lower target, AEP was trading around $129.50 on Thursday, near its 50-day average and within range of its 52-week high of $139.44.
• The utility recently posted better-than-expected Q1 earnings, with EPS of $1.64 and revenue of $6.02 billion, both above analyst estimates.

American Electric Power (NASDAQ:AEP - Get Free Report) had its price target lowered by Morgan Stanley from $136.00 to $129.00 in a report released on Thursday,MarketScreener reports. The brokerage currently has an "overweight" rating on the stock. Morgan Stanley's target price would suggest a potential downside of 0.38% from the stock's previous close.

AEP has been the subject of a number of other reports. The Goldman Sachs Group boosted their price objective on American Electric Power from $141.00 to $142.00 and gave the stock a "buy" rating in a report on Wednesday, April 15th. Scotiabank lifted 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, May 6th. Jefferies Financial Group reiterated a "buy" rating and set a $150.00 price target on shares of American Electric Power in a report on Friday, February 20th. Wall Street Zen lowered American Electric Power from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Finally, Citigroup raised their price objective on American Electric Power from $132.00 to $148.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $141.24.

American Electric Power Stock Up 0.5%

Shares of AEP traded up $0.63 during trading hours on Thursday, reaching $129.50. The stock had a trading volume of 334,031 shares, compared to its average volume of 3,568,015. The firm has a 50-day simple moving average of $132.04 and a 200 day simple moving average of $124.87. American Electric Power has a 12 month low of $100.72 and a 12 month high of $139.44. The company has a current ratio of 0.53, a quick ratio of 0.39 and a debt-to-equity ratio of 1.42. The company has a market capitalization of $70.46 billion, a price-to-earnings ratio of 19.02, a P/E/G ratio of 2.57 and a beta of 0.56.

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

Insider Buying and Selling at American Electric Power

In related news, EVP Kelly J. Ferneau sold 1,351 shares of the stock in a transaction dated 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 transaction, the executive vice president owned 15,410 shares in the company, valued at approximately $2,025,798.60. This represents a 8.06% 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 link. Also, EVP Phillip R. Ulrich sold 4,106 shares of the firm's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $132.08, for a total transaction of $542,320.48. Following the sale, the executive vice president owned 42,263 shares of the company's stock, valued at $5,582,097.04. This trade represents a 8.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of AEP. Activest Wealth Management raised its stake in shares of American Electric Power by 72.2% in the fourth quarter. Activest Wealth Management now owns 217 shares of the company's stock valued at $25,000 after buying an additional 91 shares during the period. Dogwood Wealth Management LLC increased its holdings in American Electric Power by 330.2% in the 3rd quarter. Dogwood Wealth Management LLC now owns 228 shares of the company's stock worth $26,000 after acquiring an additional 175 shares during the last quarter. Optima Capital LLC purchased a new stake in American Electric Power in the 4th quarter worth about $26,000. Rakuten Securities Inc. raised its stake in American Electric Power by 7,300.0% in the 4th quarter. Rakuten Securities Inc. now owns 222 shares of the company's stock valued at $26,000 after acquiring an additional 219 shares during the period. Finally, Costello Asset Management INC lifted its holdings in American Electric Power by 100.0% during the first quarter. Costello Asset Management INC now owns 200 shares of the company's stock valued at $26,000 after purchasing an additional 100 shares during the last quarter. 75.24% of the stock is owned by institutional investors.

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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