American Electric Power Company Inc. (NASDAQ: AEP) stock fell -0.14% on Friday to $101.20 against a previous-day closing price of $101.34. With 2.18 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.71 million shares. During the session, the Utilities – Regulated Electric company that operates in wider Utilities sector, reached to the highest price of $102.48 whereas the lowest price it dropped to was $100.74. The 52-week range on AEP shows that it touched its highest point at $104.81 and its lowest point at $80.22 during that stretch. It currently has a 1-year price target of $105.79. With its current market cap of 52.25 billion, AEP has annualized dividend of $3.12 while the current yield stands at 3.08%. Beta for the stock currently stands at 0.35.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AEP was up-trending over the past week, with a rise of 1.25%, but this was up by 7.77% over a month. Three-month performance surged to 1.42% while six-month performance rose 13.22%. The stock gained 13.49% in the past year, while it has gained 13.75% so far this year. A look at the trailing 12-month EPS for AEP yields 5.08 with Next year EPS estimates of 5.28. For the next quarter, that number is 1.55. This implies an EPS growth rate of 14.60% for this year and 5.62% for next year. EPS is expected to grow by 6.35% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 31.80%.
Float and Shares Shorts:
At present, 513.60 million AEP shares are outstanding with a float of 513.59 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.87 million, which was 1.73% higher than short shares on Jun 14, 2022. In addition to Mr. Nicholas K. Akins as the firm’s Chairman, Pres & CEO, Ms. Julia A. Sloat serves as its Exec. VP & CFO.
Through their ownership of 74.83% of AEP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.34% of AEP, in contrast to 30.10% held by mutual funds. Shares owned by individuals account for 0.20%. As the largest shareholder in AEP with 8.41% of the stake, The Vanguard Group, Inc. holds 43,182,746 shares worth 43,182,746. A second-largest stockholder of AEP, SSgA Funds Management, Inc., holds 27,777,603 shares, controlling over 5.41% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in AEP, holding 27,582,145 shares or 5.37% stake. With a 2.95% stake in AEP, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 15,128,607 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.21% of AEP stock, is the second-largest Mutual Fund holder. It holds 11,365,793 shares valued at 1.09 billion. SPDR Series – Utilities Select Se holds 1.61% of the stake in AEP, owning 8,264,864 shares worth 792.93 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AEP since 18 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AEP analysts setting a high price target of $118.00 and a low target of $80.00, the average target price over the next 12 months is $106.14. Based on these targets, AEP could surge 16.6% to reach the target high and fall by -20.95% to reach the target low. Reaching the average price target will result in a growth of 4.88% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AEP will report FY 2022 earnings on 01/26/2023. Analysts have provided yearly estimates in a range of $5.23 being high and $4.84 being low. For AEP, this leads to a yearly average estimate of $5.00. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. American Electric Power Company Inc. surprised analysts by $0.01 when it reported $1.20 EPS against a consensus estimate of $1.19. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $1.65 and the low estimate is $1.49. The average estimate for the next quarter is thus $1.55.
Dividends & Yield:
In terms of dividends, AEP has a current ratio of $3.12, which is $3.12 over the trailing 12-months, while a dividend of $2.71 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and AEP currently yields $3.08. In the past year, AEP’s dividend yield has been $3.08, but when looking at the stock over the past five years, its yield has been $3.28. Accordingly, AEP has a current buyback yield of $0.0. This was $0.0 for the TTM.
Summary of Insider Activity:
Insiders traded AEP stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 7,232 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 72 over the past year. The total number of shares bought during that period was 262,619 while 204,805 shares were sold.