Waldron Private Wealth Reduces Stake in American Electric Power

Waldron Private Wealth LLC has decreased its holdings in American Electric Power Company, Inc. (NASDAQ:AEP) by 1.9% during the second quarter of 2023. The institutional investor now owns 7,373 shares of the utility giant after selling 143 shares during this period. As of its latest filing with the Securities and Exchange Commission (SEC), Waldron Private Wealth’s stake in American Electric Power is valued at approximately $765,000.

Several other institutional investors have also adjusted their positions in American Electric Power. Vanguard Group Inc. increased its stake by 1.1% in the first quarter, acquiring an additional 579,175 shares. This brings Vanguard’s total holdings to 52,269,781 shares, valued at $5.71 billion. Similarly, Wellington Management Group LLP raised its stake by 24.3%, now owning 22,102,537 shares worth $2.42 billion. GQG Partners LLC boosted its holdings by 30.4%, acquiring 4,570,941 shares, while Northern Trust Corp increased its stake by 8.0%. Nuveen LLC also entered the fray, acquiring a new stake valued at $568 million. Collectively, institutional investors and hedge funds own 75.24% of American Electric Power’s stock.

Analysts’ Perspectives on American Electric Power

Recent evaluations from equities research analysts have been largely positive regarding American Electric Power. Barclays raised its target price for the stock from $111.00 to $117.00 and maintained an “equal weight” rating. BMO Capital Markets increased its target from $121.00 to $127.00, issuing an “outperform” rating. Conversely, LADENBURG THALM/SH SH lowered its target from $112.00 to $108.50, assigning a “neutral” rating. The Goldman Sachs Group also raised its target price from $125.00 to $128.00 with a “buy” rating. Currently, ten analysts rate the stock as a Buy, nine as Hold, and one as Sell. According to MarketBeat, the stock has a consensus rating of “Hold” with a target price of approximately $119.74.

Recent Insider Activities

In addition to institutional trading, insider activity at American Electric Power has garnered attention. Executive Vice President Kelly J. Ferneau sold 1,006 shares on October 2, 2023, at an average price of $112.00, resulting in total proceeds of $112,672.00. Following this sale, Ferneau holds 5,676 shares, valued at around $635,712.

On October 10, 2023, Director Benjamin G. S. Fowke III sold 5,000 shares at an average price of $117.52, realizing $587,600.00. After this transaction, Fowke owns 35,898 shares, valued at approximately $4.22 million. In total, insiders have sold 11,006 shares for a cumulative value of $1.24 million over the past three months.

Current Stock Performance and Financial Outlook

On October 13, 2023, American Electric Power stock opened at $115.98. The company has a 50-day simple moving average of $112.31 and a 200-day simple moving average of $107.97. The stock has fluctuated between a 12-month low of $89.91 and a high of $120.46. With a market capitalization of $62.02 billion, it has a price-to-earnings ratio of 16.96 and a beta of 0.48.

American Electric Power reported its quarterly earnings results on July 30, 2023, showing earnings per share of $1.43, which exceeded analysts’ expectations of $1.27. The company’s revenue for the quarter was $5.09 billion, surpassing forecasts of $4.85 billion and reflecting an increase of 11.1% year-over-year. The firm has set its fiscal year 2025 guidance at earnings per share between $6.570 and $6.770.

In terms of dividends, American Electric Power announced a quarterly dividend of $0.95 per share, payable on December 10, 2023, to shareholders of record on November 10, 2023. This marks an increase from the previous dividend of $0.93 and represents an annualized yield of 3.3%.

American Electric Power Company, Inc. operates as a public utility holding company involved in the generation, transmission, and distribution of electricity across the United States. Its various segments include Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing.

As institutional investors continue to adjust their positions and analysts remain optimistic, American Electric Power appears well-positioned for future growth amidst a changing energy landscape.