The Illinois Municipal Retirement Fund has increased its investment in American Electric Power Company, Inc. (NASDAQ: AEP) by 18.3% during the third quarter of 2023. This information was disclosed in a recent filing with the Securities and Exchange Commission (SEC). Following this adjustment, the fund now holds a total of 118,758 shares, having acquired an additional 18,402 shares during the quarter. The value of these holdings is approximately $13.36 million.
Several other institutional investors have also made noteworthy adjustments to their investments in American Electric Power. For instance, Harbor Capital Advisors Inc. and Meeder Asset Management Inc. both established new stakes in the company during the third quarter, each valued at around $26,000. Additionally, Advantage Trust Co increased its holdings by 57.1% in the second quarter, now owning 275 shares worth $29,000 after acquiring 100 more shares. Montag A & Associates Inc. expanded its stake by 166.0% during the same period, owning 282 shares valued at $29,000. Similarly, GoalVest Advisory LLC lifted its stake by a remarkable 277.1%, now holding 313 shares worth $32,000. Overall, institutional investors and hedge funds currently own approximately 75.24% of American Electric Power’s stock.
Recent Earnings and Dividend Announcement
American Electric Power recently reported its quarterly earnings on February 12, 2024, achieving earnings per share of $1.19, exceeding analysts’ expectations of $1.15 by $0.04. The company’s revenue for the quarter reached $5.32 billion, surpassing the anticipated $5.07 billion. This performance reflects a year-over-year revenue increase of 13.2%. In the same quarter last year, the company reported earnings per share of $1.24.
Looking ahead, American Electric Power has set its fiscal year 2026 earnings guidance in the range of $6.150 to $6.450 per share. Analysts forecast the company’s earnings for the current fiscal year to be around $5.87 per share.
In addition to its strong earnings report, American Electric Power announced a quarterly dividend of $0.95 per share, payable on March 10, 2024. Shareholders of record as of February 10, 2024 will receive this dividend, which translates to an annualized dividend of $3.80 and a dividend yield of 3.0%. The company’s current payout ratio stands at 55.39%.
Insider Activity and Analyst Ratings
In related insider activity, Benjamin G. S. Fowke III, a director at the company, sold 5,000 shares on December 12, 2023, at an average price of $115.07, totaling $575,350. This sale resulted in a 16.18% decrease in his holdings, leaving him with 25,898 shares valued at approximately $2.98 million.
Analysts have varied opinions regarding American Electric Power’s stock. Morgan Stanley reiterated an “overweight” rating with a price target of $125.00. Conversely, Bank of America downgraded the stock from “buy” to “neutral” and reduced its price target from $131.00 to $122.00. Overall, one analyst rates the stock as a Strong Buy, nine as Buy, nine as Hold, and one as Sell. The average rating is currently a “Moderate Buy” with a consensus price target of $127.39.
American Electric Power, headquartered in Columbus, Ohio, operates as a major investor-owned electric utility. The company focuses on the generation, transmission, and distribution of electricity, managing a diverse array of power plants and a significant high-voltage transmission network. Its operations cover the entire utility value chain, including fossil-fuel, natural gas, nuclear, and hydropower generation, with an increasing emphasis on renewable energy sources.
