American Electric Power Company, Inc. (NASDAQ: AEP) experienced a notable decline in short interest during December 2023. As of December 31, short interest totaled 18,048,525 shares, reflecting a significant decrease of 20.3% from the December 15 total of 22,650,297 shares. With an average daily trading volume of 3,432,010 shares, the current short-interest ratio stands at 5.3 days, indicating that approximately 3.4% of the company’s shares are short sold.
Insider Transactions and Institutional Investments
In related news, Director Benjamin G. S. Fowke III sold 5,000 shares of the company’s stock on December 12. The shares were sold at an average price of $115.07, bringing the total value of the transaction to $575,350. Following this sale, Fowke holds 25,898 shares in American Electric Power, valued at around $2,980,082.86. This transaction represents a 16.18% reduction in his ownership stake and was disclosed in a filing with the U.S. Securities and Exchange Commission.
Several institutional investors have recently adjusted their positions in American Electric Power. Vanguard Group Inc. increased its stake by 0.4% in the second quarter, acquiring an additional 197,998 shares, bringing its total to 52,467,779 shares valued at approximately $5.44 billion. State Street Corp. boosted its holdings by 1.4% in the third quarter, now owning 28,922,911 shares worth nearly $3.25 billion. Other significant adjustments include Geode Capital Management LLC, which raised its position by 2.2%, and Invesco Ltd., which increased its holdings by 5.9%. Overall, institutional investors now own 75.24% of American Electric Power.
Stock Performance and Financial Outlook
On January 1, 2024, American Electric Power’s stock opened at $119.96. The company’s 50-day simple moving average is $117.93, while its 200-day moving average is $114.10. American Electric Power maintains a debt-to-equity ratio of 1.41, a current ratio of 0.69, and a quick ratio of 0.53. The stock has fluctuated between a one-year low of $96.80 and a high of $124.80, with a market capitalization of $64.07 billion and a price-to-earnings (P/E) ratio of 17.49.
The company’s quarterly earnings report, released on October 29, 2023, indicated earnings per share (EPS) of $1.80, slightly missing the consensus estimate of $1.81 by $0.01. Revenue for the quarter reached $6.01 billion, surpassing expectations of $5.65 billion. Compared to the same quarter last year, revenue increased by 10.9%, although EPS declined from $1.85.
Looking ahead, American Electric Power has provided guidance for fiscal year 2025, projecting EPS between $5.850 and $5.95. Analysts estimate the company will report $5.87 EPS for the current fiscal year.
Dividend Announcement
American Electric Power has also announced a quarterly dividend of $0.95, paid on December 10, 2023, to shareholders of record as of November 10. This marks an increase from the previous quarterly dividend of $0.93, translating to an annualized dividend of $3.80 and a yield of 3.2%. The company’s payout ratio currently stands at 55.39%.
American Electric Power, headquartered in Columbus, Ohio, is a major investor-owned electric utility engaged in the generation, transmission, and distribution of electricity. The firm operates a diverse portfolio of power plants and an extensive high-voltage transmission network, serving retail customers through regulated utility subsidiaries while providing wholesale power and grid services across various regional markets in the United States. The company continues to diversify its energy mix by integrating renewable resources alongside traditional generation assets.
