The Goldman Sachs Group Forecasts Strong Price Appreciation for American Electric Power (NASDAQ:AEP) Stock

Key Points

• The Goldman Sachs Group has increased its target price for American Electric Power (AEP) stock from $125.00 to $128.00, maintaining a "buy" rating which suggests an upside potential of 8.13%.
• Other analysts have mixed ratings for AEP; JPMorgan raised their target to $121.00 with a "neutral" rating, while Raymond James set a new price objective of $122.00, indicating a mostly positive outlook among market experts.
• In Q2, AEP reported earnings of $1.43 per share, surpassing estimates, with revenue growth of 11.1% year-over-year, and has set future guidance at $6.570-6.770 EPS for FY 2025.

American Electric Power (NASDAQ:AEP - Get Free Report) had its target price upped by equities research analysts at The Goldman Sachs Group from $125.00 to $128.00 in a research note issued on Tuesday,MarketScreener reports. The firm presently has a "buy" rating on the stock. The Goldman Sachs Group's price objective would suggest a potential upside of 8.13% from the stock's current price.

Several other equities analysts have also issued reports on AEP. JPMorgan Chase & Co. lifted their target price on shares of American Electric Power from $115.00 to $121.00 and gave the company a "neutral" rating in a report on Wednesday. Weiss Ratings reiterated a "buy (b)" rating on shares of American Electric Power in a research note on Wednesday, October 8th. LADENBURG THALM/SH SH reduced their price target on shares of American Electric Power from $112.00 to $108.50 and set a "neutral" rating for the company in a research report on Wednesday, September 10th. Raymond James Financial reaffirmed an "outperform" rating and issued a $122.00 price objective (up from $115.00) on shares of American Electric Power in a research report on Thursday, July 31st. Finally, Morgan Stanley reduced their target price on American Electric Power from $117.00 to $115.00 and set an "overweight" rating for the company in a report on Thursday, September 25th. Eight analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, American Electric Power currently has a consensus rating of "Hold" and an average target price of $116.91.

American Electric Power Trading Up 1.4%

AEP opened at $118.38 on Tuesday. The company has a quick ratio of 0.41, a current ratio of 0.55 and a debt-to-equity ratio of 1.33. American Electric Power has a 52 week low of $89.91 and a 52 week high of $119.06. The stock has a market cap of $63.31 billion, a PE ratio of 17.31, a PEG ratio of 3.09 and a beta of 0.48. The business has a 50 day moving average of $111.58 and a 200-day moving average of $107.31.

American Electric Power (NASDAQ:AEP - Get Free Report) last posted its quarterly earnings data 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 during 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 firm's quarterly 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 earnings per share. American Electric Power has set its FY 2025 guidance at 6.570-6.770 EPS. Equities research analysts predict that American Electric Power will post 5.87 earnings per share for the current fiscal year.

Insider Activity

In other news, EVP Kelly J. Ferneau sold 1,006 shares of American Electric Power stock in a transaction that occurred on Thursday, October 2nd. The shares were sold at an average price of $112.00, for a total transaction of $112,672.00. Following the sale, the executive vice president owned 5,676 shares in the company, valued at $635,712. This trade represents a 15.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Benjamin G. S. Fowke III sold 5,000 shares of the stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $108.65, for a total transaction of $543,250.00. Following the transaction, the director directly owned 40,898 shares of the company's stock, valued at $4,443,567.70. This trade represents a 10.89% decrease in their position. The disclosure for this sale can be found here. Insiders sold 11,006 shares of company stock worth $1,243,522 over the last 90 days. Company insiders own 0.07% of the company's stock.

Institutional Trading of American Electric Power

Several hedge funds have recently modified their holdings of the company. EQ Wealth Advisors LLC bought a new position in shares of American Electric Power in the 1st quarter valued at about $25,000. Advantage Trust Co lifted its position in American Electric Power by 57.1% in the second quarter. Advantage Trust Co now owns 275 shares of the company's stock worth $29,000 after buying an additional 100 shares during the last quarter. Montag A & Associates Inc. lifted its position in American Electric Power by 166.0% in the second quarter. Montag A & Associates Inc. now owns 282 shares of the company's stock worth $29,000 after buying an additional 176 shares during the last quarter. Bayforest Capital Ltd purchased a new position in American Electric Power during the first quarter worth $31,000. Finally, Missouri Trust & Investment Co bought a new position in American Electric Power during the second quarter valued at $31,000. 75.24% of the stock is owned by hedge funds and other institutional investors.

About American Electric Power

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.

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