FMR Adds $162M in American Electric Power Company, Inc. ($AEP)
FMR has raised its position in American Electric Power by nearly 24%, reflecting confidence in the utility giant.
Key Points
- FMR boosted its stake in American Electric Power by 23.9%, adding 1,173,210 shares to hold a total of 6,079,338 shares valued at $776.3 million.
- American Electric Power, trading at $127.69, has a market cap of $69.48 billion, a P/E ratio of 18.89, and a dividend yield of 2.93%.
- Analysts from firms like Truist Securities and TD Cowen maintain a 'buy' rating, with price targets up to $148.
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FMR has significantly increased its stake in American Electric Power Company, Inc. (NasdaqGS: AEP), as revealed in its latest Form 13F filing with the SEC. The investment firm added 1,173,210 shares during the reporting period, boosting its holdings by 23.9% to a total of 6,079,338 shares. The value of this position is approximately $776.3 million.
FMR vs. the S&P 500
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What Changed in FMR's American Electric Power Position
FMR's recent filing shows a strong vote of confidence in American Electric Power. The firm previously held 4,906,128 shares and increased its holdings by 1,173,210 shares. This change represents a 23.9% increase, bringing the total to 6,079,338 shares valued at $776.3 million.
Other Institutional Activity in American Electric Power
Several other institutional investors also adjusted their positions in American Electric Power. BlackRock, Inc. increased its holdings by 1,536,746 shares, ending with a substantial 47,797,729 shares worth about $6.27 billion. Vanguard Capital Management LLC added a new position with 35,138,422 shares, valued at $4.61 billion. Meanwhile, State Street Corp slightly decreased its stake by 149,640 shares, holding 30,288,136 shares valued at $3.97 billion. GQG Partners LLC reduced its holdings by 1,876,988 shares, now holding 15,025,884 shares worth $1.97 billion.
American Electric Power Company, Inc. Stock Up 12.6%
Shares of American Electric Power traded at $127.69. The company boasts a market cap of $69.48 billion and a P/E ratio of 18.89. The stock has a 52-week low of $101.15 and a high of $139.44, with a 50-day moving average of $131.07 and a 200-day moving average of $122.89. The firm has a beta of 0.518, indicating lower volatility compared to the market.
$AEP stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
American Electric Power reported revenue of $22.43 billion, reflecting a growth rate of 10.2%. The company's net margin stands at 16.29%, with a return on equity of 12.59%. The next earnings report is expected on July 30, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
6 target raises vs 1 cuts.
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EPS & revenue
EPS beat estimates by 3.5%. Revenue beat estimates by 4.9%.
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Profit surprise
EBITDA missed by 11 percent. Operating income missed by 20 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
6 target raises, 1 target cut.
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Earnings quality
Gross margin up 31.5 points. Operating margin down 3.2 points. Positive free cash flow.
Earnings Call Summary
AEP delivered strong first quarter earnings of $1.64 per share, beating consensus of $1.55, driven by positive regulatory outcomes and higher load growth. The company secured 7 additional gigawatts of contracted load in the quarter, bringing total contracted load to 63 gigawatts by 2030, mostly from data centers and industrial customers in Texas, Ohio, Indiana and Oklahoma. Management highlighted concerns about PJM's interconnection speed and is evaluating alternatives to ensure faster load connection, while also noting that customers value AEP's transmission expertise and ability to deliver on aggressive timelines.
Guidance AEP reaffirmed full year 2026 earnings guidance of $6.15 to $6.45 per share. The company raised its 5-year capital plan to $78 billion from $72 billion, expecting 11 percent rate base growth annually. Long-term earnings growth is now expected to exceed 9 percent per year through 2030, up from 7 to 9 percent.
Slightly positive report. The quarter was acceptable, but the forward setup is not strong.
Dividend
The company pays an annual dividend rate of $3.80, yielding 2.93% based on current prices. The dividend payout ratio is 55.62%.
Insider Buying and Selling at American Electric Power Company, Inc.
Recent insider activity includes sales by several executives. On May 1, 2026, Greg Hall, Executive Vice President, sold 4,306 shares at an average price of $136.91. Kate Dixon, Controller and CAO, sold 636 shares at the same price. Douglas Cannon, President of AEP Transmission, sold 1,770 shares. Earlier, on March 10, 2026, CEO and President William Fehrman sold 45 shares at $132.31, while he also purchased 96 shares on the same day.
Analysts Set New Price Targets
Several analysts have maintained their ratings on American Electric Power. On June 18, 2026, Ladenburg Thalmann maintained a 'buy' rating with a price target of $143. Truist Securities also kept a 'buy' rating with a target of $145 on May 29, 2026. TD Cowen maintained a 'buy' with a target of $148 on May 15, 2026. The consensus recommendation is a 'buy', with an average target price of $144.10 based on 21 analyst opinions.
About American Electric Power
American Electric Power Company, Inc. is a major utility company based in Columbus, Ohio. It provides electricity generation, transmission, and distribution services across the United States. The company operates through several segments, including Vertically Integrated Utilities and AEP Transmission Holdco. AEP generates electricity using a diverse mix of energy sources, including coal, nuclear, natural gas, and renewables. Led by CEO William J. Fehrman, AEP employs over 17,500 people and manages extensive transmission and distribution infrastructure.
Bottom Line
FMR's increased stake in American Electric Power signals confidence in the utility's future prospects. Investors often track such filings to gauge institutional sentiment, though these reports are backward-looking and may not reflect current positions. With a solid market position and analyst support, American Electric Power remains a key player in the utilities sector.
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