Fintel reports that on July 11, 2023, CFRA upgraded their outlook for American Electric Power (NASDAQ:AEP) from Hold to Buy .
Analyst Price Forecast Suggests 18.91% Upside
As of July 6, 2023, the average one-year price target for American Electric Power is 100.29. The forecasts range from a low of 88.38 to a high of $118.65. The average price target represents an increase of 18.91% from its latest reported closing price of 84.34.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Electric Power is 18,347MM, a decrease of 7.05%. The projected annual non-GAAP EPS is 5.35.
American Electric Power Declares $0.83 Dividend
On April 25, 2023 the company declared a regular quarterly dividend of $0.83 per share ($3.32 annualized). Shareholders of record as of May 10, 2023 received the payment on June 9, 2023. Previously, the company paid $0.83 per share.
At the current share price of $84.34 / share, the stock's dividend yield is 3.94%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.38%, the lowest has been 2.69%, and the highest has been 4.00%. The standard deviation of yields is 0.27 (n=235).
The current dividend yield is 2.08 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.86. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.19%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2265 funds or institutions reporting positions in American Electric Power. This is a decrease of 52 owner(s) or 2.24% in the last quarter. Average portfolio weight of all funds dedicated to AEP is 0.35%, a decrease of 11.18%. Total shares owned by institutions decreased in the last three months by 2.67% to 452,045K shares. 
The put/call ratio of AEP is 0.76, indicating a bullish outlook.
What are Other Shareholders Doing?
Wellington Management Group Llp holds 24,171K shares representing 4.70% ownership of the company. In it's prior filing, the firm reported owning 22,995K shares, representing an increase of 4.87%. The firm decreased its portfolio allocation in AEP by 85.95% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 15,913K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 15,620K shares, representing an increase of 1.84%. The firm decreased its portfolio allocation in AEP by 9.86% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 11,990K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 11,879K shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in AEP by 10.30% over the last quarter.
Ameriprise Financial holds 11,293K shares representing 2.20% ownership of the company. In it's prior filing, the firm reported owning 11,978K shares, representing a decrease of 6.07%. The firm decreased its portfolio allocation in AEP by 84.06% over the last quarter.
Geode Capital Management holds 10,054K shares representing 1.95% ownership of the company. In it's prior filing, the firm reported owning 10,209K shares, representing a decrease of 1.54%. The firm decreased its portfolio allocation in AEP by 12.72% over the last quarter.
American Electric Power Background Information
(This description is provided by the company.)
American Electric Power , is a major investor-owned electric utility in the United States, delivering electricity to more than five million customers in 11 states.[citation needed] AEP ranks among the nation's largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes 765 kilovolt ultra-high voltage transmission lines, more than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in the Electric Reliability Council of Texas, the transmission system that covers much of Texas.
Additional reading:
- SUPPLEMENTAL INDENTURE NO. 5 BETWEEN AMERICAN ELECTRIC POWER COMPANY, INC. AND THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A. TRUSTEE DATED AS OF June 2, 2023 5.699% JUNIOR SUBORDINATED DEBENTURES DUE 2025
- TABLE OF CONTENTS
- News from AEP
- MINE SAFETY INFORMATION
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
