American Electric Power (NASDAQ:AEP) Reaches New 1-Year High on Strong Earnings

American Electric Power Company, Inc. (NASDAQ:AEP)’s share price hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $126.78 and last traded at $126.7910, with a volume of 1125322 shares traded. The stock had previously closed at $122.25.

The company reported $1.19 EPS for the quarter, topping the consensus estimate of $1.15 by $0.04. American Electric Power had a return on equity of 11.00% and a net margin of 17.23%.The firm had revenue of $5.32 billion for the quarter, compared to analyst estimates of $5.07 billion. During the same period last year, the company earned $1.24 earnings per share. American Electric Power’s revenue for the quarter was up 13.2% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.150-6.450 EPS.

American Electric Power Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be paid a $0.95 dividend. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $3.80 dividend on an annualized basis and a yield of 3.0%. American Electric Power’s dividend payout ratio (DPR) is currently 55.39%.

Key Headlines Impacting American Electric Power

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: Q4 beat and revenue growth — AEP reported operating EPS of $1.19 vs. consensus $1.15 and revenue rose ~13.2% year-over-year, signaling stronger demand and execution. American Electric Power beats Q4 estimates, reaffirms 2026 outlook
• Positive Sentiment: Expanded capital plan to meet surging electricity demand — management said it will expand its five‑year capex plan beyond $72B to support increased load, a growth signal that boosts future regulated investment and rate-base growth. AEP expands spending plan, beats profit estimates as electricity demand surges
• Positive Sentiment: Reaffirmed FY2026 guidance and long‑term growth metrics — AEP reiterated 2026 operating EPS guidance of $6.15–$6.45 and reaffirmed a long‑term operating earnings growth target (7%–9%), while reporting full‑year GAAP and operating results in its release and slide deck. AEP press release / slide deck
• Positive Sentiment: Load and project pipeline ramp — management now targets ~56 GW of incremental load by 2030 (up from 28 GW in October) and identified $5–8B of incremental investment opportunities beyond the existing plan — supports higher future regulated returns. AEP Reports Fourth Quarter and Full-Year 2025 Results
• Neutral Sentiment: Guidance vs. consensus — the FY2026 EPS range (6.150–6.450) roughly centers near analyst consensus (~6.33); supportive but not a material upside surprise to full‑year street expectations.
• Neutral Sentiment: Short‑interest data noisy/inconclusive — public short‑interest figures published this period show anomalous/zero values and do not provide a clear signal about bearish positioning.
• Negative Sentiment: Regulatory setback — FERC rejected AEP’s request to sell capacity in an upcoming auction, which could limit near‑term capacity market revenue or trading flexibility and is a near‑term negative catalyst. FERC rejects AEP request to sell capacity in upcoming auction

Analyst Upgrades and Downgrades

AEP has been the subject of a number of recent research reports. Williams Trading set a $137.00 target price on shares of American Electric Power in a research report on Thursday, December 18th. BMO Capital Markets increased their price target on American Electric Power from $123.00 to $125.00 and gave the company a “market perform” rating in a report on Tuesday, January 27th. Bank of America lowered American Electric Power from a “buy” rating to a “neutral” rating and lowered their price objective for the stock from $131.00 to $122.00 in a research note on Monday, January 12th. Citigroup lifted their price target on American Electric Power from $111.00 to $132.00 and gave the stock a “neutral” rating in a report on Friday, October 31st. Finally, Raymond James Financial reissued an “outperform” rating on shares of American Electric Power in a report on Thursday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $127.39.

Insider Activity

In related news, Director Benjamin G. S. Fowke III sold 5,000 shares of the stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $115.07, for a total transaction of $575,350.00. Following the transaction, the director owned 25,898 shares of the company’s stock, valued at approximately $2,980,082.86. This represents a 16.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.07% of the company’s stock.

Hedge Funds Weigh In On American Electric Power

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. PFG Investments LLC increased its stake in American Electric Power by 0.3% in the third quarter. PFG Investments LLC now owns 24,823 shares of the company’s stock valued at $2,793,000 after purchasing an additional 83 shares during the last quarter. Root Financial Partners LLC grew its position in shares of American Electric Power by 15.0% in the 4th quarter. Root Financial Partners LLC now owns 638 shares of the company’s stock valued at $74,000 after buying an additional 83 shares during the last quarter. Baron Silver Stevens Financial Advisors LLC grew its position in shares of American Electric Power by 4.1% in the 4th quarter. Baron Silver Stevens Financial Advisors LLC now owns 2,177 shares of the company’s stock valued at $251,000 after buying an additional 85 shares during the last quarter. Vectors Research Management LLC lifted its position in American Electric Power by 0.4% in the fourth quarter. Vectors Research Management LLC now owns 23,439 shares of the company’s stock valued at $2,703,000 after acquiring an additional 86 shares during the last quarter. Finally, Strategic Advisors LLC lifted its position in American Electric Power by 0.3% in the third quarter. Strategic Advisors LLC now owns 26,605 shares of the company’s stock valued at $2,993,000 after acquiring an additional 87 shares during the last quarter. Hedge funds and other institutional investors own 75.24% of the company’s stock.

American Electric Power Stock Performance

The firm has a fifty day simple moving average of $117.16 and a 200-day simple moving average of $115.72. The company has a quick ratio of 0.53, a current ratio of 0.69 and a debt-to-equity ratio of 1.41. The company has a market cap of $67.62 billion, a PE ratio of 18.48, a price-to-earnings-growth ratio of 2.89 and a beta of 0.62.

About American Electric Power

American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.