# American Electric Power Company, Inc. (AEP)

> Source: Nexqual · https://nexqual.com/AEP · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, American Electric Power Company, Inc. (AEP), nexqual.com/AEP" · informational, not investment advice.

**Price:** USD 130.64 (+2.55% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 127.39 · day 127.96–131.04 · 52w 112.54–140.58 · market cap $71.1B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $22.8B, net income $3.26B (14.3% margin), free cash flow $4.29B (SEC filings).
- Valuation: P/E 21.8x (avg 17.5x at the last 3 fiscal year-ends), net debt $50.2B.
- 3 of 80 tracked superinvestors hold AEP (13F, Q2 2026 (1 investor on Q3 2026, filed early)): 0 new, 1 added, 2 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 1 Form 4 filings, $250K; 0 not under a Rule 10b5-1 plan ($0K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 2.21 on a 1–5 scale) (24 analysts), mean target USD 141.15 (range 120–173).
- Total return with dividends: 1Y +15.9% vs S&P 500 +14.9%; 5Y +82.7% vs S&P 500 +80.3%.
- Next earnings: 2026-10-28, EPS estimate USD 2.04, revenue estimate $6.60B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $16.8B | $19.6B | $19.5B | $20.0B | $21.9B | $22.8B |
| Operating income | $3.41B | $3.48B | $3.56B | $4.30B | $5.32B | $5.24B |
| Net income | $2.49B | $2.31B | $2.21B | $2.98B | $3.70B | $3.26B |
| EPS (diluted) | $4.96 | $4.49 | $4.24 | $5.58 | $6.66 | — |
| Free cash flow | — | — | $4.86B | $6.41B | $3.49B | $4.29B |
| Operating margin | 20.3% | 17.7% | 18.3% | 21.6% | 24.3% | 23.0% |
| Net margin | 14.8% | 11.7% | 11.4% | 14.9% | 16.9% | 14.3% |
| Revenue growth | +12.6% | +17.0% | -0.9% | +2.6% | +9.5% | — |
| Cash + short-term investments | $624M | $697M | $544M | $418M | $417M | — |
| Total debt | $33.5B | $36.8B | $40.1B | $42.6B | $47.3B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 21.8x · P/S 3.1x · EV/Sales 5.3x · P/FCF 16.6x · P/B 2.2x · FCF yield 6.03% · Earnings yield 4.58% · Dividend yield (paid, TTM) 2.88% · Net debt $50.2B · EV $121B
P/E at fiscal year-ends: Dec 2025 16.8x, Dec 2024 16.5x, Dec 2023 19.1x.

## Superinvestors (SEC 13F-HR, Q2 2026)
3 of 80 tracked investors hold AEP (1 investor on Q3 2026, filed early). Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change | Quarter |
|---|---|---|---|---|---|
| David Katz | Matrix Asset Advisors | 1.76% | $21.3M | Added +16.2% | Q3 2026 |
| Carl Icahn | Icahn Capital Management | 0.72% | $59.5M | Reduced -63.9% | Q2 2026 |
| Dodge & Cox Funds | Dodge & Cox | 0.62% | $1.19B | Reduced -0.8% | Q2 2026 |

## Insider sales (SEC Form 4, open-market, last ~7 months)
1 of 1 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-09-08 | Dixon Kate | Controller, CAO | 2,000 | $250K | 11.2% | Yes (adopted June 5, 2026) | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 2.21 on a 1–5 scale), 24 analysts; mean target USD 141.15 (low 120, high 173).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | Jefferies | Target lowered | Buy | $148 → $146 |
| 2026-10-22 | HSBC | Initiated | Buy | $145.9 |
| 2026-10-21 | Morgan Stanley | Target raised | Overweight | $128 → $130 |
| 2026-10-20 | BTIG | Upgrade | Neutral → Buy | $147 |
| 2026-10-19 | JP Morgan | Target lowered | Neutral | $140 → $135 |
| 2026-10-19 | BMO Capital | Target lowered | Market Perform | $139 → $135 |
| 2026-10-13 | Keybanc | Upgrade | Sector Weight → Overweight | $133 |
| 2026-10-12 | Barclays | Target lowered | Equal-Weight | $129 → $120 |
| 2026-09-18 | Morgan Stanley | Target lowered | Overweight | $135 → $128 |
| 2026-08-21 | Morgan Stanley | Target lowered | Overweight | $139 → $135 |
| 2026-08-17 | Truist Securities | Target lowered | Buy | $146 → $139 |
| 2026-08-05 | Citigroup | Target lowered | Neutral | $148 → $142 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +15.9% | +82.7% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +16.0% | +12.8% |
| Volatility (annualized) | 19.3% | 19.9% |
| Max drawdown | -14.6% (Jun 2026→Sep 2026) | -28.6% (Aug 2022→Oct 2023) |

