On February 1, 2023, Wells Fargo downgraded their outlook for American Electric Power from Overweight to Equal-Weight.
Analyst Price Forecast Suggests 12.36% Upside
As of February 2, 2023, the average one-year price target for American Electric Power is $106.35. The forecasts range from a low of $93.93 to a high of $118.65. The average price target represents an increase of 12.36% from its latest reported closing price of $94.65.
The projected annual revenue for American Electric Power is $18,347MM, a decrease of 2.51%. The projected annual EPS is $5.35, an increase of 10.68%.
American Electric Power Declares $0.83 Dividend
American Electric Power said on January 24, 2023 that its board of directors declared a regular quarterly dividend of $0.83 per share ($3.32 annualized). Shareholders of record as of February 9, 2023 will receive the payment on March 10, 2023. Previously, the company paid $0.83 per share.
At the current share price of $94.65 / share, the stock's dividend yield is 3.51%. Looking back five years and taking a sample every week, the average dividend yield has been 3.37%, the lowest has been 2.69%, and the highest has been 4.00%. The standard deviation of yields is 0.26 (n=235).
The current dividend yield is 0.51 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.69. 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 are large shareholders doing?
Wellington Management Group Llp holds 19,159,109 shares representing 3.73% ownership of the company. In it's prior filing, the firm reported owning 19,102,123 shares, representing an increase of 0.30%. The firm decreased its portfolio allocation in AEP by 4.41% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 15,318,259 shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 15,114,203 shares, representing an increase of 1.33%. The firm decreased its portfolio allocation in AEP by 4.80% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 11,646,182 shares representing 2.27% ownership of the company. In it's prior filing, the firm reported owning 11,368,033 shares, representing an increase of 2.39%. The firm decreased its portfolio allocation in AEP by 4.54% over the last quarter.
Ameriprise Financial holds 11,226,812 shares representing 2.18% ownership of the company. In it's prior filing, the firm reported owning 12,138,145 shares, representing a decrease of 8.12%. The firm decreased its portfolio allocation in AEP by 83.80% over the last quarter.
Geode Capital Management holds 10,135,478 shares representing 1.97% ownership of the company. In it's prior filing, the firm reported owning 9,838,972 shares, representing an increase of 2.93%. The firm decreased its portfolio allocation in AEP by 3.82% over the last quarter.
Fund Sentiment
There are 2257 funds or institutions reporting positions in American Electric Power. This is a decrease of 16 owner(s) or 0.70%.
Average portfolio weight of all funds dedicated to US:AEP is 0.3743%, a decrease of 0.9686%. Total shares owned by institutions decreased in the last three months by 1.61% to 453,898K shares.
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.
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.
