A Stock You Should Be Looking At: American Equity Investment Life Holding Company (NYSE:AEL)

The price of American Equity Investment Life Holding Company (NYSE: AEL) closed at $33.09 in the last session, down -1.69% from day before closing price of $33.66. In other words, the price has decreased by -$0.57 from its previous closing price. On the day, 1157484 shares were traded. AEL stock price reached its highest trading level at $33.26 during the session, while it also had its lowest trading level at $32.07.

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We take a closer look at AEL’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 1.53 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 1.46. In the meantime, Its Debt-to-Equity ratio is 0.27 whereas as Long-Term Debt/Eq ratio is at 0.27.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Piper Sandler on February 21, 2023, Downgraded its rating to Neutral and sets its target price to $48 from $45 previously.

On December 19, 2022, Raymond James Upgraded its rating to Strong Buy which previously was Outperform but kept the price unchanged to $48.

Evercore ISI Downgraded its Outperform to In-line on August 15, 2022, whereas the target price for the stock was revised from $42 to $44.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Aug 09 when Lorenzen Jeffrey D sold 25,000 shares for $40.00 per share. The transaction valued at 1,000,078 led to the insider holds 36,439 shares of the business.

Neugent Gerard D. sold 4,237 shares of AEL for $147,607 on May 16. The Director now owns 51,003 shares after completing the transaction at $34.84 per share. On Apr 12, another insider, Grensteiner Ronald James, who serves as the Executive Vice President of the company, sold 9,188 shares for $38.31 each. As a result, the insider received 352,023 and left with 89,039 shares of the company.

Valuation Measures:

As of this moment, American’s Price-to-Earnings (P/E) ratio for their current fiscal year is 2.65, and their Forward P/E ratio for the next fiscal year is 5.78. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.10. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.07 while its Price-to-Book (P/B) ratio in mrq is 0.89.

Stock Price History:

Over the past 52 weeks, AEL has reached a high of $48.37, while it has fallen to a 52-week low of $28.05. The 50-Day Moving Average of the stock is 44.24, while the 200-Day Moving Average is calculated to be 40.18.

Shares Statistics:

According to the various share statistics, AEL traded on average about 683.65K shares per day over the past 3-months and 857.15k shares per day over the past 10 days. A total of 85.22M shares are outstanding, with a floating share count of 84.19M. Insiders hold about 1.60% of the company’s shares, while institutions hold 99.80% stake in the company. Shares short for AEL as of Jan 30, 2023 were 1.07M with a Short Ratio of 1.52M, compared to 1.09M on Dec 29, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.25% and a Short% of Float of 2.38%.

Dividends & Splits

The forward annual dividend rate for AEL is 0.36, which was 0.32 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 0.95%, it implies a Forward Annual Dividend Yield of 0.77%. The stock’s 5-year Average Dividend Yield is 1.00. The current Payout Ratio is 2.90% for AEL, which recently paid a dividend on Dec 12, 2022 with an ex-dividend date of Nov 24, 2022. Stock splits for the company last occurred on Jun 29, 2000 when the company split stock in a 3:1 ratio.

Earnings Estimates

The company has 10 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.97 for the current quarter, with a high estimate of $1.11 and a low estimate of $0.89, while EPS last year was $0.81. The consensus estimate for the next quarter is $1.15, with high estimates of $1.29 and low estimates of $0.99.

Analysts are recommending an EPS of between $4.19 and $4.06 for the fiscal current year, implying an average EPS of $4.12. EPS for the following year is $5.05, with 10 analysts recommending between $5.3 and $4.79.

Revenue Estimates

According to 6 analysts, the current quarter’s revenue is expected to be $565.68M. It ranges from a high estimate of $601.34M to a low estimate of $504M. As of the current estimate, American Equity Investment Life Holding Company’s year-ago sales were $515M, an estimated increase of 9.80% from the year-ago figure. For the next quarter, 5 analysts are estimating revenue of $579M, an increase of 2.00% less than the figure of $9.80% in the same quarter last year. There is a high estimate of $601.9M for the next quarter, whereas the lowest estimate is $547M.

A total of 6 analysts have provided revenue estimates for AEL’s current fiscal year. The highest revenue estimate was $2.37B, while the lowest revenue estimate was $2.29B, resulting in an average revenue estimate of $2.34B. In the same quarter a year ago, actual revenue was $2.04B, up 14.70% from the average estimate. Based on 6 analysts’ estimates, the company’s revenue will be $2.3B in the next fiscal year. The high estimate is $2.42B and the low estimate is $2.16B. The average revenue growth estimate for next year is down -1.60% from the average revenue estimate for this year.