abrdn plc Increases Stake in American Electric Power Company

abrdn plc has enhanced its investment in American Electric Power Company, Inc. (NASDAQ:AEP - Free Report) by 20.5% during the third quarter, as indicated in its latest filing with the Securities and Exchange Commission (SEC). Following this increase, abrdn plc now holds 359,708 shares of the company's stock, having acquired an additional 61,267 shares in the specified period. The firm's stake in American Electric Power is valued at approximately $36,967,000, which constitutes around 0.07% of the total company ownership according to their recent SEC disclosure.

Institutional Investors Adjust Positions

Additionally, several other large investors have made modifications to their positions in American Electric Power's stock recently. For instance, Orrstown Financial Services Inc. established a new stake in the company worth approximately $311,000 during the third quarter. TCI Wealth Advisors Inc. also entered into a new position valued at around $202,000. Furthermore, Concord Wealth Partners raised its ownership in American Electric Power shares by 30% during the same quarter, bringing their total to 1,843 shares valued at $189,000 after purchasing an extra 425 shares. First American Bank increased its holdings by 1.4%, owning 82,998 shares worth $8,516,000 after acquiring an additional 1,182 shares. J.W. Cole Advisors Inc. also augmented its stake by 6.4%, now holding 17,929 shares valued at $1,840,000 following a purchase of 1,079 extra shares. Overall, institutional investors control approximately 75.24% of American Electric Power's stock.

Analyst Ratings and Market Outlook

American Electric Power has been the focus of various analyst evaluations lately. For instance, Scotiabank raised its target price for the shares from $99.00 to $108.00 while rating it as a "sector outperform" on August 20. Similarly, BMO Capital Markets increased its price target from $109.00 to $114.00, providing an "outperform" rating on October 3. Morgan Stanley adjusted its target price from $102.00 to $108.00 with an "overweight" rating on September 25. Jefferies Financial Group initiated coverage with a "hold" rating and a target price of $107.00. Meanwhile, Bank of America slightly adjusted its price target from $97.00 to $98.00, rating it as "underperform" on August 29. In general, the consensus among analysts shows that American Electric Power has a "Hold" rating and the average target price is set at $98.43.

Latest Stock Performance and Earnings Report

The stock opened at $97.40 on Thursday, with American Electric Power's shares experiencing a one-year low of $74.73 and a high of $105.18. The company's current market capitalization stands at $51.83 billion with a price-to-earnings ratio of 19.40 and a PEG ratio of 2.79. Their 50-day moving average is at $100.69, while the 200-day moving average is $94.20. On financial ratios, the current ratio is 0.65, the quick ratio is 0.48, and the debt-to-equity ratio is 1.53.

American Electric Power recently reported its quarterly earnings on July 30, where it posted an earnings per share (EPS) of $1.25, which surpassed the consensus estimate of $1.23 by $0.02. The firm's return on equity was recorded at 11.31%, with a net margin of 13.52%. However, revenue for the quarter was noted at $4.60 billion, falling short of the analyst estimates that anticipated $4.74 billion. Compared to the corresponding quarter from the previous year, the company's earnings per share rose from $1.13, translating to a year-over-year revenue increase of 4.5%. Analysts predict that American Electric Power will achieve an EPS of 5.6 for the ongoing fiscal year.

Dividend Announcement

On a further positive note, American Electric Power recently declared a quarterly dividend which is scheduled for payment on December 10, with stockholders of record on November 8 set to receive a dividend of $0.93. This reflects an increase from the previous dividend amount of $0.88. The ex-dividend date is also set for November 8. This results in an annualized dividend of $3.72, yielding a dividend yield of 3.82%, with a payout ratio of 74.10%.

Company Overview

American Electric Power Company, Inc. is a public utility holding company engaged in producing, transmitting, and distributing electricity to retail and wholesale customers throughout the United States. The company operates through several segments, including Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing.

investment, stake, electricity