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How to buy American Electric Power Company shares
Own American Electric Power Company shares in just a few minutes. Share price changes are updated daily.
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American Electric Power Company, Inc (AEP) is a leading utilities-regulated electric business based in the US. American Electric Power Company is listed on the NASDAQ and employs 17,408 staff. All prices are listed in US Dollars.
How to buy shares in American Electric Power Company
- Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
- Open your account. You'll need your ID, bank details and national insurance number.
- Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code: AEP in this case.
- Research American Electric Power Company shares. The platform should provide the latest information available.
- Buy your American Electric Power Company shares. It's that simple.
What's in this guide?
- Can I buy shares in American Electric Power Company?
- American Electric Power Company shares summary
- Compare share dealing platforms
- Is American Electric Power Company stock a buy or sell?
- Can I short American Electric Power Company shares?
- Is American Electric Power Company suitable for ethical investing?
- Are American Electric Power Company shares over-valued?
- American Electric Power Company's financials
- How volatile are American Electric Power Company shares?
- Does American Electric Power Company pay a dividend?
- Other common questions
American Electric Power Company share price
Use our graph to track the performance of AEP stocks over time.American Electric Power Company shares at a glance
Information last updated 2021-01-23.
| 52-week range | $63.5061 - $102.014 |
|---|---|
| 50-day moving average | $81.5645 |
| 200-day moving average | $84.1858 |
| Wall St. target price | $94.28 |
| PE ratio | 21.2532 |
| Dividend yield | $2.96 (3.61%) |
| Earnings per share (TTM) | $3.862 |
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Is it a good time to buy American Electric Power Company stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is American Electric Power Company under- or over-valued?
Valuing American Electric Power Company stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of American Electric Power Company's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
American Electric Power Company's P/E ratio
American Electric Power Company's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 21x. In other words, American Electric Power Company shares trade at around 21x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, American Electric Power Company's P/E ratio is best considered in relation to those of others within the utilities-regulated electric industry or those of similar companies.
- Duke Energy Corporation (DUK.US): 33.09
- Ameren Corporation (AEE.US): 21.29
- FirstEnergy (FE.US): 23.32
- NextEra Energy (NEE.US): 42.53
American Electric Power Company's PEG ratio
American Electric Power Company's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.697. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into American Electric Power Company's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider American Electric Power Company's PEG ratio in relation to those of similar companies.
- Duke Energy Corporation (DUK.US): 4.18
- Ameren Corporation (AEE.US): 2.57
- FirstEnergy (FE.US): 3.29
- NextEra Energy (NEE.US): 3.22
American Electric Power Company's EBITDA
American Electric Power Company's EBITDA (earnings before interest, taxes, depreciation and amortisation) is a whopping $5.4 billion.
The EBITDA is a measure of a American Electric Power Company's overall financial performance and is widely used to measure a its profitability.
To put American Electric Power Company's EBITDA into context you can compare it against that of similar companies.
- Duke Energy Corporation (DUK.US): USD$11 billion
- Ameren Corporation (AEE.US): USD$2.4 billion
- FirstEnergy (FE.US): USD$2.4 billion
- NextEra Energy (NEE.US): USD$9.6 billion
American Electric Power Company financials
| Revenue TTM | $14.9 billion |
|---|---|
| Operating margin TTM | 20.02% |
| Gross profit TTM | $6.5 billion |
| Return on assets TTM | 2.45% |
| Return on equity TTM | 9.41% |
| Profit margin | 12.85% |
| Book value | $41.032 |
| Market capitalisation | $40.7 billion |
TTM: trailing 12 months
How to short and sell American Electric Power Company shares
- Create a CFD or spread betting account.
- Search for the stock code. E.g. "AEP.US"
- Choose your position size.
- Select "sell" rather than "buy".
- Confirm your position and keep tabs on it. You may wish to set limits on your position.
There are currently 7.9 million American Electric Power Company shares held short by investors – that's known as American Electric Power Company's "short interest". This figure is 30.3% up from 6.1 million last month.
There are a few different ways that this level of interest in shorting American Electric Power Company shares can be evaluated.
American Electric Power Company's "short interest ratio" (SIR)
American Electric Power Company's "short interest ratio" (SIR) is the quantity of American Electric Power Company shares currently shorted divided by the average quantity of American Electric Power Company shares traded daily (recently around 2.9 million). American Electric Power Company's SIR currently stands at 2.76. In other words for every 100,000 American Electric Power Company shares traded daily on the market, roughly 2760 shares are currently held short.
