American Electric Power (NYSE:AEP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “American Electric Power’s shares have lost wider than the industry it belongs to in last three months. American Electric operates in the spot market that faces the risk of volatile market prices, which in turn is likely to affect the company’s margins and revenues. Moreover, American Electric is exposed to environmental risks since its power plants produce large quantities of nitrogen, sulfur, mercury and carbon dioxide. However, American Electric’s continuous focus on augmenting earnings base has directed its capital expenditure toward regulated businesses. The company’s strong liquidity position enables it to reward shareholders via solid dividend payouts. Further, American Electric’s geographically-diversified operations have enabled it to outperform its broader industry over a year.”
A number of other equities analysts have also weighed in on AEP. SunTrust Banks set a $75.00 price objective on American Electric Power and gave the stock a “buy” rating in a research note on Monday. UBS Group began coverage on American Electric Power in a research note on Friday, February 2nd. They set a “buy” rating and a $76.00 price objective on the stock. Mizuho raised American Electric Power from a “neutral” rating to a “buy” rating in a research note on Wednesday, January 17th. Macquarie raised American Electric Power from a “neutral” rating to an “outperform” rating and boosted their price objective for the stock from $75.00 to $76.00 in a research note on Monday, January 22nd. Finally, Bank of America started coverage on American Electric Power in a research note on Tuesday, October 24th. They issued a “buy” rating and a $79.00 price target on the stock. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and eleven have assigned a buy rating to the stock. The stock has a consensus rating of “Buy” and an average target price of $75.21.
American Electric Power (NYSE:AEP) last released its quarterly earnings data on Thursday, January 25th. The utilities provider reported $0.85 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.81 by $0.04. The company had revenue of $3.80 billion for the quarter, compared to analyst estimates of $3.92 billion. American Electric Power had a return on equity of 10.05% and a net margin of 12.39%. The firm’s revenue for the quarter was up .0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.67 earnings per share. equities analysts forecast that American Electric Power will post 3.89 EPS for the current fiscal year.
Several institutional investors have recently made changes to their positions in AEP. Meeder Asset Management Inc. raised its holdings in shares of American Electric Power by 188.7% in the 3rd quarter. Meeder Asset Management Inc. now owns 5,333 shares of the utilities provider’s stock valued at $375,000 after buying an additional 3,486 shares during the period. Raymond James Trust N.A. raised its holdings in shares of American Electric Power by 3.4% in the 3rd quarter. Raymond James Trust N.A. now owns 25,915 shares of the utilities provider’s stock valued at $1,820,000 after buying an additional 861 shares during the period. California Public Employees Retirement System raised its holdings in shares of American Electric Power by 6.5% in the 3rd quarter. California Public Employees Retirement System now owns 1,234,413 shares of the utilities provider’s stock valued at $86,705,000 after buying an additional 75,260 shares during the period. W. E. Donoghue & Co. LLC purchased a new stake in shares of American Electric Power in the 2nd quarter valued at $2,148,000. Finally, Commonwealth Equity Services Inc raised its holdings in shares of American Electric Power by 1.2% in the 3rd quarter. Commonwealth Equity Services Inc now owns 207,463 shares of the utilities provider’s stock valued at $14,572,000 after buying an additional 2,385 shares during the period. 70.74% of the stock is currently owned by institutional investors and hedge funds.
COPYRIGHT VIOLATION WARNING: “American Electric Power (AEP) Downgraded to “Sell” at Zacks Investment Research” was first posted by American Banking News and is the property of of American Banking News. If you are viewing this story on another website, it was copied illegally and republished in violation of United States & international copyright & trademark law. The original version of this story can be accessed at https://www.americanbankingnews.com/2018/02/13/american-electric-power-aep-downgraded-to-sell-at-zacks-investment-research.html.
American Electric Power Company Profile
American Electric Power Company, Inc (AEP) is a public utility holding company that owns, directly or indirectly, all of the outstanding common stock of its public utility subsidiaries and varying percentages of other subsidiaries. The service areas of the Company’s public utility subsidiaries cover the states of Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for American Electric Power Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Electric Power and related companies with MarketBeat.com's FREE daily email newsletter.