AEP stock: buy or sell?

AEP stock price: $93.16 -0.02% At close on September 20th, 2019

Updated on:
September 20th, 2019

5

After climbing for 4 days, Friday American Electric Power remained constant a tight -0.02%, closing at $93.16.

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?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. That's why is so important to choose your own trading strategy that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, 2 buy setups match with American Electric Power stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

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 15 ratings published for AEP stock in the last 30 days.

The general sentiment of these ratings is bullish for AEP stock, with 8 positive ratings.
Is AEP a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-20UBS Groupn/aBuy
2019-8-16Morgan Stanleyn/aEqual Weight
2019-8-12SunTrust Banksn/aBuy
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

AEP stock analysis

Daily outlook

After reaching all time highs today, American Electric Power remained constant -0.02% today to $93.16.

American Electric Power shares set new all time highs again today, marking to $93.56. Shares ended at $93.16 and remained stable -0.02%. From a daily outlook perspective, AEP is drawing an uptrend of rising tops and rising bottoms. Since its last top on September/4 at $93.23, price slid and bounced up back from $90.08. Crossing $93.23 with intention in the next few days will confirm this strong uptrend. For the last 36 days when AEP stock price broke up the SMA50d line, it gained $4.68 (5.29%).

AEP stock chart (daily)

Weekly outlook

American Electric Power shares set new all time highs back again this week, marking to $93.56. Shares closed at $93.16 and inched 1.77% during the week.

In a weekly time frame, American Electric Power stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, AEP might consolidate in a flat-base, waiting to break out over or down under . 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 today with a price of $93.56.

AEP stock price target is $92.80

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 12 price predictions for American Electric Power stock:
AEP stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-20UBS GroupReiterates$100.00$105.005%
2019-8-16Morgan StanleyLowers Target$93.00$91.00-2.2%
2019-8-12SunTrust BanksRaises Target$98.00$99.001%
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)$90.90$92.802.0%
Moving in a range from $105.00 and $78.00, the price target for AEP stock is $92.80.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since April, when American Electric Power published its last earnings report, it . 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 turnover grew a good 5.00% to $16,195.70 M dollars from $15,424.90 marked in 2017. Slightly worse, its earnings 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 turnover up to March, compared to lastest yearly report, remained constant a tight 0.05%. Aligned with this, profit margin (net income/sales) stayed stable 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 posted $4,056.80 M in sales for 2019-Q1, a 6.73% improvement compared to previous quarter. Reported quarter earnings marked $572.80 M with a profit margin of 14.12%. Profit margin stepped up a 4.56% compared to previous quarter when profit margin was 9.56%. When comparing revenues to same quarter last year, American Electric Power sales marked a neutral move 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 a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For American Electric Power, 0.02% of all outstanding shares are owned by its staff.

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.

The following table compares ownership indicators for other stocks related to American Electric Power:

AEPAESDDUKETR
Market cap$46.0 B$10.6 B$64.9 B$68.8 B$22.9 B
Total shares493.8 M663.9 M803.4 M728.6 M198.8 M
Float shares493.2 M661.1 M800.7 M727.6 M198.1 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

Friday, September 20th, 2019
Open$93.33
Close$93.16
Day range$92.89 - $93.56
Previous close$93.18
Session gain-0.02%
Average true range$1.18
50d mov avg$90.31
100d mov avg$88.72
200d mov avg$83.61
Daily patternlb03b
Weekly pattern lt06a

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 comparison is made against The AES, Dominion Energy, Duke Energy, Entergy, Exelon, NRG Energy, PPL, Southern and Xcel Energy.
Stock3m6m12m
AEPAmerican Electric...2.52%11.13%34.86%
AESThe AES-4.09%-10.24%18.15%
DDominion Energy4.38%9.59%19.59%
DUKDuke Energy6.66%6.42%23.52%
ETREntergy11.33%21.91%44.88%
EXCExelon-3.10%-2.16%14.43%
NRGNRG Energy10.42%-8.53%7.63%
PPL 0.73%0.67%12.08%
SOSouthern9.76%20.42%45.56%
XELXcel Energy5.09%14.10%39.18%

American Electric Power competitors

We selected a few stocks to conform a list of American Electric Power competitors to examine if you are interested in investing in AEP:

Latest AEP stock news