Stock analysts at Scotiabank have raised their earnings per share estimates for American Electric Power Company, Inc. (NASDAQ: AEP) for the fiscal year 2026. In a research note issued on November 28, 2023, analyst A. Weisel projected that the company’s earnings will reach $6.36 per share, an increase from the previous estimate of $6.29. Scotiabank maintains a “Sector Perform” rating on the stock, with a price target of $121.00.
The consensus estimate for American Electric Power’s current full-year earnings stands at $5.87 per share. The company reported its quarterly earnings on October 29, 2023, announcing an earnings per share of $1.80, slightly below the consensus estimate of $1.81. Revenue for the quarter totaled $6.01 billion, exceeding analysts’ expectations of $5.65 billion.
Quarterly Performance and Future Guidance
American Electric Power showed a net margin of 17.23% and a return on equity of 11.00%. Comparing to the same quarter of the previous year, revenue increased by 10.9%. For fiscal year 2025, the company has set guidance between $5.85 and $5.95 per share.
As of November 27, 2023, shares of American Electric Power opened at $119.23. The stock has fluctuated within a range of $89.91 to $124.80 over the past year. Current market capitalization is approximately $63.68 billion, with a price-to-earnings ratio of 17.38 and a beta of 0.61.
Investor Activity and Insider Transactions
Recent activity indicates increased interest from institutional investors. Harbor Capital Advisors Inc. and Meeder Asset Management Inc. each acquired new positions valued at about $26,000 during the third quarter. Additionally, Dogwood Wealth Management LLC expanded its holdings by 330.2%, now owning 228 shares valued at $26,000 after purchasing an additional 175 shares.
In terms of insider trading, Kelly J. Ferneau, Executive Vice President, sold 1,006 shares on October 2, 2023, for a total of $112,672. This sale resulted in a 15.06% reduction of their position. Similarly, Director Benjamin G. S. Fowke III sold 5,000 shares on September 12, 2023, for $543,250, marking a 10.89% decrease in their holdings.
Over the past three months, insiders have sold a total of 16,006 shares, amounting to $1,851,422. Currently, insiders hold 0.07% of the company’s stock.
American Electric Power recently announced a quarterly dividend of $0.95 per share, which will be paid on December 10, 2023, to shareholders of record as of November 10, 2023. This dividend reflects an annualized payout of $3.80 and a yield of 3.2%, an increase from the previous quarterly dividend of $0.93. The company’s dividend payout ratio is currently at 55.39%.
American Electric Power Company, Inc. operates as an electric public utility holding company, involved in the generation, transmission, and distribution of electricity for retail and wholesale customers across the United States. The company is structured into various segments, including Vertically Integrated Utilities and Transmission and Distribution Utilities.
