First Financial Bankshares Inc. has increased its stake in American Electric Power Company, Inc. (NASDAQ: AEP) by 0.7% during the third quarter of 2023. According to its recent Form 13F filing with the U.S. Securities and Exchange Commission, the bank now holds a total of 633,084 shares after acquiring an additional 4,145 shares. American Electric Power represents 1.5% of First Financial Bankshares’ investment portfolio, ranking as its 24th largest holding, with a market value of approximately $71,222,000.
Several institutional investors have also adjusted their positions in American Electric Power recently. Notably, Brighton Jones LLC expanded its holdings by 11.5% in the fourth quarter, owning 10,601 shares valued at $978,000 following a purchase of 1,095 additional shares. Acadian Asset Management LLC entered the market with a new position worth $320,000 in the first quarter, while Sivia Capital Partners LLC increased its position by 149.5% during the second quarter, now holding 4,891 shares valued at $507,000. Ethic Inc. and Leavell Investment Management Inc. also raised their stakes by 10.8% and 6.3%, respectively.
As of now, institutional investors own approximately 75.24% of American Electric Power’s shares.
Analyst Ratings and Stock Performance
Recent evaluations from research firms have indicated mixed sentiments regarding American Electric Power’s stock. Mizuho raised its target price from $123.00 to $130.00, maintaining a “neutral” rating. In contrast, Bank of America downgraded the stock from a “buy” to a “neutral” rating, adjusting its price target from $131.00 to $122.00.
In terms of performance, American Electric Power opened at $132.03 on Tuesday. The stock has demonstrated resilience, with a 50-day moving average of $119.32 and a 200-day moving average of $116.69. The company boasts a market capitalization of $71.41 billion and a P/E ratio of 19.71. Over the past year, shares have fluctuated between a low of $97.46 and a high of $132.78.
Recent Earnings and Dividend Announcement
American Electric Power recently reported its quarterly earnings, revealing an earnings per share (EPS) of $1.19 for the latest quarter, surpassing analysts’ expectations of $1.15 by $0.04. The firm recorded a revenue of $5.32 billion, exceeding forecasts of $5.07 billion and marking a 13.2% increase compared to the same quarter last year.
Looking ahead, American Electric Power has set its fiscal year 2026 guidance to an EPS range of $6.150 to $6.450. Analysts anticipate an EPS of $5.87 for the current fiscal year.
Additionally, the company announced a quarterly dividend of $0.95 per share, scheduled for payment on March 10, 2024, to investors who are on record as of February 10, 2024. This results in an annualized dividend of $3.80, yielding approximately 2.9%, with a payout ratio of 56.72%.
In related news, 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 $575,350. Following this transaction, Fowke holds 25,898 shares valued at approximately $2,980,082.86.
About American Electric Power
American Electric Power (NASDAQ: AEP), headquartered in Columbus, Ohio, is one of the largest investor-owned electric utilities in the United States. The company is involved in the generation, transmission, and distribution of electricity, operating a diverse portfolio that includes fossil-fuel, natural gas, nuclear, and hydropower facilities. AEP also focuses on integrating renewable energy sources into its operations, serving retail customers through its regulated subsidiaries while providing wholesale power and grid services across various regional markets.
