American Equity Investment Life Holding Company (NYSE: AEL) stock jumped 0.20% on Thursday to $39.81 against a previous-day closing price of $39.73. With 0.54 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.64 million shares. During the session, the Insurance – Life company that operates in wider Financial sector, reached to the highest price of $40.17 whereas the lowest price it dropped to was $39.51. The 52-week range on AEL shows that it touched its highest point at $48.37 and its lowest point at $28.05 during that stretch. It currently has a 1-year price target of $44.56. With its current market cap of 3.13 billion, AEL has annualized dividend of $0.36 while the current yield stands at 0.90%. Beta for the stock currently stands at 0.86.
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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 AEL was up-trending over the past week, with a rise of 1.74%, but this was up by 7.13% over a month. Three-month performance dropped to -4.12% while six-month performance rose 0.71%. The stock gained 2.68% in the past year, while it has lost -12.74% so far this year. A look at the trailing 12-month EPS for AEL yields 4.80 with Next year EPS estimates of 6.58. For the next quarter, that number is 1.56. This implies an EPS growth rate of 182.40% for this year and 5.43% for next year. EPS is expected to grow by 26.81% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 40.70%.
Float and Shares Shorts:
At present, 83.42 million AEL shares are outstanding with a float of 76.92 million shares on hand for trading. On May 14, 2023, short shares totaled 3.86 million, which was 4.95% higher than short shares on Apr 13, 2023. In addition to Mr. Anant Bhalla as the firm’s Pres, CEO & Director, Mr. Axel Philippe Alain Andre serves as its Exec. VP & CFO.
Through their ownership of 99.57% of AEL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.47% of AEL, in contrast to 40.82% held by mutual funds. Shares owned by individuals account for 28.91%. As the largest shareholder in AEL with 18.74% of the stake, Brookfield Asset Management PIC C holds 15,886,163 shares worth 15,886,163. A second-largest stockholder of AEL, BlackRock Fund Advisors, holds 10,495,128 shares, controlling over 12.38% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in AEL, holding 9,387,402 shares or 11.07% stake. With a 5.97% stake in AEL, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 5,056,757 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.95% of AEL stock, is the second-largest Mutual Fund holder. It holds 2,501,170 shares valued at 96.4 million. DFA US Small Cap Value Portfolio holds 2.68% of the stake in AEL, owning 2,270,315 shares worth 87.5 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AEL since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With AEL analysts setting a high price target of $50.00 and a low target of $40.00, the average target price over the next 12 months is $44.18. Based on these targets, AEL could surge 25.6% to reach the target high and rise by 0.48% to reach the target low. Reaching the average price target will result in a growth of 10.98% 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.
Summary of Insider Activity:
Insiders traded AEL stock several times over the past three months with 5 Buys and 5 Sells. In these transactions, 133,066 shares were bought while 67,207 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 1,424,871 while 4,117,463 shares were sold.