AEP stock: buy or sell?

AEP stock price: $90.51 -0.75% At close on July 16th, 2019

Updated on:
July 16th, 2019

4

American Electric Power declined an ugly -0.75% and closed at $90.51.

American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States.

Should I buy AEP stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to choose your own trading strategy that matches with your character as inversor. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with American Electric Power stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is American Electric Power stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 13 ratings published for AEP stock in the last 30 days.

The general sentiment of these ratings is bullish for AEP stock, with 6 positive ratings.
Is AEP a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-9Bank of AmericaBuyBuy
2019-7-12UBS Groupn/aBuy
2019-6-14Morgan Stanleyn/aEqual Weight
2019-6-14Morgan Stanleyn/aEqual Weight
2019-5-9UBS GroupBuyBuy
2019-5-16Morgan Stanleyn/aEqual Weight
2019-4-8Goldman Sachs GroupBuyNeutral
2019-4-26Wells Fargo & CoOutperformOutperform
2019-4-18Morgan StanleyOverweightEqual Weight
2019-3-12JPMorgan Chase & Co.NeutralOverweight
2019-2-12Morgan StanleyOverweightOverweight
2019-1-7GuggenheimBuyNeutral
2019-1-3MizuhoBuyNeutral

AEP stock analysis

Daily outlook

American Electric Power shares declined -0.75% to $90.51 today.

American Electric Power ended today at $90.51 and declined an ugly -0.75%. From a daily perspective, AEP is in a short term uptrend after plotting its last bottom ($88.38, on Jul/5) higher than the previous bottom, and its last top ($91.42, on Thursday) also over the previous top. Now trading in between its last bottom and last top AEP might consolidate in a plain range, waiting to break out over $91.42 or down under $88.38. On Jun 24th, AEP hit a new all time high, pushing higher than on Jun/20 tops. Check different trading setups that use ATHs as triggers. Since last May when AEP stock price broke up the SMA50d line, it gained $7.64 (9.22%).

AEP stock chart (daily)

Weekly outlook

American Electric Power remained steady a slightly good 0.29% this week. With this, it's been 3 green weeks in a row, gaining $2.50 or 2.73%.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $91.99 resistance. Not so far away is the last price record American Electric Power marked late June. Since late August 2018 when SMA20w and SMA40w crossed up, AEP price gained $20.76 per share (29.76%). Early January AEP price bounced up over the SMA of 20 weeks that acted as support stopping new slides.

AEP stock chart (weekly)

AEP stock price history

AEP stock historical price chart

AEP stock reached all-time highs on Jun 24th with a price of $91.99.

AEP stock price target is $91.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' AEP stock price predictions in the hope that they will be met as they may be wrong and not met. We detected 9 price targets for AEP stock released in the last 30 days:
AEP stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-9Bank of AmericaReiterates$93.00$98.005.4%
2019-7-12UBS GroupRaises Target$94.00$100.006.4%
2019-6-14Morgan StanleyReiterates$88.00$92.004.5%
2019-6-14Morgan StanleyRaises Target$88.00$92.004.5%
2019-5-9UBS GroupRaises Target$89.00$94.005.6%
2019-5-16Morgan StanleyRaises Target$87.00$88.001.1%
2019-4-8Goldman Sachs GroupDowngradesn/a$78.00-
2019-4-26Wells Fargo & CoRaises Target$89.00$93.004.5%
2019-2-12Morgan StanleyRaises Target$81.00$84.003.7%
(in average)$88.60$91.003.0%
The price prediction for American Electric Power stock is $91.00, moving in a range between $100.00 and $78.00. In average, analysts' outlook on AEP price forecast is positive, upgrading the prediction by a 3.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when American Electric Power presented its last earnings report, it jumped a more than good 9.18%. Unfortunately, reported EPS is not yet available in our database.
AEP earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.76n/a
2017-Q32017-10-261.161.1-5.2%
2017-Q42018-01-250.790.857.6%
2018-Q12018-04-260.990.96-3.0%
2018-Q22018-07-250.881.0114.8%
2018-Q32018-10-251.231.251.6%
2018-Q42019-01-240.720.720.0%
2019-Q12019-04-241.04n/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, American Electric Power annual revenues inched a fine 5.00% to $16,195.70 million dollars from $15,424.90 marked in 2017. Instead, its profit margin (compared to revenues) remained constant to 11.88%, that is $1,923.80 million.

