Signal Advisors Wealth LLC has established a new position in shares of American Electric Power Company, Inc. (NASDAQ:AEP) during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm acquired 2,117 shares, valued at approximately $220,000. This investment underscores a growing interest among institutional investors in the electric utility sector.
A number of other institutional investors have also recently adjusted their stakes in American Electric Power. Notably, EQ Wealth Advisors LLC purchased a new position worth $25,000 in the first quarter. Similarly, Bank of New Hampshire, Bayforest Capital Ltd, MJT & Associates Financial Advisory Group Inc., and Fourth Dimension Wealth LLC made new investments in the company, with respective values of $28,000, $31,000, $33,000, and $28,000. Overall, institutional investors hold approximately 75.24% of the company’s shares.
Market Reactions and Analyst Insights
Several research firms have recently provided updates on American Electric Power’s stock. Jefferies Financial Group lowered its price target from $120.00 to $116.00 while maintaining a “hold” rating. Conversely, Barclays raised its target from $105.00 to $111.00, assigning an “equal weight” rating. Morgan Stanley reiterated an “overweight” rating, indicating a positive outlook, while LADENBURG THALM/SH SH adjusted its price objective down from $112.00 to $108.50, maintaining a “neutral” stance. Scotiabank also increased its price target from $102.00 to $114.00.
The consensus among analysts reflects a balanced perspective on American Electric Power, with five analysts recommending a Buy rating, nine advising Hold, and one suggesting Sell. According to data from MarketBeat, the average target price for the stock stands at $111.50.
Company Performance and Financial Overview
On September 10, 2023, American Electric Power’s stock opened at $107.06. The company boasts a market capitalization of $57.25 billion, with a price-to-earnings ratio of 15.65 and a beta of 0.46. The firm has recorded a one-year low of $89.91 and a high of $115.36. Additionally, American Electric Power reported a quarterly earnings per share (EPS) of $1.43 for the quarter ending July 30, 2023, surpassing analysts’ expectations of $1.27 by $0.16. Revenue for the quarter reached $5.09 billion, exceeding estimates of $4.85 billion.
The company has projected its fiscal year 2025 EPS guidance between $6.570 and $6.770, while analysts expect an average EPS of $5.87 for the current fiscal year.
Dividend Announcement and Insider Activity
American Electric Power recently declared a quarterly dividend of $0.93 per share, which was paid on September 10, 2023. Shareholders of record as of August 8, 2023, received this dividend, reflecting an annualized rate of $3.72 and a yield of 3.5%. The company’s dividend payout ratio currently stands at 54.39%.
In related news, Director Benjamin G. S. Fowke III sold 5,000 shares of American Electric Power on September 12, 2023, for a total value of $543,250. Following this sale, Fowke retains 40,898 shares, valued at approximately $4.44 million. This transaction represents a 10.89% decrease in his position, as disclosed in an SEC filing.
American Electric Power Company, Inc. operates as an electric public utility holding company, engaging in the generation, transmission, and distribution of electricity for both retail and wholesale customers across the United States. The company functions through various segments, including Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing.
As the landscape of the electric utility sector evolves, American Electric Power remains a key player, attracting significant investments and analyst attention.