American Electric Power (NASDAQ:AEP) Research Coverage Started at HSBC

HSBC began coverage on shares of American Electric Power (NASDAQ:AEP) in a research report released on Thursday morning, MarketBeat.com reports. The firm issued a buy rating and a $145.90 price objective on the stock.

Several other brokerages have also recently issued reports on AEP. Scotiabank lowered their target price on shares of American Electric Power from $140.00 to $131.00 and set a “sector perform” rating for the company in a report on Wednesday, September 30th. JPMorgan Chase & Co. dropped their target price on shares of American Electric Power from $140.00 to $135.00 and set a “neutral” rating on the stock in a research report on Monday, October 19th. BMO Capital Markets cut their price target on shares of American Electric Power from $139.00 to $135.00 and set a “market perform” rating on the stock in a research note on Monday, October 19th. Barclays reduced their price target on shares of American Electric Power from $129.00 to $120.00 and set an “equal weight” rating for the company in a research report on Monday, October 12th. Finally, Truist Financial reduced their price target on shares of American Electric Power from $146.00 to $139.00 and set a “buy” rating for the company in a research report on Monday, August 17th. Sixteen research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $138.70.

American Electric Power Price Performance

AEP stock opened at $129.69 on Thursday. The business has a 50 day moving average price of $122.99 and a 200 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 2.68 and a beta of 0.48. American Electric Power has a fifty-two week low of $112.54 and a fifty-two week high of $140.58. 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 (NASDAQ:AEP) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). The business had revenue of $5.45 billion during the quarter, compared to analyst estimates of $5.34 billion. American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The business’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period last year, the company earned $1.43 earnings per share. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Equities research analysts anticipate 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 disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be paid a $0.97 dividend. This is an increase from American Electric Power’s previous quarterly dividend of $0.95. This represents a $3.88 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Tuesday, November 10th. American Electric Power’s dividend payout ratio (DPR) is presently 65.18%.

Insiders Place Their Bets

In other American Electric Power news, CAO Kate Dixon sold 2,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $125.00, for a total value of $250,000.00. Following the completion of the sale, the chief accounting officer owned 15,856 shares in the company, valued at approximately $1,982,000. The trade was a 11.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.05% of the company’s stock.

Hedge Funds Weigh In On American Electric Power

A number of institutional investors have recently modified their holdings of AEP. BlackRock Inc. acquired a new position in American Electric Power in the second quarter valued at $6,980,601,000. Bank of America Corp DE purchased a new stake in shares of American Electric Power in the second quarter valued at about $1,678,638,000. GQG Partners LLC purchased a new stake in shares of American Electric Power in the second quarter valued at about $1,404,094,000. Legal & General Group Plc acquired a new stake in shares of American Electric Power during the second quarter worth about $680,638,000. Finally, Bank of New York Mellon Corp acquired a new stake in shares of American Electric Power during the second quarter worth about $495,495,000. 75.24% of the stock is owned by institutional investors and hedge funds.

Key American Electric Power News

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 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.