American Electric Power (NASDAQ:AEP) Now Covered by Analysts at HSBC

Stock analysts at HSBC initiated coverage on shares of American Electric Power (NASDAQ:AEP) in a report released on Thursday, Marketbeat.com reports. The firm set a “buy” rating and a $145.90 price target on the stock. HSBC’s target price indicates a potential upside of 14.53% from the stock’s previous close.

Several other brokerages also recently weighed in on AEP. JPMorgan Chase & Co. lowered their price target on shares of American Electric Power from $140.00 to $135.00 and set a “neutral” rating on the stock in a report on Monday. UBS Group set a $135.00 price target on American Electric Power in a research note on Monday. BTIG Research upgraded shares of American Electric Power from a “neutral” rating to a “buy” rating and set a $147.00 price target on the stock in a report on Tuesday. Scotiabank dropped their price target on American Electric Power from $140.00 to $131.00 and set a “sector perform” rating for the company in a research note on Wednesday, September 30th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of American Electric Power in a report on Thursday, August 27th. Sixteen equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $138.29.

American Electric Power Trading Up 0.1%

Shares of NASDAQ:AEP opened at $127.39 on Thursday. The company has a market cap of $69.35 billion, a P/E ratio of 21.85, a PEG ratio of 2.63 and a beta of 0.48. The company has a debt-to-equity ratio of 1.44, a current ratio of 0.50 and a quick ratio of 0.38. American Electric Power has a 1 year low of $112.54 and a 1 year high of $140.58. The stock’s fifty day moving average price is $122.80 and its 200-day moving average price is $128.49.

American Electric Power (NASDAQ:AEP) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). The company had revenue of $5.45 billion during the quarter, compared to the consensus estimate of $5.34 billion. American Electric Power had a return on equity of 9.95% and a net margin of 13.78%. The business’s revenue was up 7.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.43 earnings per share. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. Sell-side analysts expect that American Electric Power will post 6.39 earnings per share for the current year.

Insider Transactions at American Electric Power

In related news, CAO Kate Dixon sold 2,000 shares of American Electric Power stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $125.00, for a total transaction of $250,000.00. Following the completion of the sale, the chief accounting officer owned 15,856 shares of the company’s stock, valued at $1,982,000. The trade was a 11.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.05% of the company’s stock.

Hedge Funds Weigh In On American Electric Power

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Elevation Wealth Partners LLC lifted its holdings in American Electric Power by 118.0% in the 2nd quarter. Elevation Wealth Partners LLC now owns 194 shares of the company’s stock valued at $27,000 after purchasing an additional 105 shares in the last quarter. Costello Asset Management INC raised its position in American Electric Power by 100.0% in the first quarter. Costello Asset Management INC now owns 200 shares of the company’s stock valued at $26,000 after purchasing an additional 100 shares during the period. Parvin Asset Management LLC acquired a new position in American Electric Power in the second quarter valued at about $27,000. Caitlin John LLC purchased a new stake in American Electric Power in the second quarter valued at approximately $27,000. Finally, Premier Financial Group acquired a new stake in shares of American Electric Power during the second quarter worth about $28,000. 75.24% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting American Electric Power

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: Analyst upgrades improve sentiment. BTIG upgraded AEP to Buy from Neutral, citing expectations that growth will accelerate. Zacks also raised the stock to Rank #2 (Buy), reflecting improving earnings prospects. BTIG upgrades AEP Zacks upgrades AEP
• Positive Sentiment: Dividend increased for the 15th consecutive year. AEP raised its quarterly dividend by $0.02 to $0.97 per share, payable December 10 to shareholders of record November 10. The new annualized payout is $3.88, representing an indicated yield of approximately 3.0%. AEP dividend increase
• Positive Sentiment: Potential earnings catalyst is approaching. Wall Street expects earnings growth in AEP’s upcoming quarterly report, and Zacks says the company has indicators that could support an earnings beat. AEP earnings expectations
• Positive Sentiment: Amazon-linked nuclear development could add long-term growth. A proposed nuclear plant involving Amazon, AEP and X-energy is drawing local attention and could support future power-demand growth, though the project remains subject to approvals and execution risks. Proposed Amazon-AEP nuclear plant
• Neutral Sentiment: Analyst views are mixed. While BTIG turned bullish, other coverage describes analysts as neutral, and JPMorgan lowered its price expectations for AEP stock. This may limit upside until earnings or project developments provide further confirmation.
• Negative Sentiment: Dividend sustainability is a concern. Commentary questions whether AEP’s cash flow can comfortably support continued payout growth, potentially weighing on income-focused investors despite the latest increase. AEP dividend sustainability analysis

About American Electric Power

American Electric Power (NASDAQ:AEP) is an electric utility holding company that generates, transmits and distributes electricity to residential, commercial, industrial and institutional customers. Through its operating companies, AEP provides regulated electric service and manages power generation assets using a mix of energy resources, including natural gas, coal, nuclear, hydroelectric and renewable energy.

AEP operates one of the largest electric transmission systems in the United States and supplies electricity across portions of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.