## Peers (Utilities - Regulated Electric)
NGG (National Grid Transco, PLC Nati) USD 82.64 +2.30% · D (Dominion Energy, Inc.) USD 65.4 +4.93% · DUK (Duke Energy Corporation (Holdin) USD 125.4 +3.92% · ETR (Entergy Corporation) USD 108.19 +1.99% · XEL (Xcel Energy Inc.) USD 78.9 +2.76% · SO (Southern Company (The)) USD 93.82 +3.79%

## More
Full page: https://nexqual.com/AEP · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)


Other companies that name AEP in their own reports (relationship from AEP's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| supplier | ALLIANCE RESOURCE PARTNERS LP (ARLP) | 10-K 2026-02-26 | "In 2025, we derived more than 10% of our total revenue from each of Louisville Gas and Electric Company and American Electric Power Company Inc. We did not derive 10% or more of our revenues from any …" |
| customer | Cipher Digital Inc. (CIFR) | 10-K 2026-02-24 | "We depend on third parties, including transmission and distribution utilities like Oncor Electric Delivery Company LLC ("Oncor") and AEP, the Texas grid operator, ERCOT, and manufacturers of critical …" |
| partner | Evergy, Inc. (EVRG) | 10-K 2026-02-19 | "Evergy Kansas Central also owns a 50% interest in Prairie Wind Transmission, LLC (Prairie Wind), which is a joint venture between Evergy Kansas Central and subsidiaries of AEP and Berkshire Hathaway E…" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| VIU | $3.15B | 57.9% | +5.5% |
| T&D | $1.57B | 28.8% | +9.4% |
| G&M | $698.0M | 12.8% | +20.6% |
| AEPTHCo | $617.0M | 11.3% | -12.9% |
| AEPTHCo | $610.0M | 11.2% | -19.4% |
| Total revenue | $5.45B | 100% | — |
The lines above cover 122.1% of total revenue.

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Vertically Integrated Utilities | $3.05B | 56.0% | +4.0% |
| — Electric Transmission and Distribution (part of Vertically Integrated Utilities) | $1.57B | 28.8% | +8.7% |
| — Commercial Revenues (part of Vertically Integrated Utilities) | $852.0M | 15.6% | +13.6% |
| — Total Wholesale and Competitive Retail Revenues (part of Vertically Integrated Utilities) | $389.0M | 7.1% | -1.3% |
| — Generation Revenues (part of Vertically Integrated Utilities) | $236.0M | 4.3% | -0.4% |
| Total Retail Revenues | $2.69B | 49.3% | +5.5% |
| Residential Revenues | $1.07B | 19.7% | +4.1% |
| Industrial Revenues | $702.0M | 12.9% | -0.3% |
| Generation & Marketing Revenues | $693.0M | 12.7% | +25.5% |
| Transmission Revenues | $153.0M | 2.8% | -2.5% |
| Other Revenues | $77.0M | 1.4% | +57.1% |
| Other Retail Revenues | $60.0M | 1.1% | -1.6% |
| Total revenue | $5.45B | 100% | — |
The lines above cover 156% of total revenue.

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $2.04 | $1.99 | +2.5% | $6.60B | 15 |
| Next quarter (ends 2026-12-31) | $1.37 | $1.26 | +9.3% | $5.54B | 12 |
| Current fiscal year (ends 2026-12-31) | $6.40 | $6.35 | +0.8% | $23.70B | 20 |
| Next fiscal year (ends 2027-12-31) | $6.87 | $6.84 | +0.4% | $25.19B | 20 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-10-28): ±5.0%; last 8 reports averaged ±2.9%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 21.6% | ±5.0% |
| 2026-12-18 | 56 | 19.7% | ±6.2% |
| 2027-01-15 | 84 | 20.1% | ±7.8% |
| 2027-02-19 | 119 | 20.0% | ±9.2% |
| 2027-03-19 | 147 | 20.4% | ±10.3% |
| 2027-05-21 | 210 | 20.4% | ±12.3% |
| 2027-06-17 | 237 | 20.1% | ±12.8% |
| 2027-09-17 | 329 | 20.8% | ±15.4% |