American Electric Power Company, Inc. (AEP)

In the past six months, several events have impacted AEP's stock price. On June 5, 2025, AEP closed a strategic partnership with KKR and PSP Investments, who jointly invested $2.82 billion for a 19.9% equity interest in AEP's Ohio and Indiana Michigan transmission companies. This transaction is intended to support AEP's five-year, $54 billion capital investment plan. Also in June 2025, AEP announced executive leadership changes. In May 2025, AEP reported its first-quarter earnings, reaffirming its guidance. Earlier in the year, on January 13, 2025, BofA Securities upgraded its outlook for AEP from Underperform to Buy. Raymond James also initiated coverage with an "Outperform" recommendation on June 13, 2025. The company's stock price increased by 15.44% between June 24, 2024, and June 20, 2025. As of June 30, 2025, AEP's stock price was $103.76. On June 30, 2025, American Electric Power Company, Inc. was dropped from the Russell 1000 Dynamic Index.

Demand for American Electric Power's products and services exhibits seasonality, influenced by weather patterns. AEP Energy offers fixed-rate plans to customers, which do not fluctuate with seasonal demands, suggesting that energy prices can otherwise vary seasonally.

American Electric Power (AEP) operates primarily in the Utilities sector, specifically within the Electric Utilities and Regulated Utilities industries. Its core business revolves around the generation, transmission, and distribution of electricity. AEP serves over five million customers across 11 states. The company generates power using a diverse mix of sources, including coal, natural gas, wind, solar, nuclear, and hydro. AEP is actively investing in renewable energy resources and grid technology, aiming to meet the growing demand for clean energy and modernize its infrastructure. The company operates through several segments, including Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing.

AEP's geographic footprint spans 11 states, with a significant presence in the Midwest, South, and Texas. Its utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia, and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, and east Texas). AEP also owns the nation's largest electricity transmission system, covering nearly 40,000 miles.

American Electric Power has maintained a positive brand reputation in the past year, being named one of America's Most JUST Companies for the fifth consecutive year. This recognition acknowledges companies for their commitment to stakeholders, including investing in employees and supporting communities. AEP placed in the top 20 overall and secured second place in the utilities industry.

Institutional investors hold a significant stake in American Electric Power, with approximately 83.74% to 84% institutional ownership. The largest institutional shareholders include Vanguard Group Inc., BlackRock, Inc., State Street Corp, Wellington Management Group Llp, and GQG Partners LLC. The general public, typically individual investors, holds about a 16% stake in the company. Insiders own less than 1% of American Electric Power Company, Inc.