The stock of American Electric Power Company Inc. (NASDAQ:AEP) decreased by -$0.9 on Tuesday to finish at $79.10, down -1.13 percent. The last five days have seen an average of 3,233,620 shares of common stock traded. 4 times new highs were reached in the current year, with a fall of -$15.85. The average number of shares traded over the last 20 days was 3,610,315, while the average volume over the last 50 days totaled 3,377,076.
AEP stock dropped -7.46% since last month. On 08/15/23, the company’s shares reached a one-month low of $78.87. The stock touched a high of $105.60 on 01/09/23, after rallying from a low of $79.70 in 52 weeks. The price of AEP stock has declined by -16.69% or -$15.85 this year, reaching a new high 4 times. Still, the stock price is down -25.09% from the 52-week high.
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Insider Transactions
AEP stock investors should be aware that American Electric Power Company Inc. (AEP) stock had its last reported insider trading activity 106 days ago on May 02. On May 02, Executive Chair Akins Nicholas K sold 10,491 shares at $92.75 each. This transaction resulted in the insider making $973,040. On May 02, Feinberg David Matthew sold 1,616 shares at a price of US$92.75. After the transaction, the insider now owns 8,925 shares. Executive Vice President Beam Christian T had earlier sold 513 shares on May 02 for $92.75 a share. The transaction was completed for $47,581.
Valuation Metrics
American Electric Power Company Inc. (AEP) has a trailing price-to-earnings (P/E) ratio of 20.54. Beta for the stock is 0.46. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.09, the price-to-book (PB) ratio of 1.70.
Company paid $0.83 per share in dividends, remained unchanged from $0.83 last year. A $0.05 dividend increase was reported on Tuesday October 25 2022.
Financial Health
For the three months ended June 29, American Electric Power Company Inc.’s quick ratio was 0.50, while its current ratio was 0.60, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 1.53, and the total debt to equity ratio is 1.84. As far as profitability goes, gross margin for the trailing twelve months is 63.20% percent. American Electric Power Company Inc.’s EBITDA margin for the year ended June 29 was 34.62%, whereas its operating margin stood at 15.80% for the same period. Based on annual data, it had gross profit of $3.48 billion and revenue of $19.64 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. AEP’s return on assets (ROA) during the last 12 months has been 2.10%. There was a 5.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 8.30%.
Earnings Surprise
According to American Electric Power Company Inc.’s quarterly financial report for the quarter that ended June 29, it had $36.76 billion in total debt versus $202.5 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.37 billion, while revenues fell by -6.11% to $4.69 billion. It was predicted that American Electric Power Company Inc.’s quarterly earnings would be $1.13, but it ended up being $1.12, beating the consensus by 0.90%. EBITDA was $1.62 billion for the quarter. At the end of American Electric Power Company Inc.’s most recent quarter ended June 29, its liabilities totaled 71.88 billion, while its total debt was $44.66 billion. Equity owned by shareholders amounts to $515.18 million.
Technical Picture
Here’s a quick look at American Electric Power Company Inc.’s (AEP) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 20.12%, suggesting the stock is oversold, with a 14.87% historical volatility rate.
The stochastic %K and %D were 7.10% and 10.74% respectively, while the average true range (ATR) was 1.43. Based on the 14-day stochastic reading of 2.62%, the RSI (14) reading is 27.78%. On the 9-day MACD Oscillator, the stock is at -0.70, and the 14-day reading is at -2.14.
Analyst Ratings
In its analyst report released on June 08, 2023, Goldman began covering American Electric Power Company Inc. (NASDAQ: AEP). The stock was rated as a Buy by the brokerage firm. Analysts have assigned American Electric Power Company Inc. (AEP) an Overweight rating. AEP is a stock that is recommended for selling by 0 brokerage firms, while 9 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 9 others recommend it as a buy.
What is AEP’s price target for the next 12 months?
The current consensus forecast for the stock is between $89.00 and $113.00, with a median target price of $97.12. In analyzing these forecasts, the average price target given by analysts for American Electric Power Company Inc. (AEP) is $98.59.
