American Electric Power Stock Today

AEP Stock  USD 79.51  1.40  1.73%   

Performance

3 of 100

 
Weak
 
Strong
Insignificant

Odds Of Distress

Less than 41

 
High
 
Low
Below Average
American Electric is selling at 79.51 as of the 17th of April 2024; that is -1.73% down since the beginning of the trading day. The stock's last reported lowest price was 79.16. American Electric has about a 41 percent probability of financial distress in the next few years of operation and did not have a very good performance during the last 90 trading days. Equity ratings for American Electric Power are calculated daily based on our scoring framework. The performance scores are derived for the period starting the 28th of April 2022 and ending today, the 17th of April 2024. Click here to learn more.
Business Domain
Utilities
IPO Date
2nd of January 1970
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. American Electric Power Company, Inc. The company has 526.59 M outstanding shares of which 9.35 M shares are presently shorted by investors with about 2.11 days to cover. More on American Electric Power

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American Stock Highlights

Most reasonable investors view market volatility as an opportunity to invest at a favorable price or to sell short against a bearish trend. American Electric's investment highlights are automatically generated signals that are significant enough to either complement your investing judgment regarding American Electric or challenge it. These highlights can help you better understand the position you are entering and avoid costly mistakes.
ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary, American Electric's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American Electric's managers, analysts, and investors.
Environment Score
Governance Score
Social Score
ChairmanNicholas Akins
Thematic IdeaUtilities (View all Themes)
Old Names[Atlas Engineered Products Ltd, American Electric Power Company Inc.]
Business ConcentrationElectric Utilities, Utilities - Regulated Electric, Utilities, PHLX Utility, NASDAQ 100 Pre, SP 500 Index, Dow Jones Utility, Nasdaq 100, Dow Jones Composite, NASDAQ Composite, Utilities, Electric Utilities, Utilities—Regulated Electric, Utilities (View all Sectors)
Excise Tax ActivitiesCoalNuclear
Average Analyst Recommendation
Analysts covering American Electric report their recommendations after researching American Electric's financial statements, talking to executives and customers, or listening in on American Electric's conference calls. The current trade recommendation is based on an ongoing consensus estimate among financial analysts covering American Electric Power. The American consensus assessment is calculated by taking the average forecast from all of the analysts covering American Electric.
Financial Strength
Based on the measurements of operating efficiency obtained from American Electric's historical financial statements, American Electric Power may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter. Financial strength of American Electric Power is based on its profitability, leverage, liquidity, source of funds, and operating efficiency.
Current ValueLast YearChange From Last Year 10 Year Trend
Return On Assets0.01950.0228
Fairly Down
Slightly volatile
Asset Turnover0.360.1963
Way Up
Slightly volatile
Gross Profit Margin0.660.6535
Slightly Up
Pretty Stable
Net Debt45.4 B43.3 B
Sufficiently Up
Slightly volatile
Total Current Liabilities8.6 B11.6 B
Way Down
Slightly volatile
Non Current Liabilities Total30.3 B59.8 B
Way Down
Slightly volatile
Total Assets54.5 B96.7 B
Way Down
Slightly volatile
Total Current Assets5.6 B6.1 B
Significantly Down
Slightly volatile
Total Cash From Operating Activities3.3 BB
Way Down
Slightly volatile
American Electric's financial strength is of vital concern to both outside investors and internal stakeholders. Efficiency and cost control are keys to American Electric's success, along with its ability to generate sufficient cash flow to pay bills, repay debt, and make a consistent year-to-year profit.
American Electric's bond ratings measure its overall creditworthiness, which in many ways corresponds to the cost of borrowing for an issuer. These ratings assign a letter grade to all of American Electric's outstanding corporate bonds that indicate their credit quality. We use reports published by private self-sufficient rating services such as Standard & Poor's or Fitch Ratings Inc. to evaluate a bond issuer's financial strength or its ability to pay a bond's principal and interest.
Financial leverage usually refers to the use of borrowed funds to amplify returns from an investment. In general, analyzing the relationship between debt to total assets helps investors to understand American Electric's financial leverage. It provides some insight into what part of American Electric's total assets is financed by creditors.
By using current balance sheet information, investors can analyze the liability, assets, and equity on American Electric's books and decide whether to invest or hold. Statistics such as return on equity (ROE), debt to equity (D/E) help investors determine how American Electric deploys its capital and how much of that capital is borrowed.
Liquidity
American Electric cash flow analysis is essential to understand how it generates and spends money over a specific period. It can also help you figure out where your money is going and how much cash you have available at a given moment. The company has 43.61 B in debt with debt to equity (D/E) ratio of 1.57, which is OK given its current industry classification. American Electric Power has a current ratio of 0.77, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist American Electric until it has trouble settling it off, either with new capital or with free cash flow. So, American Electric's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like American Electric Power sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for American to invest in growth at high rates of return. When we think about American Electric's use of debt, we should always consider it together with cash and equity.

