American Electric Power (NASDAQ:AEP) Reaches New 52-Week High Following Strong Earnings

American Electric Power Company, Inc. (NASDAQ:AEP)’s stock price reached a new 52-week high during 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 trading hands. The stock had previously closed at $122.25.

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

American Electric Power Dividend Announcement

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

Key American Electric Power News

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

A number of research firms recently weighed in on AEP. Barclays upped their price target on American Electric Power from $117.00 to $121.00 and gave the stock an “equal weight” rating in a research note on Thursday, January 22nd. Wells Fargo & Company lifted their price target on American Electric Power from $139.00 to $140.00 and gave the stock an “overweight” rating in a report on Tuesday, January 20th. BMO Capital Markets upped their price objective on American Electric Power from $123.00 to $125.00 and gave the company a “market perform” rating in a research note on Tuesday, January 27th. JPMorgan Chase & Co. lifted their target price on American Electric Power from $121.00 to $125.00 and gave the stock a “neutral” rating in a research note on Friday, December 12th. Finally, LADENBURG THALM/SH SH cut their price target on shares of American Electric Power from $124.50 to $117.50 and set a “neutral” rating on the stock in a report on Friday, January 23rd. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $127.39.

Insiders Place Their Bets

In related news, Director Benjamin G. S. Fowke III sold 5,000 shares of the stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $115.07, for a total value of $575,350.00. Following the transaction, the director owned 25,898 shares of the company’s stock, valued at $2,980,082.86. This represents a 16.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.07% of the stock is owned by insiders.

Hedge Funds Weigh In On American Electric Power

A number of large investors have recently bought and sold shares of AEP. Brighton Jones LLC raised its position in shares of American Electric Power by 11.5% in the 4th quarter. Brighton Jones LLC now owns 10,601 shares of the company’s stock valued at $978,000 after purchasing an additional 1,095 shares during the last quarter. Acadian Asset Management LLC purchased a new stake in American Electric Power during the 1st quarter valued at about $320,000. Sivia Capital Partners LLC increased its holdings in shares of American Electric Power by 149.5% in the second quarter. Sivia Capital Partners LLC now owns 4,891 shares of the company’s stock valued at $507,000 after purchasing an additional 2,931 shares during the period. Vontobel Holding Ltd. purchased a new position in shares of American Electric Power in the second quarter worth about $314,000. Finally, CWM LLC boosted its position in American Electric Power by 22.8% in the second quarter. CWM LLC now owns 29,062 shares of the company’s stock valued at $3,015,000 after buying an additional 5,395 shares during the last quarter. Institutional investors own 75.24% of the company’s stock.

American Electric Power Stock Performance

The firm’s 50 day simple moving average is $117.16 and its 200 day simple moving average is $115.72. The firm has a market capitalization of $67.62 billion, a price-to-earnings ratio of 18.48, a PEG ratio of 2.89 and a beta of 0.62. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.53 and a current ratio of 0.69.

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.