Truist Financial Begins Coverage on American Electric Power (NASDAQ:AEP)

Key Points

• Truist Financial initiated coverage of American Electric Power (AEP) with a Buy rating and a $148 price target, implying about an 11% upside from the prior close.
• Broader analyst sentiment is a "Moderate Buy" (14 Buys, 9 Holds) with an average price target of $137.45, meaning Truist's target sits noticeably above the analyst average.
• AEP recently beat quarterly estimates (EPS $1.19 vs. $1.15; revenue $5.32B vs. $5.07B) and issued FY2026 guidance of $6.15–$6.45 earnings per share.

Investment analysts at Truist Financial initiated coverage on shares of American Electric Power (NASDAQ:AEP - Get Free Report) in a research report issued to clients and investors on Tuesday, MarketBeat reports. The firm set a "buy" rating and a $148.00 price target on the stock. Truist Financial's target price indicates a potential upside of 11.04% from the company's previous close.

AEP has been the topic of several other research reports. Barclays lifted their target price on American Electric Power from $128.00 to $135.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 15th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of American Electric Power in a research note on Wednesday, January 21st. Evercore lifted their target price on American Electric Power from $137.00 to $153.00 and gave the company an "outperform" rating in a research note on Thursday, March 5th. UBS Group lifted their target price on American Electric Power from $132.00 to $135.00 in a research note on Monday, March 9th. Finally, Wall Street Zen downgraded American Electric Power from a "hold" rating to a "sell" rating in a research note on Saturday. Fourteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, American Electric Power presently has an average rating of "Moderate Buy" and an average price target of $137.45.

American Electric Power Stock Performance

Shares of AEP opened at $133.28 on Tuesday. American Electric Power has a 1 year low of $97.46 and a 1 year high of $137.74. The company has a market cap of $72.45 billion, a price-to-earnings ratio of 19.89, a price-to-earnings-growth ratio of 3.14 and a beta of 0.58. The company has a debt-to-equity ratio of 1.37, a quick ratio of 0.33 and a current ratio of 0.45. The firm has a fifty day moving average of $131.35 and a 200-day moving average of $122.84.

American Electric Power (NASDAQ:AEP - Get Free Report) last announced its earnings results on Thursday, February 12th. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.15 by $0.04. The firm had revenue of $5.32 billion for the quarter, compared to the consensus estimate of $5.07 billion. American Electric Power had a return on equity of 10.46% and a net margin of 16.37%.The firm's revenue for the quarter was up 13.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.24 EPS. American Electric Power has set its FY 2026 guidance at 6.150-6.450 EPS. As a group, equities analysts anticipate that American Electric Power will post 6.33 earnings per share for the current year.

Insiders Place Their Bets

In other news, EVP Phillip R. Ulrich sold 4,106 shares of the business's stock in a transaction 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 sale, the executive vice president owned 42,263 shares of the company's stock, valued at approximately $5,582,097.04. The trade was a 8.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Kelly J. Ferneau sold 1,351 shares of the business's stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $131.46, for a total value of $177,602.46. Following the completion of the sale, the executive vice president directly owned 15,410 shares in the company, valued at $2,025,798.60. This represents a 8.06% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On American Electric Power

A number of hedge funds have recently modified their holdings of the stock. Louisiana State Employees Retirement System acquired a new position in shares of American Electric Power in the 1st quarter worth $8,271,000. First American Bank grew its holdings in shares of American Electric Power by 5.8% in the 1st quarter. First American Bank now owns 93,363 shares of the company's stock worth $12,238,000 after acquiring an additional 5,099 shares during the last quarter. Silver Oak Securities Incorporated grew its holdings in shares of American Electric Power by 3.3% in the 1st quarter. Silver Oak Securities Incorporated now owns 7,141 shares of the company's stock worth $936,000 after acquiring an additional 230 shares during the last quarter. Kestra Private Wealth Services LLC grew its holdings in shares of American Electric Power by 11.3% in the 1st quarter. Kestra Private Wealth Services LLC now owns 56,246 shares of the company's stock worth $7,373,000 after acquiring an additional 5,710 shares during the last quarter. Finally, Financial Enhancement Group LLC grew its holdings in shares of American Electric Power by 3.3% in the 1st quarter. Financial Enhancement Group LLC now owns 2,383 shares of the company's stock worth $319,000 after acquiring an additional 76 shares during the last quarter. 75.24% of the stock is currently owned by institutional investors and hedge funds.

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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