American Electric Power (AEP) – Research Analysts’ Recent Ratings Updates

Several analysts have recently updated their ratings and price targets for American Electric Power (NYSE: AEP):

  • 1/11/2019 – American Electric Power was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “American Electric, with focus on augmenting its earnings base has directed its capital expenditure toward regulated businesses. American Electric has a stable earnings base of approximately 5.4 million customers spread over 11 states. This provides stability to the company’s revenue stream and insulates it from lower sales in any particular service area. American Electric's shares also outperformed its industry in the past one year. However, American Electric projects an investment of $2.2-$2.8 billion in the 2017–2025 time period. This additional investment could weigh on the company’s finances, going ahead. American Electric is further exposed to environmental risks since its power plants produce large quantities of nitrogen, sulfur, mercury and carbon dioxide.”
  • 1/7/2019 – American Electric Power was downgraded by analysts at Guggenheim from a “buy” rating to a “neutral” rating. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 1/4/2019 – American Electric Power was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “American Electric projects an investment of $2.2-$2.8 billion in the 2017–2025 time period. This additional investment could weigh on the company’s finances, going ahead. American Electric is further exposed to environmental risks since its power plants produce large quantities of nitrogen, sulfur, mercury and carbon dioxide. American Electric's shares underperformed its industry in the past one months. Management currently estimates that the investment necessary to meet proposed environmental regulations through 2025 for its Welsh Plant, Units 1 and 3 could cost approximately $550 million. If the company fails to recover any of these costs, it could reduce future net income and cash flows. However. its newly announced investment strategy includes incremental investment in renewable generation projects throughout the United States. This may provide stability to the company’s revenue stream.”
  • 1/3/2019 – American Electric Power was downgraded by analysts at Mizuho from a “buy” rating to a “neutral” rating. They now have a $72.00 price target on the stock. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 12/11/2018 – American Electric Power was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “American Electric's shares outperformed its industry in the past six months. Its newly announced investment strategy includes incremental investment in renewable generation projects throughout the United States. This provides stability to the company’s revenue stream. American Electric has a stable customer base of approximately 5.4 million spread over 11 states. This provides cushion to the company from lower sales in any particular service area. American Electric also owns the nation's largest electricity transmission system and more than 224,000-miles of distribution lines. However, American Electric projects an investment of $2.2-$2.8 billion in the 2017–2025 time period. This additional investment could weigh on the company’s finances, going ahead. American Electric is further exposed to environmental risks since its power plants produce large quantities of nitrogen, sulfur, mercury and carbon dioxide.”
  • 11/29/2018 – American Electric Power was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “American Electric's shares outperformed its industry in the past six months. Its newly announced investment strategy includes incremental investment in renewable generation projects throughout the United States. This provides stability to the company’s revenue stream. American Electric has a stable customer base of approximately 5.4 million spread over 11 states. This provides cushion to the company from lower sales in any particular service area. American Electric also owns the nation's largest electricity transmission system and more than 224,000-miles of distribution lines. However, it is exposed to environmental risks, since its power plants produce large quantities of nitrogen, sulfur, mercury and carbon dioxide. American Electric also projects an investment of $2.2-$2.8 billion in the 2017–2025 time period. This additional investment could weigh on the company’s finances, going ahead.”
  • 11/28/2018 – American Electric Power was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $86.00 price target on the stock. According to Zacks, “American Electric's shares outperformed its industry in the past six months. Its newly announced investment strategy includes incremental investment in renewable generation projects throughout the United States. This provides stability to the company’s revenue stream. American Electric has a stable customer base of approximately 5.4 million spread over 11 states. This provides cushion to the company from lower sales in any particular service area. American Electric also owns the nation's largest electricity transmission system and more than 224,000-miles of distribution lines. American Electric boasts a strong liquidity position supported by its revolving credit facility, further enabling the company to finance its high-growth future. However, it is exposed to environmental risks, since its power plants produce large quantities of nitrogen, sulfur, mercury and carbon dioxide.”
  • 11/21/2018 – American Electric Power was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $87.00 price target on the stock. According to Zacks, “American Electric's shares outperformed its industry in the past six months. Its newly announced investment strategy includes incremental investment in renewable generation projects throughout the United States. This provides stability to the company’s revenue stream. American Electric has a stable customer base of approximately 5.4 million spread over 11 states. This provides cushion to the company from lower sales in any particular service area. American Electric also owns the nation's largest electricity transmission system and more than 224,000-miles of distribution lines. However, it is exposed to environmental risks, since its power plants produce large quantities of nitrogen, sulfur, mercury and carbon dioxide.”
  • 11/19/2018 – American Electric Power was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “American Electric's shares outperformed its industry in the past six months. Its newly announced investment strategy includes incremental investment in renewable generation projects throughout the United States. This provides stability to the company’s revenue stream. American Electric has a stable customer base of approximately 5.4 million spread over 11 states. This provides cushion to the company from lower sales in any particular service area. American Electric also owns the nation's largest electricity transmission system and more than 224,000-miles of distribution lines. However, it is exposed to environmental risks, since its power plants produce large quantities of nitrogen, sulfur, mercury and carbon dioxide. Also, in order to meet the environmental regulations, the company projects additional investments of $2.2-$2.8 billion in the 2017–2025 time period, which could weigh on the company’s finances, going ahead.”
  • 11/19/2018 – American Electric Power had its price target raised by analysts at Barclays PLC from $81.00 to $84.00. They now have a “buy” rating on the stock.

