AEP stock: buy or sell?
Updated on:
March 27th, 2020
2
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?
Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. 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 setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is American Electric Power stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
Unfortunately, we couldn't find any rating for AEP stock for the last month.AEP stock analysis
Daily outlook
After boosting an exceptional 10.40% on March 26th, American Electric Power closed yesterday at $83.40 and jumped a beatiful 1.96%.
After boosting an exceptional 10.40% on Mar/26, American Electric Power closed yesterday at $83.40 and jumped a beatiful 1.96%. For the last 17 days when AEP stock price broke down the SMA200d line, it slid $-11.32 per share (-11.95%). AEP marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $95.77 would break this short term down trend and open possibilities for reversing this situation. On Feb/18, AEP hit new all time highs, pushing higher previous ATH of $104.25 recorded on February. New ATHs are usual entry points for many trading setups as there aren't higher resistences.
Weekly outlook
After sliding a spooky -21.02% in a week last week, American Electric Power closed this week at $83.40 and climbed a super good 16.72%.
Once American Electric Power failed to resist above the support, it inevitably fell deeper. Not so far away is the last price record American Electric Power marked by mid February, but since then it dropped a 20.29%. Since price and 40-weeks moving average lines crossed down early March, AEP fell $-14.30 per share (-14.64%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support.
AEP stock price history
AEP stock historical price chart
AEP stock reached all-time highs on Feb 18th with a price of $104.63.
AEP stock price target
How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. 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. For the last 30 days we have not found any price prediction for American Electric Power stock by any trusted analyst.Financials and fundamental analysis
Earnings date and Earnings per Share
Since last April, when American Electric Power presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 0.76 | n/a |
| 2017-Q3 | 2017-10-26 | 1.16 | 1.1 | -5.2% |
| 2017-Q4 | 2018-01-25 | 0.79 | 0.85 | 7.6% |
| 2018-Q1 | 2018-04-26 | 0.99 | 0.96 | -3.0% |
| 2018-Q2 | 2018-07-25 | 0.88 | 1.01 | 14.8% |
| 2018-Q3 | 2018-10-25 | 1.23 | 1.25 | 1.6% |
| 2018-Q4 | 2019-01-24 | 0.72 | 0.72 | 0.0% |
| 2019-Q1 | 2019-04-24 | 1.04 | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
In 2018, American Electric Power annual sales appreciated a nice 5.00% to $16,195.70 million dollars from $15,424.90 marked in 2017. By contrast, its earnings margin (compared to revenues) stayed steady to 11.88%, that is $1,923.80 million. To have an updated picture of the financial situation of American Electric Power, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual American Electric Power TTM sales up to March 2019 were $16,204.20 and earnings were $2,042.20 million USD. If we compare this TTM figures with the last reported annuality, we can review American Electric Power business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, stayed stable a neutral 0.05%. Regarding profit margin, American Electric Power remained steady 0.72% to 11.88%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $15,290 M | - | $1,480 M9.7% | - |
| 2014 | $17,020 M | 11.31% | $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 M | 5.00% | $1,924 M11.9% | 0.59% |
| TTM | $16,204 M | 0.05% | $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 earnings marked $572.80 M with a profit margin of 14.12%. Profit margin inched 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 remained steady a 0.21%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $3,570 M | - | $375 M10.5% | - |
| 2017-Q3 | $4,090 M | 14.57% | $545 M13.3% | 45.25% |
| 2017-Q4 | $3,810 M | -6.84% | $401 M10.5% | -26.44% |
| 2018-Q1 | $4,048 M | 6.24% | $454 M11.2% | 13.40% |
| 2018-Q2 | $4,013 M | -0.87% | $528 M13.2% | 16.29% |
| 2018-Q3 | $4,333 M | 7.97% | $578 M13.3% | 9.31% |
| 2018-Q4 | $3,801 M | -12.28% | $363 M9.6% | -37.08% |
| 2019-Q1 | $4,057 M | 6.73% | $573 M14.1% | 57.62% |
American Electric Power ownership
When you are planning to invest in shares of a company, it's always worth to review its ownership structure.American Electric Power shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.01% of all shares.
In case of American Electric Power stock, 77.70% 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 following table shows ownership data compared to other related stocks:
| AEP | |
|---|---|
| Market cap | $41.3 B |
| Total shares | 494.8 M |
| Float shares | 493.6 M |
| - Institutional holdings (%) | 77.7% |
| - Insider holdings (%) | 0.0% |
| Shares in short selling | 0.0% |
AEP summary
| Friday, March 27th, 2020 | |
|---|---|
| Open | $79.79 |
| Close | $83.40 |
| Day range | $79.13 - $86.59 |
| Previous close | $81.80 |
| Session gain | 1.96% |
| Average true range | $9.01 |
| 50d mov avg | $94.92 |
| 100d mov avg | $93.26 |
| 200d mov avg | $91.50 |
| Daily pattern | lb06a |
| Weekly pattern | lt06c |
American Electric Power performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared American Electric Power against in the following table:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| AEPAmerican Electric... | -10.85% | -10.17% | 2.62% |
American Electric Power competitors
Unfortunately, we could not find any public company that could be defined as American Electric Power competitor. This doesn't mean American Electric Power does not have any competitor in the market, it's just we could not detected it.Latest AEP stock news
- InvestorPlace3 Big Stock Charts for Thursday: Unum Group, Emerson Electric and American Electric PowerDecember 6, 2018
- InvestorPlace3 Big Stock Charts for Thursday: CBS, Ford and American Electric PowerNovember 8, 2018