Other Non Cash Items

280.47 Million
American Electric Power (AEP) is traded on NASDAQ Exchange in USA. It is located in 1 Riverside Plaza, Columbus, OH, United States, 43215-2373 and employs 17,250 people. American Electric is listed under Electric Utilities category by Fama And French industry classification. The company currently falls under 'Large-Cap' category with a total capitalization of 42.61 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate American Electric's market, we take the total number of its shares issued and multiply it by American Electric's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities. American Electric Power runs under Electric Utilities sector within Utilities industry. The entity has 526.59 M outstanding shares of which 9.35 M shares are presently shorted by investors with about 2.11 days to cover. American Electric Power has about 724.4 M in cash with 5.01 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.41.
Check American Electric Probability Of Bankruptcy
Ownership Allocation
American Electric holds a total of 526.59 Million outstanding shares. The majority of American Electric Power outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in American Electric Power to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in American Electric. Please pay attention to any change in the institutional holdings of American Electric Power as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Check American Ownership Details

American Stock Price Odds Analysis

In regard to a normal probability distribution, the odds of American Electric jumping above the current price in 90 days from now is about 70.57%. The American Electric Power probability density function shows the probability of American Electric stock to fall within a particular range of prices over 90 days. Considering the 90-day investment horizon American Electric has a beta of 0.8684. This suggests American Electric Power market returns are sensible to returns on the market. As the market goes up or down, American Electric is expected to follow. Additionally, american Electric Power has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite.
  Odds Below 79.51HorizonTargetOdds Above 79.51
29.16%90 days
 79.51 
70.57%
Based on a normal probability distribution, the odds of American Electric to move above the current price in 90 days from now is about 70.57 (This American Electric Power probability density function shows the probability of American Stock to fall within a particular range of prices over 90 days) .

American Stock Institutional Holders

Institutional Holdings refers to the ownership stake in American Electric that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of American Electric's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing American Electric's value.
InstituionRecorded OnShares
Bank Of America Corp2023-12-31
6.2 M
Massachusetts Financial Services Company2023-12-31
M
Franklin Resources Inc2023-12-31
5.6 M
Legal & General Group Plc2023-12-31
5.4 M
Ameriprise Financial Inc2023-12-31
5.3 M
Northern Trust Corp2023-12-31
4.9 M
Alliancebernstein L.p.2023-12-31
4.7 M
Federated Hermes Inc2023-12-31
4.7 M
Wells Fargo & Co2023-12-31
4.6 M
Vanguard Group Inc2023-12-31
49.2 M
Blackrock Inc2023-12-31
45 M
View American Electric Diagnostics