Shares of American Electric Power stock opened at $74.44 on Monday. American Electric Power Company Inc has a 1 year low of $62.71 and a 1 year high of $81.05. The firm has a market cap of $36.18 billion, a PE ratio of 20.23, a price-to-earnings-growth ratio of 3.11 and a beta of 0.10. The company has a quick ratio of 0.46, a current ratio of 0.56 and a debt-to-equity ratio of 1.10.

American Electric Power (NYSE:AEP) last announced its earnings results on Thursday, October 25th. The utilities provider reported $1.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.21 by $0.05. American Electric Power had a return on equity of 10.78% and a net margin of 12.14%. The firm had revenue of $4.30 billion during the quarter, compared to analyst estimates of $4.26 billion. During the same period last year, the firm posted $1.10 EPS. Equities analysts expect that American Electric Power Company Inc will post 3.95 earnings per share for the current fiscal year.

In related news, insider Lisa M. Barton sold 881 shares of American Electric Power stock in a transaction dated Tuesday, November 20th. The stock was sold at an average price of $77.55, for a total value of $68,321.55. Following the completion of the sale, the insider now owns 581 shares of the company’s stock, valued at approximately $45,056.55. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Paul Chodak III sold 847 shares of American Electric Power stock in a transaction dated Wednesday, November 14th. The stock was sold at an average price of $76.47, for a total value of $64,770.09. The disclosure for this sale can be found here. Company insiders own 0.16% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Private Trust Co. NA boosted its stake in American Electric Power by 3.5% in the 4th quarter. Private Trust Co. NA now owns 5,868 shares of the utilities provider’s stock worth $438,000 after purchasing an additional 199 shares during the period. WealthPLAN Partners LLC boosted its stake in American Electric Power by 1.9% in the 3rd quarter. WealthPLAN Partners LLC now owns 12,150 shares of the utilities provider’s stock worth $945,000 after purchasing an additional 226 shares during the period. Moody National Bank Trust Division boosted its stake in American Electric Power by 0.4% in the 4th quarter. Moody National Bank Trust Division now owns 68,551 shares of the utilities provider’s stock worth $5,123,000 after purchasing an additional 241 shares during the period. Arlington Partners LLC bought a new position in American Electric Power in the 4th quarter worth about $30,000. Finally, Cullinan Associates Inc. boosted its stake in American Electric Power by 7.1% in the 4th quarter. Cullinan Associates Inc. now owns 7,500 shares of the utilities provider’s stock worth $561,000 after purchasing an additional 500 shares during the period. 72.66% of the stock is owned by institutional investors.

American Electric Power Company, Inc, an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. The company generates electricity using coal and lignite, natural gas, nuclear, hydroelectric, solar, wind, and other energy sources.

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