American Electric Power Company Inc. (NASDAQ:AEP) shares traded lower over the last trading session, losing -2.42% on 06/18/21. The shares fell to a low of $82.18 before closing at $82.35. Intraday shares traded counted 4.45 million, which was -54.54% lower than its 30-day average trading volume of 2.88M. AEP’s previous close was $84.39 while the outstanding shares total 499.75M. The firm has a beta of 0.27, a 12-month trailing P/E ratio of 18.37, and a growth ratio of 2.96. The stock’s Relative Strength Index (RSI) is 33.46, with weekly volatility at 1.50% and ATR at 1.31. The AEP stock’s 52-week price range has touched low of $74.80 and a $94.21 high.
Investors have identified the Utilities – Regulated Electric company American Electric Power Company Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $42.17 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
American Electric Power Company Inc. (AEP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AEP, the company has in raw cash 324.0 million on their books with 5.18 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 4.26 billion total, with 10.22 billion as their total liabilities.
AEP were able to record -1.61 billion as free cash flow during the 07/29/2021 quarter of the year, this saw their quarterly net cash flow reduce by -114.3 million. In cash movements, the company had a total of -117.2 million as operating cash flow.
Potential earnings growth for American Electric Power Company Inc. (AEP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/29/2021 quarter of the year, American Electric Power Company Inc. recorded a total of 4.28 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 12.46% coming in sequential stages and their sales for the 07/29/2021 quarter increasing by 15.66%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 3.47 billion trying to sell their products during the last quarter, with the result yielding a gross income of 810.3 million. This allows shareholders to hold on to 499.75M with the recently reported earning now reading 1.16 cents per share. This is a figure that compared to analyst’s prediction for their 07/29/2021 (1.15 cents a share).
Having a look at the company’s valuation, the company is expected to record 4.96 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AEP sounds very interesting.
Is the stock of AEP attractive?
In related news, President and CEO, Akins Nicholas K sold 2,100 shares of the company’s stock in a transaction that recorded on Jun 01. The sale was performed at an average price of 86.17, for a total value of 180,957. As the sale deal closes, the Executive Vice President, Patton Charles R. now sold 1,507 shares of the company’s stock, valued at 133,204. Also, EVP – Transmission, McCullough Mark C sold 2,062 shares of the company’s stock in a deal that was recorded on May 04. The shares were price at an average price of 88.39 per share, with a total market value of 182,260. Following this completion of acquisition, the Executive Vice President, Feinberg David Matthew now holds 2,539 shares of the company’s stock, valued at 224,422. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
12 out of 19 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on American Electric Power Company Inc.. 1 analysts has assigned a Sell rating on the AEP stock. The 12-month mean consensus price target for the company’s shares has been set at $97.10.