Investors Buy Shares of American Electric Power (AEP) on Weakness

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Traders purchased shares of American Electric Power Company Inc (NYSE:AEP) on weakness during trading on Wednesday. $73.38 million flowed into the stock on the tick-up and $29.26 million flowed out of the stock on the tick-down, for a money net flow of $44.12 million into the stock. Of all stocks tracked, American Electric Power had the 26th highest net in-flow for the day. American Electric Power traded down ($0.90) for the day and closed at $83.73

A number of brokerages have weighed in on AEP. Zacks Investment Research raised American Electric Power from a “hold” rating to a “buy” rating and set a $94.00 target price for the company in a research note on Monday, March 18th. Wolfe Research set a $89.00 target price on American Electric Power and gave the stock a “buy” rating in a research note on Friday, April 26th. Morgan Stanley downgraded American Electric Power from an “overweight” rating to an “equal weight” rating and cut their target price for the stock from $86.00 to $83.20 in a research note on Thursday, April 18th. Goldman Sachs Group downgraded American Electric Power from a “buy” rating to a “neutral” rating and set a $78.00 target price for the company. in a research note on Monday, April 8th. Finally, Wells Fargo & Co raised their target price on American Electric Power from $89.00 to $93.00 and gave the stock an “outperform” rating in a research note on Friday, April 26th. Eight analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus target price of $80.48.

The company has a market capitalization of $41.74 billion, a PE ratio of 21.20, a price-to-earnings-growth ratio of 3.66 and a beta of 0.17. The company has a quick ratio of 0.37, a current ratio of 0.49 and a debt-to-equity ratio of 1.19.

American Electric Power (NYSE:AEP) last issued its earnings results on Thursday, April 25th. The utilities provider reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.10 by $0.09. The business had revenue of $4.10 billion during the quarter, compared to the consensus estimate of $4.23 billion. American Electric Power had a return on equity of 10.81% and a net margin of 12.64%. The company’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same period last year, the company earned $0.96 EPS. Research analysts predict that American Electric Power Company Inc will post 4.13 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 10th. Investors of record on Friday, May 10th will be given a dividend of $0.67 per share. This represents a $2.68 dividend on an annualized basis and a dividend yield of 3.20%. The ex-dividend date of this dividend is Thursday, May 9th. American Electric Power’s payout ratio is 67.85%.

In related news, CEO Nicholas K. Akins sold 11,152 shares of the firm’s stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $84.94, for a total transaction of $947,250.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.16% of the stock is currently owned by company insiders.

Several large investors have recently modified their holdings of AEP. Martingale Asset Management L P grew its position in American Electric Power by 10.5% in the 1st quarter. Martingale Asset Management L P now owns 462,758 shares of the utilities provider’s stock valued at $38,757,000 after acquiring an additional 43,799 shares in the last quarter. Rational Advisors LLC grew its position in American Electric Power by 332.5% in the 1st quarter. Rational Advisors LLC now owns 666 shares of the utilities provider’s stock valued at $56,000 after acquiring an additional 512 shares in the last quarter. Piedmont Investment Advisors Inc. grew its position in American Electric Power by 8.7% in the 1st quarter. Piedmont Investment Advisors Inc. now owns 7,971 shares of the utilities provider’s stock valued at $668,000 after acquiring an additional 637 shares in the last quarter. Barings LLC grew its position in American Electric Power by 264.3% in the 1st quarter. Barings LLC now owns 14,611 shares of the utilities provider’s stock valued at $1,224,000 after acquiring an additional 10,600 shares in the last quarter. Finally, Becker Capital Management Inc. acquired a new position in American Electric Power in the 1st quarter valued at about $201,000. 73.53% of the stock is owned by hedge funds and other institutional investors.

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American Electric Power Company Profile (NYSE:AEP)

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. The company generates electricity using coal and lignite, natural gas, nuclear, hydroelectric, solar, wind, and other energy sources.

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