American Electric Historical Income Statement

American Electric Power Income Statement is one of the three primary financial statements used for reporting American's overall financial performance over a current year or for a given accounting period. An Income Statement sometimes referred to as the statement of American Electric Power revenue and expense. American Electric Income Statement primarily focuses on the company's revenues and expenses during a particular period.
At this time, American Electric's EBITDA is relatively stable compared to the past year. As of 04/17/2024, Cost Of Revenue is likely to grow to about 7.5 B, while Gross Profit is likely to drop slightly above 8.1 B. View More Fundamentals

American Stock Against Markets

Picking the right benchmark for American Electric stock is fundamental to making educated investment choices. Many naive investors compare their positions with the S&P 500 or with the Nasdaq. But these benchmarks are not all-inclusive and generally should be used only for large-capitalization equities or stock offerings from large companies. When the price of a selected benchmark declines in a down market, there may be an uptick in American Electric stock price where buyers come in believing the asset is cheap. The opposite is true when the market is bullish; so, accurately picking the benchmark for American Electric is critical whether you are bullish or bearish towards American Electric Power at a given time. Please also check how American Electric's historical prices are related to one of the top price index indicators.

Be your own money manager

Our tools can tell you how much better you can do entering a position in American Electric without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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American Electric Corporate Directors

American Electric corporate directors refer to members of an American Electric board of directors. The board of directors generally takes responsibility for the American Electric's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of American Electric's board members must vote for the resolution. The American Electric board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Sara TuckerIndependent DirectorProfile
Ralph CrosbyIndependent DirectorProfile
Lionel NowellIndependent DirectorProfile
Thomas HoaglinLead Independent DirectorProfile

How to buy American Stock?

Before investing in American Electric, you must ensure you fully understand your financial goals and how diversified (or not) your overall investments are now. Then, after you clearly understand your investment objectives, consider investing in American Electric. To buy American Electric stock, you can follow these steps:
  • Choose a brokerage firm: You need to select a brokerage firm to buy shares of American Electric. Some popular options include Charles Schwab, Fidelity, TD Ameritrade, and Robinhood.
  • Open an account: Once you have chosen a brokerage firm, you will need to open an account. You will be required to provide personal information, such as your name, address, and Social Security number.
  • Fund your account: You will need to deposit funds into your brokerage account to purchase American Electric stock. You can do this by transferring funds from your bank account or other investment accounts.
  • Place your order: Once you have located American Electric Power stock in your brokerage account, you can place your order to buy it. You will need to specify the number of shares you want to buy and the price you are willing to pay.
  • Monitor your investment: After you have purchased American Electric Power stock, you should monitor your investment to track its performance and make informed decisions about buying, selling, or holding the stock
It's important to note that investing in stocks, such as American Electric Power, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember various factors, including economic indicators, change in net worth, political events, company-specific news, and investor sentiment, can influence the stock market. These factors can cause fluctuations in stock prices and lead to market volatility affecting your buy or sell decision. However, volatility can also present opportunities for investors to make gains by buying stocks when prices are low and selling when they are high. It's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. For more information on how to buy American Stock please use our How to Invest in American Electric guide.

Already Invested in American Electric Power?

The danger of trading American Electric Power is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of American Electric is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than American Electric. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Electric Power is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether American Electric Power is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if American Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about American Electric Power Stock. Highlighted below are key reports to facilitate an investment decision about American Electric Power Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Electric Power. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the American Electric Power information on this page should be used as a complementary analysis to other American Electric's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running American Electric's price analysis, check to measure American Electric's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Electric is operating at the current time. Most of American Electric's value examination focuses on studying past and present price action to predict the probability of American Electric's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Electric's price. Additionally, you may evaluate how the addition of American Electric to your portfolios can decrease your overall portfolio volatility.
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Is American Electric's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Electric. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Electric listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.15)
Dividend Share
3.37
Earnings Share
4.17
Revenue Per Share
36.582
Quarterly Revenue Growth
(0.06)
The market value of American Electric Power is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Electric's value that differs from its market value or its book value, called intrinsic value, which is American Electric's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Electric's market value can be influenced by many factors that don't directly affect American Electric's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Electric's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Electric is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Electric's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.