American Electric Power (NASDAQ:AEP) Sets New 52-Week High After Better-Than-Expected Earnings

American Electric Power Company, Inc. (NASDAQ:AEP)’s share price hit a new 52-week high on Thursday following a better than expected earnings announcement. The company traded as high as $126.78 and last traded at $126.7910, with a volume of 1125322 shares traded. The stock had previously closed at $122.25.

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 during the quarter, compared to the consensus estimate of $5.07 billion. American Electric Power had a return on equity of 11.00% and a net margin of 17.23%.The company’s revenue was up 13.2% on a year-over-year basis. During the same period last year, the company earned $1.24 earnings per share. American Electric Power has set its FY 2026 guidance at 6.150-6.450 EPS.

American Electric Power Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be given a dividend of $0.95 per share. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $3.80 annualized dividend and a dividend yield of 3.0%. American Electric Power’s dividend payout ratio (DPR) is 55.39%.

Key Headlines Impacting American Electric Power

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: AEP beat Q4 EPS and revenue estimates, reporting $1.19 operating EPS vs. $1.15 consensus and revenue up ~13% y/y; management reaffirmed long‑term 7%–9% operating earnings growth and issued FY2026 guidance of $6.15–$6.45. AEP Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Management doubled AEP’s contracted incremental load outlook to 56 GW by 2030 (from 28 GW), driven largely by data‑center deals — a multiyear demand pipeline that supports higher regulated investment and rate base growth. AEP doubles contracted load outlook
• Positive Sentiment: AEP said it will expand its five‑year capital plan (>$72B) and identified $5B–$8B of incremental investment opportunities to meet surging electricity demand from hyperscale customers, indicating stronger future capex and regulated earnings growth. AEP expands spending plan, beats profit estimates
• Positive Sentiment: Market coverage noted the upbeat earnings and guidance helped AEP buck a broader market decline today, supporting near‑term share strength. S&P 500 Falls Over 1%; AEP Shares Gain After Upbeat Earnings
• Neutral Sentiment: Full earnings materials and the Q4 call transcript provide detail on drivers (weather, merchant volumes, timing of other items) that investors will parse for sustainability of results. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst pieces and value comparisons (e.g., vs. FirstEnergy) are evaluating relative valuation and yield — useful for positioning but not immediate catalysts. FE vs. AEP: Which Stock Is the Better Value Option?
• Neutral Sentiment: Data entries show reported short‑interest changes with zero shares/NaN (likely a reporting anomaly) — not a reliable signal for current positioning. (internal data)
• Negative Sentiment: The FERC rejected AEP’s request to sell capacity in an upcoming auction, which could limit near‑term monetization of some capacity or alter planning assumptions; investors may watch for follow‑on regulatory implications. FERC rejects AEP request to sell capacity

Analyst Upgrades and Downgrades

AEP has been the subject of a number of research analyst reports. Siebert Williams Shank initiated coverage on American Electric Power in a report on Thursday, December 18th. They issued a “buy” rating and a $137.00 target price for the company. The Goldman Sachs Group lifted their price objective on American Electric Power from $128.00 to $133.00 in a report on Thursday, October 30th. Wells Fargo & Company raised their price target on shares of American Electric Power from $139.00 to $140.00 and gave the company an “overweight” rating in a report on Tuesday, January 20th. Citigroup boosted their price objective on shares of American Electric Power from $111.00 to $132.00 and gave the company a “neutral” rating in a report on Friday, October 31st. Finally, Jefferies Financial Group upgraded shares of American Electric Power from a “hold” rating to a “buy” rating and increased their price objective for the company from $128.00 to $137.00 in a research report on Monday, November 17th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $127.39.

Insider Transactions at American Electric Power

In other American Electric Power news, Director Benjamin G. S. Fowke III sold 5,000 shares of the firm’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $115.07, for a total transaction of $575,350.00. Following the sale, the director directly owned 25,898 shares of the company’s stock, valued at $2,980,082.86. This trade represents a 16.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.07% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in AEP. Advisors Asset Management Inc. increased its holdings in shares of American Electric Power by 16.0% in the fourth quarter. Advisors Asset Management Inc. now owns 25,935 shares of the company’s stock worth $2,991,000 after purchasing an additional 3,568 shares during the last quarter. CI Investments Inc. boosted its stake in American Electric Power by 29.7% during the fourth quarter. CI Investments Inc. now owns 11,753 shares of the company’s stock valued at $1,355,000 after buying an additional 2,690 shares during the last quarter. Laurel Oak Wealth Management LLC purchased a new position in American Electric Power during the 4th quarter valued at approximately $430,000. FineMark National Bank & Trust increased its stake in American Electric Power by 4.3% in the 4th quarter. FineMark National Bank & Trust now owns 11,118 shares of the company’s stock worth $1,282,000 after acquiring an additional 462 shares during the last quarter. Finally, Fiduciary Group LLC increased its stake in American Electric Power by 22.2% in the 4th quarter. Fiduciary Group LLC now owns 2,749 shares of the company’s stock worth $317,000 after acquiring an additional 500 shares during the last quarter. Institutional investors own 75.24% of the company’s stock.

American Electric Power Stock Up 3.4%

The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.53 and a current ratio of 0.69. The firm has a market capitalization of $67.52 billion, a PE ratio of 18.43, a PEG ratio of 2.92 and a beta of 0.62. The company has a fifty day moving average price of $117.33 and a 200-day moving average price of $115.80.

American Electric Power Company Profile

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.