American Electric Power (NASDAQ:AEP) Upgraded to Hold at Wall Street Zen

Wall Street Zen upgraded shares of American Electric Power (NASDAQ:AEP) from a sell rating to a hold rating in a research report sent to investors on Saturday,Wall Street Zen reports.

A number of other research analysts have also recently weighed in on the company. Citigroup reduced their target price on American Electric Power from $148.00 to $142.00 and set a “neutral” rating on the stock in a report on Wednesday, August 5th. BMO Capital Markets dropped their price target on American Electric Power from $139.00 to $135.00 and set a “market perform” rating for the company in a research note on Monday, October 19th. HSBC began coverage on American Electric Power in a report on Thursday. They issued a “buy” rating and a $145.90 price objective on the stock. Morgan Stanley lifted their price objective on American Electric Power from $128.00 to $130.00 and gave the company an “overweight” rating in a research note on Wednesday. Finally, KeyCorp upgraded American Electric Power from a “sector weight” rating to an “overweight” rating and set a $133.00 target price for the company in a report on Monday, October 12th. Sixteen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $138.70.

American Electric Power Stock Performance

Shares of AEP stock opened at $129.69 on Friday. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.38 and a current ratio of 0.50. The firm has a market capitalization of $70.60 billion, a price-to-earnings ratio of 22.25, a price-to-earnings-growth ratio of 2.68 and a beta of 0.48. American Electric Power has a one year low of $112.54 and a one year high of $140.58. The company has a 50 day moving average price of $122.99 and a 200 day moving average price of $128.48.

American Electric Power (NASDAQ:AEP) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share for the quarter, missing analysts’ consensus estimates 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 company had revenue of $5.45 billion during the quarter, compared to analyst estimates of $5.34 billion. During the same quarter last year, the business earned $1.43 EPS. The firm’s revenue for the quarter was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Sell-side analysts anticipate that American Electric Power will post 6.40 EPS for the current year.

American Electric Power Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Tuesday, November 10th will be given a $0.97 dividend. This represents a $3.88 annualized dividend and a yield of 3.0%. This is a boost from American Electric Power’s previous quarterly dividend of $0.95. The ex-dividend date of this dividend is Tuesday, November 10th. American Electric Power’s dividend payout ratio 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 stock was sold at an average price of $125.00, for a total transaction of $250,000.00. Following the transaction, the chief accounting officer owned 15,856 shares in the company, valued at $1,982,000. The trade was a 11.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.05% of the stock is owned by company insiders.

Institutional Investors Weigh In On American Electric Power

A number of large investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in American Electric Power during the 2nd quarter worth $6,980,601,000. Pictet Asset Management Holding SA lifted its holdings in American Electric Power by 43.7% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,688,208 shares of the company’s stock worth $221,290,000 after buying an additional 513,305 shares in the last quarter. Silvant Capital Management LLC purchased a new position in American Electric Power in the 2nd quarter valued at about $2,278,000. Kayne Anderson Capital Advisors LP acquired a new stake in shares of American Electric Power during the second quarter valued at about $8,448,000. Finally, Bellars Harris Wealth Management LLC acquired a new stake in shares of American Electric Power during the second quarter valued at about $10,377,000. Institutional investors and hedge funds own 75.24% of the company’s stock.

Key Headlines Impacting American Electric Power

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.