AEP's Earnings Beat and Analyst Upgrades Despite 243rd Daily Trading Volume Rank

On August 21, 2025, American Electric Power (AEP) traded with a volume of $0.35 billion, ranking 243rd in daily trading activity. The company reported earnings per share (EPS) of $1.43, exceeding analyst expectations, and revenue increased 11.1% year-over-year to $5.09 billion.

Analyst activity highlighted mixed but generally positive sentiment. UBS Group raised its price target to $110, while Guggenheim and Morgan Stanley adjusted targets upward to $115 and $113, respectively. A consensus "Hold" rating persists, with an average 12-month price target of $111.29. Institutional investors, including Brooklyn Investment Group and Advantage Trust Co., increased holdings, though insider sales by executives like David Matthew Feinberg reduced their positions.

The company announced a quarterly dividend of $0.93 per share, translating to a 3.4% yield. Meanwhile, recent insider transactions saw 24,173 shares sold in the last quarter, valued at $2.47 million, though institutional ownership remains strong at 75.24%.

A strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 1.98% average daily return. Over 365 days, total returns reached 7.61%, with a Sharpe ratio of 0.94. However, the approach faced a maximum drawdown of -29.16%, underscoring volatility risks during market downturns.