American Electric Power fiscal year ends in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, American Electric Power TTM sales up to March 2019 were $16,204.20 and income $2,042.20 million dollars. If we compare this TTM figures with the last reported annuality, we can esteem American Electric Power business evolution since December 2018: Annual sales up to March, compared to lastest yearly report, stayed stable a neutral 0.05%. Similarly, profit margin (net income/sales) stayed constant at 11.88%.

AEP annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$15,290 M-$1,480 M9.7%-
2014$17,020 M11.31%$1,634 M9.6%10.41%
2015$16,453 M-3.33%$2,047 M12.4%25.28%
2016$16,380 M-0.44%$611 M3.7%-70.16%
2017$15,425 M-5.83%$1,913 M12.4%213.08%
2018$16,196 M5.00%$1,924 M11.9%0.59%
TTM $16,204 M0.05%$2,042 M12.6%6.15%

Quarterly financial results

American Electric Power reported $4,056.80 million in sales for 2019-Q1, a 6.73% up compared to previous quarter. Reported quarter income marked $572.80 million with a profit margin of 14.12%. Profit margin grew a 4.56% compared to previous quarter when profit margin was 9.56%. When comparing sales to same quarter last year, American Electric Power sales marked a neutral movement and stayed stable a 0.21%.
AEP quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$3,570 M-$375 M10.5%-
2017-Q3$4,090 M14.57%$545 M13.3%45.25%
2017-Q4$3,810 M-6.84%$401 M10.5%-26.44%
2018-Q1$4,048 M6.24%$454 M11.2%13.40%
2018-Q2$4,013 M-0.87%$528 M13.2%16.29%
2018-Q3$4,333 M7.97%$578 M13.3%9.31%
2018-Q4$3,801 M-12.28%$363 M9.6%-37.08%
2019-Q1$4,057 M6.73%$573 M14.1%57.62%

American Electric Power ownership

When you are planning to invest in shares of a company, it's worth to have a look its ownership structure.

American Electric Power shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.02% of all shares.

In case of American Electric Power stock, 75.76% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for AEP stock account 0.00%, no big difference from last month.

For a better context understanding, the next table shows ownership data compared to other related companies:

AEPAESDDUKETR
Market cap$44.7 B$11.4 B$50.5 B$65.1 B$19.9 B
Total shares493.4 M662.4 M651.6 M728.1 M189.9 M
Float shares493.1 M661.3 M800.2 M727.5 M189.3 M
  - Institutional holdings (%)75.8%97.4%60.2%61.7%91.2%
  - Insider holdings (%)0.0%0.4%0.3%0.1%0.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

AEP summary

Tuesday, July 16th, 2019
Open$90.77
Close$90.51
Day range$89.96 - $91.17
Previous close$91.19
Session gain-0.75%
Average true range$1.28
50d mov avg$88.16
100d mov avg$85.37
200d mov avg$79.84
Daily patternlt06a
Weekly pattern lb02a

American Electric Power performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For American Electric Power, the benchmark is made against The AES, Dominion Energy, Duke Energy, Entergy, Exelon, NRG Energy, PPL, Southern and Xcel Energy.
Stock3m6m12m
AEPAmerican Electric...9.91%20.94%33.02%
AESThe AES-2.45%12.09%36.33%
DDominion Energy4.66%15.44%13.96%
DUKDuke Energy1.36%6.66%15.75%
ETREntergy13.24%23.90%35.66%
EXCExelon-1.31%6.61%18.66%
NRGNRG Energy-13.01%-11.52%11.27%
PPL -0.16%4.13%14.83%
SOSouthern8.35%20.69%23.04%
XELXcel Energy12.65%22.36%38.10%

American Electric Power competitors

One check before trading any stock is to have a look a list of its competitors, in this case for American Electric Power. We picked 9 companies as American Electric Power competitors as they are in the same industry or have similar market objectives.

Latest AEP stock news