The stock of American Electric Power Company Inc. (AEP) has gone up by 2.47% for the week, with a 5.79% rise in the past month and a 15.64% rise in the past quarter. The volatility ratio for the week is 2.19%, and the volatility levels for the past 30 days are 1.99% for AEP. The simple moving average for the past 20 days is 4.93% for AEP’s stock, with a 10.59% simple moving average for the past 200 days.
Is It Worth Investing in American Electric Power Company Inc. (NASDAQ: AEP) Right Now?
The price-to-earnings ratio for American Electric Power Company Inc. (NASDAQ: AEP) is above average at 16.51x. The 36-month beta value for AEP is also noteworthy at 0.52. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 4 rating it as “overweight,” 11 rating it as “hold,” and 0 rating it as “sell.”
The public float for AEP is 526.73M, and at present, short sellers hold a 1.60% of that float. The average trading volume of AEP on May 07, 2024 was 3.85M shares.
AEP) stock’s latest price update
American Electric Power Company Inc. (NASDAQ: AEP) has seen a rise in its stock price by 0.24 in relation to its previous close of 88.60. However, the company has experienced a 2.47% gain in its stock price over the last five trading sessions. Seeking Alpha reported 2024-04-30 that American Electric Power has reported strong earnings for 1Q24, driven by rate changes, favorable weather, and increased demand from data centers. AEP is investing billions in renewable energy and has a solid balance sheet, with a high FFO-to-debt ratio and ample liquidity. Analysts expect continued EPS growth for AEP, reinforcing its long-term outlook of 6-7% annual EPS growth.
Analysts’ Opinion of AEP
Many brokerage firms have already submitted their reports for AEP stocks, with UBS repeating the rating for AEP by listing it as a “Sell.” The predicted price for AEP in the upcoming period, according to UBS is $83 based on the research report published on March 11, 2024 of the current year 2024.
Ladenburg Thalmann, on the other hand, stated in their research note that they expect to see AEP reach a price target of $73, previously predicting the price at $75.50. The rating they have provided for AEP stocks is “Sell” according to the report published on March 08th, 2024.
Barclays gave a rating of “Equal Weight” to AEP, setting the target price at $83 in the report published on February 28th of the current year.
AEP Trading at 5.70% from the 50-Day Moving Average
After a stumble in the market that brought AEP to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.38% of loss for the given period.
Volatility was left at 1.99%, however, over the last 30 days, the volatility rate increased by 2.19%, as shares surge +5.39% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.71% upper at present.
During the last 5 trading sessions, AEP rose by +2.47%, which changed the moving average for the period of 200-days by +2.29% in comparison to the 20-day moving average, which settled at $84.86. In addition, American Electric Power Company Inc. saw 9.34% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for AEP
Current profitability levels for the company are sitting at:
- 0.21 for the present operating margin
- 0.62 for the gross margin
The net margin for American Electric Power Company Inc. stands at 0.15. The total capital return value is set at 0.05. Equity return is now at value 11.36, with 2.93 for asset returns.
Based on American Electric Power Company Inc. (AEP), the company’s capital structure generated 0.63 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 1.71. The interest coverage ratio of the stock is 4.21.
Currently, EBITDA for the company is 3.49 billion with net debt to EBITDA at 6.51. When we switch over and look at the enterprise to sales, we see a ratio of 4.7. The receivables turnover for the company is 7.71for trailing twelve months and the total asset turnover is 0.2. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.54.
Conclusion
In summary, American Electric Power Company Inc. (AEP) has had a better performance as of late. Analysts have bullish opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
