American Electric Power (NASDAQ:AEP) Stock Rating Upgraded by Wall Street Zen

American Electric Power (NASDAQ:AEP) was upgraded by stock analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research note issued on Saturday, Wall Street Zen reports.

Several other analysts also recently commented on AEP. Mizuho reduced their target price on shares of American Electric Power from $141.00 to $135.00 and set a “neutral” rating for the company in a report on Friday, July 31st. Jefferies Financial Group lowered their price target on shares of American Electric Power from $148.00 to $145.00 and set a “buy” rating on the stock in a report on Thursday. Truist Financial cut their price objective 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. Barclays decreased their target price on American Electric Power from $129.00 to $120.00 and set an “equal weight” rating on the stock in a research report on Monday, October 12th. Finally, Citigroup lowered their target price on American Electric Power from $148.00 to $142.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 5th. Sixteen analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $138.70.

American Electric Power Price Performance

NASDAQ:AEP opened at $129.69 on Friday. The company has a market cap of $70.60 billion, a P/E ratio of 22.25, a P/E/G ratio of 2.68 and a beta of 0.48. American Electric Power has a 52-week low of $112.54 and a 52-week high of $140.58. The stock’s 50-day simple moving average is $122.99 and its 200 day simple moving average is $128.45. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.38 and a current ratio of 0.50.

American Electric Power (NASDAQ:AEP) last issued its 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). American Electric Power had a net margin of 13.78% and a return on equity of 9.95%. The firm had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.34 billion. During the same period in the previous year, the company posted $1.43 earnings per share. 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. As a group, sell-side analysts forecast that American Electric Power will post 6.40 EPS for the current fiscal year.

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 dated Tuesday, September 8th. The shares were 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 of the company’s stock, valued at $1,982,000. The trade was a 11.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Apollon Wealth Management LLC increased its holdings in shares of American Electric Power by 9.7% during the third quarter. Apollon Wealth Management LLC now owns 33,145 shares of the company’s stock worth $3,932,000 after purchasing an additional 2,944 shares during the period. Hilton Head Capital Partners LLC boosted its stake in shares of American Electric Power by 3.9% in the third quarter. Hilton Head Capital Partners LLC now owns 2,121 shares of the company’s stock valued at $252,000 after buying an additional 80 shares during the period. Kingswood Wealth Advisors LLC boosted its stake in shares of American Electric Power by 14.2% in the third quarter. Kingswood Wealth Advisors LLC now owns 18,976 shares of the company’s stock valued at $2,251,000 after buying an additional 2,356 shares during the period. Sigma Planning Corp grew its position in American Electric Power by 9.8% during the third quarter. Sigma Planning Corp now owns 19,860 shares of the company’s stock worth $2,356,000 after buying an additional 1,780 shares in the last quarter. Finally, Paladin Wealth LLC increased its stake in American Electric Power by 88.5% during the 3rd quarter. Paladin Wealth LLC now owns 2,803 shares of the company’s stock worth $333,000 after acquiring an additional 1,316 shares during the period. Institutional investors and hedge funds own 75.24% of the company’s stock.

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

About American Electric Power

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.