AEP's 80.4% Trading Volume Surge Propels It to 229th in Market Activity Amid Institutional Backing and Analyst Upgrades

American Electric Power (AEP) saw a 0.52 billion dollar trading volume on August 13, 2025, an 80.4% increase from the previous day, ranking it 229th in market activity. The stock closed with a 1.00% gain, reflecting heightened institutional and analyst-driven momentum.

The Public Sector Pension Investment Board increased its stake in AEP by 3.2%, now holding 142,558 shares valued at $15.58 million. Additional institutional buyers, including EQ Wealth Advisors and Fourth Dimension Wealth, added smaller positions in the first and fourth quarters, collectively reinforcing investor confidence in the utility’s long-term stability.

Analysts revised their price targets upward, with Barclays raising its target to $111 and Raymond James to $122. These upgrades, alongside a $0.93 quarterly dividend (3.3% yield), underscore AEP’s appeal as a defensive income play. The company’s 54.39% payout ratio and 11.1% year-over-year revenue growth further highlight its balanced approach to shareholder returns and operational expansion.

Insider transactions, however, showed mixed signals. Executive vice presidents Quinton Lies and David Feinberg sold significant portions of their holdings, reducing ownership by 51.22% and 43.96%, respectively. These sales, reported in SEC filings, may indicate strategic portfolio adjustments but add complexity to the stock’s short-term outlook.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 delivered a 6.98% compound annual growth rate, with a 15.46% maximum drawdown during the backtest period. While the approach showed steady growth, the mid-2023 decline emphasizes the need for risk mitigation in volatile markets.