American Electric Power Company, Inc. (NASDAQ:AEP) Stock Has Average Target Price of $138.91

Shares of American Electric Power Company, Inc. (NASDAQ:AEP) have been given an average rating of “Moderate Buy” by the twenty-four research firms that are presently covering the stock, Marketbeat.com reports. Eight investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company. The average 1-year target price among brokers that have updated their coverage on the stock in the last year is $138.70.

Several research analysts have weighed in on the stock. Morgan Stanley increased their target price on shares of American Electric Power from $128.00 to $130.00 and gave the stock an “overweight” rating in a research note on Wednesday. Jefferies Financial Group decreased their price objective on shares of American Electric Power from $148.00 to $145.00 and set a “buy” rating on the stock in a report on Thursday. BTIG Research raised shares of American Electric Power from a “neutral” rating to a “buy” rating and set a $147.00 price objective for the company in a research report on Tuesday. Barclays cut their target price on American Electric Power from $129.00 to $120.00 and set an “equal weight” rating on the stock in a research report on Monday, October 12th. Finally, JPMorgan Chase & Co. cut their price objective on American Electric Power from $140.00 to $135.00 and set a “neutral” rating on the stock in a report on Monday, October 19th.

American Electric Power News Summary

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

• Positive Sentiment: HSBC initiated coverage with a Buy rating and a $145.90 price target, implying meaningful upside from recent levels. Jefferies also maintains a target well above the stock, although it reduced its target to $146 from $148. HSBC coverage article Jefferies price target article
• Positive Sentiment: AI-related electricity demand is strengthening AEP’s growth outlook. The company has contracted large-load capacity additions of 69 gigawatts through 2030, with approximately 90% tied to data centers and cryptocurrency customers. AEP expects operating EPS to grow at more than 9% annually through 2030. AEP dividend and data-center demand article
• Positive Sentiment: AEP raised its quarterly dividend by 2% to $0.97 per share, bringing the forward yield to roughly 3%. Its approximately 65% trailing payout ratio is expected to decline toward 55%, suggesting improved dividend coverage as earnings grow.
• Positive Sentiment: AEP recently moved above its 200-day moving average, a technical signal that some investors interpret as evidence of improving long-term momentum. AEP moving average article
• Neutral Sentiment: Wall Street is focused on AEP’s third-quarter results and key operating metrics. The earnings preview could increase volatility as investors assess whether demand growth is translating into revenue and earnings performance. AEP earnings preview
• Negative Sentiment: Analysts are questioning whether AEP’s aggressive investment required to serve data centers could pressure cash flow and dividend safety. The company’s debt-to-equity ratio is already elevated, making financing and execution risks important issues for income-focused shareholders. AEP dividend risk comparison

American Electric Power Trading Down 0.7%

NASDAQ:AEP traded down $0.95 on Friday, hitting $129.69. The stock had a trading volume of 2,836,609 shares, compared to its average volume of 3,347,639. The company has a fifty day moving average price of $122.99 and a two-hundred day moving average price of $128.48. The stock has a market cap of $70.60 billion, a price-to-earnings ratio of 22.25, a PEG ratio of 2.70 and a beta of 0.48. The company has a quick ratio of 0.38, a current ratio of 0.50 and a debt-to-equity ratio of 1.44. American Electric Power has a 1-year low of $112.54 and a 1-year high of $140.58.

American Electric Power (NASDAQ:AEP) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing the consensus estimate of $1.48 by ($0.12). American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The business had revenue of $5.45 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same period last year, the company earned $1.43 EPS. The business’s revenue for the quarter was up 7.0% on a year-over-year basis. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Equities research analysts expect that American Electric Power will post 6.40 earnings per share for the current fiscal year.

American Electric Power Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Tuesday, November 10th will be issued a dividend of $0.97 per share. This is a positive change from American Electric Power’s previous quarterly dividend of $0.95. The ex-dividend date is Tuesday, November 10th. This represents a $3.88 dividend on an annualized basis and a yield of 3.0%. American Electric Power’s dividend payout ratio (DPR) is 65.18%.

Insider Buying and Selling

In other American Electric Power news, CAO Kate Dixon sold 2,000 shares of the business’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $125.00, for a total transaction of $250,000.00. Following the sale, the chief accounting officer directly owned 15,856 shares in the company, valued at $1,982,000. This represents a 11.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.05% of the stock is owned by company insiders.

Hedge Funds Weigh In On American Electric Power

Several institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in shares of American Electric Power during the 2nd quarter worth approximately $6,980,601,000. Wellington Management Group LLP raised its holdings in shares of American Electric Power by 5.4% in the second quarter. Wellington Management Group LLP now owns 13,872,005 shares of the company’s stock worth $1,897,829,000 after acquiring an additional 715,613 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of American Electric Power in the second quarter worth $1,678,638,000. GQG Partners LLC acquired a new position in shares of American Electric Power in the second quarter worth $1,404,094,000. Finally, Legal & General Group Plc purchased a new stake in shares of American Electric Power in the second quarter valued at $680,638,000. Institutional investors and hedge funds own 75.24% of the company’s stock.

American Electric Power Company Profile

American Electric Power (NASDAQ:AEP) is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and institutional customers. Through its operating companies, AEP provides regulated electric service and manages power generation assets using a mix of energy resources, including natural gas, coal, nuclear, hydroelectric and renewable energy.

AEP operates one of the largest electric transmission systems in the United States and supplies electricity across portions of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.