American Electric Power (NASDAQ:AEP) Reaches New 12-Month High on Strong Earnings

American Electric Power Company, Inc. (NASDAQ:AEP)’s share price reached a new 52-week high during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $112.97 and last traded at $113.32, with a volume of 2176386 shares traded. The stock had previously closed at $109.22.

The company reported $1.43 earnings per share for the quarter, beating analysts’ consensus estimates of $1.27 by $0.16. American Electric Power had a return on equity of 11.68% and a net margin of 13.73%. The company had revenue of $5.09 billion for the quarter, compared to the consensus estimate of $4.85 billion. During the same quarter last year, the company earned $1.25 earnings per share. The firm’s revenue for the quarter was up 11.1% compared to the same quarter last year.

American Electric Power Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 8th will be given a dividend of $0.93 per share. This represents a $3.72 dividend on an annualized basis and a yield of 3.28%. The ex-dividend date is Friday, August 8th. American Electric Power’s payout ratio is currently 71.68%.

Analysts Set New Price Targets

AEP has been the topic of a number of recent research reports. BMO Capital Markets raised their price objective on American Electric Power from $111.00 to $115.00 and gave the company an “outperform” rating in a research report on Monday, April 21st. Raymond James Financial initiated coverage on American Electric Power in a research note on Friday, June 13th. They issued an “outperform” rating and a $115.00 price target for the company. Morgan Stanley decreased their price target on American Electric Power from $114.00 to $113.00 and set an “overweight” rating for the company in a research note on Thursday, May 22nd. Wells Fargo & Company increased their price target on American Electric Power from $107.00 to $114.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 7th. Finally, Guggenheim increased their price target on American Electric Power from $109.00 to $115.00 and gave the company a “buy” rating in a research note on Wednesday, May 7th. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have given a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $108.31.

Insider Activity

In other news, EVP David Matthew Feinberg sold 8,058 shares of the firm’s stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $101.74, for a total value of $819,820.92. Following the completion of the transaction, the executive vice president directly owned 10,274 shares in the company, valued at $1,045,276.76. This trade represents a 43.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Quinton S. Lies sold 10,141 shares of the firm’s stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $102.68, for a total value of $1,041,277.88. Following the completion of the transaction, the executive vice president owned 9,658 shares of the company’s stock, valued at approximately $991,683.44. The trade was a 51.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 34,314 shares of company stock valued at $3,508,293. Company insiders own 0.07% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of AEP. Kingswood Wealth Advisors LLC raised its position in American Electric Power by 14.8% during the first quarter. Kingswood Wealth Advisors LLC now owns 3,331 shares of the company’s stock valued at $364,000 after acquiring an additional 430 shares in the last quarter. Ritholtz Wealth Management purchased a new position in American Electric Power during the first quarter valued at approximately $262,000. Robertson Stephens Wealth Management LLC purchased a new position in American Electric Power during the first quarter valued at approximately $205,000. GAMMA Investing LLC raised its position in American Electric Power by 24.5% during the first quarter. GAMMA Investing LLC now owns 19,678 shares of the company’s stock valued at $2,150,000 after acquiring an additional 3,867 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC raised its position in American Electric Power by 26.1% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 355,516 shares of the company’s stock valued at $38,848,000 after acquiring an additional 73,488 shares in the last quarter. 75.24% of the stock is currently owned by hedge funds and other institutional investors.

American Electric Power Stock Performance

The company has a debt-to-equity ratio of 1.42, a current ratio of 0.42 and a quick ratio of 0.31. The firm has a fifty day simple moving average of $104.17 and a 200 day simple moving average of $103.69. The company has a market capitalization of $60.50 billion, a price-to-earnings ratio of 21.82, a price-to-earnings-growth ratio of 2.90 and a beta of 0.42.

American Electric Power Company Profile

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.