Guggenheim has recently raised American Electric Power Company Inc (AEP) stock to Buy rating, as announced on January 23, 2025, according to Finviz. Earlier, on January 13, 2025, BofA Securities had raised the stock from a Underperform to Buy, setting a price target of $104 for AEP stock. Scotiabank also reduced Sector Perform rating with a price target of $102. Additionally, JP Morgan reduced Neutral rating on December 12, 2024, with a target price of $102. Jefferies analysts, in their report published on September 20, 2024, also initiated Hold rating for American Electric Power Company Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
American Electric Power Company Inc (AEP) Stock Trading Recap
On Thursday, American Electric Power Company Inc (AEP) stock saw a decline, ending the day at $100.99 which represents a decrease of $-1.36 or -1.33% from the prior close of $102.35. The stock opened at $101.37 and touched a low of $100.32 during the day, reaching a high of $102.57. The volume of shares traded was 4.94 million exceeding the average volume of 2.90 million.
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AEP Stock Performance and Moving Averages
In recent trading, American Electric Power Company Inc (AEP) stock price has shown some volatility, fluctuating 0.82% over the last five trades and 6.87% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 2.91%, and it has gained 6.86% in the previous three months. Currently, AEP is trading at 1.74%, 5.48%, and 5.78% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AEP, a Utilities sector stock, is trading -3.98% below its 52-week high but remains 30.29% above its 52-week low. The Average True Range (ATR) (14 days) of 1.96 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
American Electric Power Company Inc’s Profitability and Valuation Ratios
American Electric Power Company Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 21.80% and a profit margin of 13.26%, with a gross margin of 2.91%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, American Electric Power Company Inc’s market capitalization stands at $53.78 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 20.28, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 16.02. Additionally, the Price-to-Sales Ratio is 2.7, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.02, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.31% of American Electric Power Company Inc (AEP)’s shares, while financial institutions hold 77.15%.
Notable insider trades include Smyth Antonio P, Executive Vice President at American Electric Power Company Inc (AEP), who sold 4898 shares on Jun 05 ’24, at $90 each, totaling $0.44 million. On May 31 ’24, Hall Greg B, Executive Vice President, sold 5880 shares for $88.25 each, amounting to $0.52 million.
