HSBC Holdings Reduces $24M in American Electric Power Company, Inc. ($AEP)
HSBC Holdings cut its position in American Electric Power, reducing its stake by 16.6% as of its latest filing.
Key Points
- HSBC Holdings cut its stake in American Electric Power by 16.6%, reducing its holdings by 175,979 shares to a total of 885,737 shares.
- American Electric Power trades near $138.29 with a market cap of $75.5 billion and a P/E ratio of 20.5.
- BlackRock and Vanguard Capital Management made moves in AEP, with BlackRock adding shares and Vanguard opening a new position.
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HSBC Holdings has trimmed its stake in American Electric Power Company, Inc. (NasdaqGS: AEP) by 16.6%, according to its latest Form 13F filing with the SEC. The filing, reflecting holdings as of April 30, 2026, shows HSBC sold 175,979 shares, leaving it with 885,737 shares valued at approximately $122.5 million.
HSBC Holdings vs. the S&P 500
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What Changed in HSBC Holdings' American Electric Power Position
HSBC Holdings reduced its position in American Electric Power by 175,979 shares, a 16.6% decrease from its previous holding of 1,061,716 shares. The remaining 885,737 shares are worth about $122.5 million at current market prices.
Other Institutional Activity in American Electric Power
In other institutional moves, BlackRock, Inc. increased its holdings in American Electric Power by 1,536,746 shares, bringing its total to 47,797,729 shares, valued at roughly $6.27 billion. Vanguard Capital Management LLC initiated a new position, acquiring 35,138,422 shares valued at about $4.61 billion. State Street Corp slightly reduced its stake by 149,640 shares to 30,288,136 shares, worth approximately $3.97 billion. Meanwhile, GQG Partners LLC cut its holdings by 1,876,988 shares, leaving it with 15,025,884 shares valued at $1.97 billion.
American Electric Power Company, Inc. Stock Up 12.7%
Shares of American Electric Power traded near $138.29 on Saturday. The company boasts a market capitalization of $75.5 billion and a P/E ratio of 20.5. With a beta of 0.518, AEP has a 52-week trading range between $102.06 and $139.44. The stock's 50-day moving average is $131.01, and its 200-day moving average is $123.55. AEP maintains a current ratio of 0.526 and a quick ratio of 0.294, with a debt-to-equity ratio of 157.1.
$AEP stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
American Electric Power reported revenue of $22.43 billion with a growth rate of 10.2% in its most recent earnings. The company achieved a net margin of 16.3% and a return on equity of 12.6%. Earnings per share stood at $6.75. 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
American Electric Power offers a dividend rate of $3.80 per share, yielding 2.74%. The dividend payout ratio is 55.6%, providing income to investors while maintaining a solid financial footing.
Insider Buying and Selling at American Electric Power Company, Inc.
Recent insider activity at American Electric Power includes several sales on May 1, 2026. Executive Vice President Greg Hall sold 4,306 shares at $136.91 each. Controller and CAO Kate Dixon sold 636 shares, while Douglas Cannon, President of AEP Transmission, sold 1,770 shares at the same price. Earlier, on March 10, CEO and President William Fehrman sold 45 shares at $132.31 but also bought 96 shares on the same day.
Analysts Set New Price Targets
Analyst coverage remains active, with Ladenburg Thalmann maintaining a 'buy' rating and a price target of $143 on June 18, 2026. Truist Securities also upheld a 'buy' rating with a target of $145 on May 29, 2026. Other firms like TD Cowen, Barclays, Citigroup, Scotiabank, Wells Fargo, and Mizuho have maintained their ratings, with price targets ranging from $136 to $148.
About American Electric Power
American Electric Power Company, Inc., headquartered in Columbus, Ohio, is a major electric utility holding company. It generates, transmits, and distributes electricity to retail and wholesale customers across the United States. The company operates through various segments, including Vertically Integrated Utilities and Transmission and Distribution Utilities. With a diverse energy mix, AEP manages an extensive network of transmission and distribution lines and boasts significant generating capacity.
Bottom Line
HSBC Holdings' decision to reduce its stake in American Electric Power is part of its latest portfolio adjustments, as reported in the backward-looking 13F filing. Investors track these filings to understand institutional sentiment and potential shifts in market positioning. While HSBC trimmed its holdings, other major funds like BlackRock and Vanguard made significant moves, reflecting varied strategies in the utility sector.
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