To gain some more context, you can compare American Electric Power Company's short interest ratio against those of similar companies.
- Duke Energy Corporation (DUK.US): 2.15
- Ameren Corporation (AEE.US): 4.22
- FirstEnergy (FE.US): 2.88
- NextEra Energy (NEE.US): 3.46
However American Electric Power Company's short interest can also be evaluated against the total number of American Electric Power Company shares, or, against the total number of tradable American Electric Power Company shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case American Electric Power Company's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 American Electric Power Company shares in existence, roughly 20 shares are currently held short) or 0.016% of the tradable shares (for every 100,000 tradable American Electric Power Company shares, roughly 16 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against American Electric Power Company.
Find out more about how you can short American Electric Power Company stock.
American Electric Power Company's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like American Electric Power Company.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
American Electric Power Company's total ESG risk score
Total ESG risk: 33.5
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and American Electric Power Company's overall score of 33.5 (as at 01/01/2019) is pretty weak – landing it in it in the 73rd percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like American Electric Power Company is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare American Electric Power Company's total ESG risk score against those of similar companies.
- Duke Energy Corporation (DUK.US): 31.98
- Ameren Corporation (AEE.US): 37.12
- FirstEnergy (FE.US): 41.25
- NextEra Energy (NEE.US): 28.95
American Electric Power Company's environmental score
Environmental score: 18.83/100
American Electric Power Company's environmental score of 18.83 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that American Electric Power Company is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
American Electric Power Company's social score
Social score: 9.53/100
American Electric Power Company's social score of 9.53 puts it squarely in the 1st percentile of companies rated in the same sector. This could suggest that American Electric Power Company is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
American Electric Power Company's governance score
Governance score: 4.15/100
American Electric Power Company's governance score puts it squarely in the 1st percentile of companies rated in the same sector. That could suggest that American Electric Power Company is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
American Electric Power Company's controversy score
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, American Electric Power Company scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that American Electric Power Company has, for the most part, managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
- Duke Energy Corporation (DUK.US): 3
- Ameren Corporation (AEE.US): 2
- FirstEnergy (FE.US): 3
- NextEra Energy (NEE.US): 2
Environmental, social, and governance (ESG) summary
American Electric Power Company, Inc was last rated for ESG on: 2019-01-01.
| Total ESG score | 33.5 |
|---|---|
| Total ESG percentile | 72.84 |
| Environmental score | 18.83 |
| Environmental score percentile | 1 |
| Social score | 9.53 |
| Social score percentile | 1 |
| Governance score | 4.15 |
| Governance score percentile | 1 |
| Level of controversy | 2 |
American Electric Power Company share dividends
Dividend payout ratio: 69.06% of net profits
Recently American Electric Power Company has paid out, on average, around 69.06% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.61% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), American Electric Power Company shareholders could enjoy a 3.61% return on their shares, in the form of dividend payments. In American Electric Power Company's case, that would currently equate to about $2.96 per share.
American Electric Power Company's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
American Electric Power Company's most recent dividend payout was on 10 March 2021. The latest dividend was paid out to all shareholders who bought their shares by 9 February 2021 (the "ex-dividend date").
American Electric Power Company's dividend payout ratio is perhaps best considered in relation to those of similar companies.
- Duke Energy Corporation (DUK.US): 76.80%
- Ameren Corporation (AEE.US): 58.48%
- FirstEnergy (FE.US): 59.54%
- NextEra Energy (NEE.US): 61.61%
American Electric Power Company share price volatility
Over the last 12 months, American Electric Power Company's shares have ranged in value from as little as $63.5061 up to $102.014. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while American Electric Power Company's is 0.2143. This would suggest that American Electric Power Company's shares are less volatile than average (for this exchange).
To put American Electric Power Company's beta into context you can compare it against those of similar companies.
- Duke Energy Corporation (DUK.US): 0.2222
- Ameren Corporation (AEE.US): 0.2059
- FirstEnergy (FE.US): 0.187
- NextEra Energy (NEE.US): 0.1612
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American Electric Power Company overview
American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, natural gas, nuclear, and hydroelectric, as well as solar, wind, and other energy sources. It also supplies and markets electric power at wholesale to other electric utility companies, rural electric cooperatives, municipalities, and other market participants. The company owns, leases, or controls approximately 4,004 railcars, 468 barges, 8 towboats, and a coal handling terminal with approximately 18 million tons of annual capacity. American Electric Power Company, Inc. was founded in 1906 and is headquartered in Columbus, Ohio.
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