The Teacher Retirement System of Texas has increased its holdings in American Electric Power Company, Inc. (NASDAQ:AEP) by 10.7% during the third quarter of 2023. According to the latest filing with the Securities and Exchange Commission (SEC), the retirement fund now owns 103,587 shares of the company’s stock, valued at approximately $11,654,000 after acquiring an additional 10,020 shares in the quarter.
In addition to the Teacher Retirement System, several other institutional investors have adjusted their positions in American Electric Power. Brighton Jones LLC expanded its stake by 11.5% in the fourth quarter, bringing its total to 10,601 shares valued at $978,000. Acadian Asset Management LLC acquired a new stake worth around $320,000 in the first quarter. Meanwhile, Sivia Capital Partners LLC significantly boosted its holdings by 149.5% during the second quarter, now owning 4,891 shares valued at $507,000.
Perigon Wealth Management LLC and American National Bank & Trust also increased their positions, holding 13,591 and 2,257 shares respectively, valued at $1,410,000 and $234,000. Collectively, institutional investors own 75.24% of American Electric Power’s stock.
Analyst Ratings and Stock Performance
American Electric Power has been the focus of various recent research reports. Scotiabank raised its price target from $121.00 to $131.00, maintaining a “sector perform” rating. Meanwhile, LADENBURG THALM/SH lowered its price target from $124.50 to $117.50, assigning a “neutral” rating. On October 30, Raymond James Financial reaffirmed an “outperform” rating, while TD Cowen upgraded its rating to “strong-buy.”
One investment analyst has rated the stock as a Strong Buy, while nine others assigned a Buy rating, and nine rated it as Hold. The consensus target price stands at $127.29, according to MarketBeat.com.
As of October 29, 2023, American Electric Power opened at $116.63. The company reported earnings per share (EPS) of $1.80 for the quarter, slightly missing the consensus estimate of $1.81. Total revenue for the quarter reached $6.01 billion, surpassing expectations of $5.65 billion.
Dividends and Financial Outlook
American Electric Power announced a quarterly dividend of $0.95, to be paid on March 10, 2025. Shareholders of record as of February 10, 2025 will receive this dividend, which translates to an annualized $3.80 with a yield of 3.3%. The company’s dividend payout ratio currently stands at 55.39%.
The firm has set its fiscal year 2025 guidance at $5.850 to $5.95 EPS, with analysts predicting an average EPS of 5.87 for the current year.
In insider trading news, Director Benjamin G. S. Fowke III sold 5,000 shares at an average price of $115.07, totaling $575,350.00. Following the sale, Fowke holds 25,898 shares valued at approximately $2,980,082.86, reflecting a 16.18% decrease in his position.
American Electric Power, headquartered in Columbus, Ohio, operates as a major investor-owned electric utility. The company focuses on the generation, transmission, and distribution of electricity, with a diverse portfolio of power plants and a high-voltage transmission network supporting retail customers and wholesale power markets across the United States.
