American Equity Investment Life (NYSE:AEL) Upgraded by Zacks Investment Research to “Hold”

Zacks Investment Research upgraded shares of American Equity Investment Life (NYSE:AELGet Rating) from a sell rating to a hold rating in a research report released on Tuesday morning, Zacks.com reports. Zacks Investment Research currently has $37.00 target price on the financial services provider’s stock.

According to Zacks, “American Equity's shares have outperformed the industry in a year. The company's fixed index and fixed rate annuity products guarantying principal protection, competitive rates of credited interest, tax-deferred growth, guaranteed lifetime income and alternative payout options poise it well to benefit, given its targeted demography. This premier fixed index annuity producer remains focused on expanding into middle market credit, real estate, infrastructure debt and agricultural loans. The company’s balance sheet has been strengthened by a rising cash balance. American Equity remains committed to reward shareholders through share repurchases and dividends. However, a sustained low-rate environment has been weighing on its earned yield. Escalating expenses induce margin contraction concerns. Poor return on assets pose financial risk.”

AEL has been the subject of several other research reports. Royal Bank of Canada raised their price objective on shares of American Equity Investment Life from $41.00 to $47.00 and gave the company an outperform rating in a research report on Wednesday, January 12th. Jefferies Financial Group started coverage on shares of American Equity Investment Life in a research report on Tuesday, January 25th. They set a hold rating and a $42.00 price target for the company. StockNews.com started coverage on shares of American Equity Investment Life in a research report on Thursday, March 31st. They set a hold rating for the company. Morgan Stanley lifted their price target on shares of American Equity Investment Life from $40.00 to $41.00 and gave the stock an equal weight rating in a research report on Tuesday, February 22nd. Finally, Raymond James lifted their price target on shares of American Equity Investment Life from $40.00 to $44.00 and gave the stock an outperform rating in a research report on Monday, January 10th. Four investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of Buy and a consensus target price of $42.18.

AEL opened at $34.02 on Tuesday. The company has a current ratio of 0.17, a quick ratio of 0.20 and a debt-to-equity ratio of 0.11. The stock has a market capitalization of $3.17 billion, a PE ratio of 4.60 and a beta of 1.10. American Equity Investment Life has a 1-year low of $27.12 and a 1-year high of $44.49. The firm has a 50-day moving average price of $38.44 and a two-hundred day moving average price of $38.31.

American Equity Investment Life (NYSE:AELGet Rating) last posted its quarterly earnings data on Wednesday, May 4th. The financial services provider reported $0.92 earnings per share for the quarter, meeting the consensus estimate of $0.92. The firm had revenue of $147.80 million during the quarter, compared to analysts’ expectations of $612.85 million. American Equity Investment Life had a net margin of 26.35% and a return on equity of 7.26%. The company’s quarterly revenue was down 84.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.43 EPS. On average, research analysts predict that American Equity Investment Life will post 4.07 EPS for the current year.

In related news, Director Joyce Ann Chapman sold 3,856 shares of American Equity Investment Life stock in a transaction that occurred on Wednesday, March 9th. The shares were sold at an average price of $38.26, for a total transaction of $147,530.56. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Ronald James Grensteiner sold 15,963 shares of American Equity Investment Life stock in a transaction that occurred on Monday, March 14th. The shares were sold at an average price of $38.37, for a total transaction of $612,500.31. The disclosure for this sale can be found here. Insiders have sold a total of 29,007 shares of company stock worth $1,112,023 in the last three months. 1.90% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the company. River Road Asset Management LLC increased its holdings in American Equity Investment Life by 43.7% during the third quarter. River Road Asset Management LLC now owns 5,321,184 shares of the financial services provider’s stock worth $157,347,000 after buying an additional 1,617,859 shares during the last quarter. Norges Bank acquired a new position in American Equity Investment Life during the fourth quarter worth $34,065,000. West Bancorporation Inc. acquired a new position in American Equity Investment Life during the fourth quarter worth $22,212,000. Point72 Asset Management L.P. increased its holdings in American Equity Investment Life by 1,183.3% during the fourth quarter. Point72 Asset Management L.P. now owns 598,010 shares of the financial services provider’s stock worth $23,275,000 after buying an additional 551,410 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC acquired a new position in American Equity Investment Life during the fourth quarter worth $12,708,000. Institutional investors own 95.15% of the company’s stock.

About American Equity Investment Life (Get Rating)

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the United States. The company issues fixed index and rate annuities, as well as single premium immediate annuities. It markets its products through independent agents, including independent marketing organizations, broker/dealers, banks, and registered investment advisors.

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Analyst Recommendations for American Equity Investment Life (NYSE:AEL)

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