First Financial Bankshares Inc. has increased its investment in American Electric Power Company, Inc. (NASDAQ: AEP) by 0.7% during the third quarter of 2023. According to the latest Form 13F filing with the U.S. Securities and Exchange Commission (SEC), the bank now owns a total of 633,084 shares following the acquisition of an additional 4,145 shares during this period. As of the end of the most recent quarter, American Electric Power accounted for 1.5% of First Financial Bankshares Inc.’s investment portfolio, ranking as its 24th largest holding.
At the end of the third quarter, First Financial Bankshares held approximately 0.12% of American Electric Power’s total outstanding shares, valued at around $71.22 million. This strategic investment reflects a growing interest among institutional investors in the utility sector, particularly in companies like American Electric Power, which continue to show robust performance.
Several other large investors have also adjusted their positions in American Electric Power. For example, Brighton Jones LLC increased its stake by 11.5% in the fourth quarter, bringing its total to 10,601 shares, valued at $978,000 after purchasing an additional 1,095 shares. Similarly, Acadian Asset Management LLC entered a new position valued at $320,000 during the first quarter, while Sivia Capital Partners LLC grew its holdings by an impressive 149.5% in the second quarter, owning 4,891 shares valued at $507,000.
Ethic Inc. and Leavell Investment Management Inc. have also increased their stakes, with Ethic raising its position by 10.8% to 12,244 shares worth $1.25 million, and Leavell adding 241 shares to reach 4,045 shares valued at approximately $420,000. Overall, institutional investors collectively own 75.24% of American Electric Power’s stock.
Analyst Ratings and Stock Performance
Recent analyst ratings have provided mixed insights regarding American Electric Power’s future. Mizuho recently raised its target price for the stock from $123.00 to $130.00 while maintaining a “neutral” rating. Conversely, Bank of America downgraded the stock from a “buy” to a “neutral” rating, adjusting its price objective from $131.00 to $122.00. Weiss Ratings reiterated a “buy” rating, while BMO Capital Markets increased its target price from $125.00 to $136.00.
As of the latest trading session, NASDAQ:AEP opened at $132.03. The stock has demonstrated a strong performance, with a 50-day moving average price of $119.32 and a 200-day moving average of $116.69. The company boasts a market capitalization of $71.41 billion, a price-to-earnings (P/E) ratio of 19.71, and a P/E growth (P/E/G) ratio of 3.04. Over the past year, the stock has fluctuated between a low of $97.46 and a high of $132.78.
Financial Highlights and Future Guidance
American Electric Power recently reported its quarterly earnings, revealing an earnings per share (EPS) of $1.19, surpassing analysts’ expectations of $1.15 by $0.04. The company posted revenues of $5.32 billion, exceeding anticipated figures of $5.07 billion, and marking a 13.2% increase compared to the same quarter last year. The firm has set its fiscal year 2026 guidance at an EPS range of $6.150-$6.450, with analysts projecting an EPS of $5.87 for the current fiscal year.
In addition, American Electric Power has announced a quarterly dividend of $0.95 per share, payable on March 10, 2024, to investors of record as of February 10, 2024. This dividend represents an annualized payout of $3.80, corresponding to a dividend yield of 2.9% and a payout ratio of 56.72%.
In a notable insider transaction, Director Benjamin G. S. Fowke III sold 5,000 shares of American Electric Power on December 12, 2023, at an average price of $115.07, totaling approximately $575,350. Following this transaction, Fowke retains 25,898 shares valued at around $2.98 million.
American Electric Power Company, Inc., headquartered in Columbus, Ohio, is a significant player in the electric utility sector, focusing on the generation, transmission, and distribution of electricity. The company operates a diverse portfolio of power plants, including fossil-fuel, natural gas, nuclear, and hydropower facilities, while also integrating renewable energy sources into its operations.
