What Are The Risk Factors For American Electric Power Company Inc. (AEP)?

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As of Wednesday close, American Electric Power Company Inc.’s (NASDAQ:AEP) stock was up $1.42, moving up 1.52 percent to $95.13. The average number of shares traded per day over the past five days has been 3,333,800 shares. 5 times new highs have been achieved over the past 5 days, with a $5.39 gain in that time frame. In the last twenty days, the average volume was 3,453,965, while in the previous 50 days, it was 3,390,118.

Since last month, AEP stock rose 8.82%. Shares of the company fell to $85.25 on 10/24/22, the lowest level in the past month. A 52-week high of $105.60 was reached on 09/12/22 after having rallying from a 52-week low of $80.22. Since the beginning of this year, AEP’s stock price has risen by 6.92% or $6.16, and marked a new high 22 times. However, the stock has declined by -9.91% since its 52-week high.


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AEP stock investors should be aware that American Electric Power Company Inc. (AEP) stock had its last reported insider trading activity 50 days ago on Oct 06. Hall Greg B, the Executive Vice President of the company, disposed of 129 shares for $87.48 on Oct 06. It resulted in a $11,285 divestment by the insider. Risch Therace sold 5,330 shares at an average price of $102.35 on Jun 06. The insider now owns 8,248 shares following the transaction. On May 20, Executive Vice President Zebula Charles E sold 1,902 shares at $99.05 apiece. The transaction was valued at $188,393.

Valuation Metrics

Right now, American Electric Power Company Inc. (AEP) has a P/E ratio of about 19.73. The stock’s beta is 0.40. Besides these, the trailing price-to-sales (P/S) ratio of 2.53, the price-to-book (PB) ratio of 2.01, and the price-to-cash flow ratio of 12.37 may also be considered.

The latest dividend of $0.83 per share was paid out, which is 6.41% more than last year’s $0.78. On Tuesday October 25 2022, a $0.05 dividend increase was announced.

Financial Health

In the three months ended September 29, American Electric Power Company Inc.’s quick ratio stood at 0.70, while its current ratio was 0.80, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 1.38, and the total debt-to-equity ratio was 1.55. On the profitability front, the trailing twelve-month gross margin is 65.40% percent. In the year ended September 29, operating margins totaled 19.20%. Based on annual data, AEP earned $3.41 billion in gross profit and brought in $16.79 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 5.60%. Return on equity (ROE) for the past 12 months was 10.40%.

In American Electric Power Company Inc.’s quarter-end financial report for September 29, it reported total debt of $33.65 billion against cash and short-term investments of $202.2 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. AEP’s revenue rose 16.34% to $4.64 billion during the quarter, while net income inched up to $5.53 billion. While analysts expected American Electric Power Company Inc. to report $1.56 quarterly earnings, the actual figure was $1.62 per share, beating the consensus estimate by 3.80%. During the quarter, the company generated $1.75 billion in EBITDA. The liabilities of American Electric Power Company Inc. were 66.74 billion at the end of its most recent quarter ended September 29, and its total debt was $38.23 billion. The value of shareholders’ equity is $513.86 million.

Technical Picture

This quick technical analysis looks at American Electric Power Company Inc.’s (AEP) price momentum. With a historical volatility rate of 32.08%, the RSI 9-day stood at 71.46% on 23 November.

With respect to its five-day moving average, the current American Electric Power Company Inc. price is up by +6.01% percent or $5.39. At present, AEP shares trade +8.78% above its 20-day simple moving average and +1.66% percent above its 100-day simple moving average. However, the stock is currently trading approximately -7.93% below its SMA50 and +5.47% above its SMA200.

Stochastic coefficient K was 94.67% and Stochastic coefficient D was 87.21%, while ATR was 2.11. Given the Stochastic reading of 99.06% for the 14-day period, the RSI (14) reading has been calculated as 64.13%. As of today, the MACD Oscillator reading stands at 2.89, while the 14-day reading stands at 3.54.

Analyst Ratings

Credit Suisse launched its rating on American Electric Power Company Inc. (NASDAQ: AEP) to an Outperform in a note to investors on April 26, 2022. American Electric Power Company Inc. (AEP) has been rated Overweight by analysts. According to 1 brokerage firm, AEP is a sell, and 6 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate American Electric Power Company Inc. stock as buy, with 12 recommending it as overweight.

With a median target price of $99.50, the current consensus forecast for the stock is $80.00 – $109.00. Based on these forecasts, analysts predict American Electric Power Company Inc. (AEP) will achieve an average price target of $98.07.

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