American Equity Investment Life (NYSE:AEL) shares diverge after earnings beat expectations


Investment in American shares Life Holding (NYSE:AELGet a rating) shares widened ahead of Tuesday’s market open after a stronger-than-expected earnings report. The stock had previously closed at $36.24, but opened at $37.95. American Equity Investment Life shares last traded at $39.49, with a volume of 4,330 shares traded.

The financial services provider reported earnings per share (EPS) of $0.98 for the quarter, beating the consensus estimate of $0.79 by $0.19. American Equity Investment Life achieved a return on equity of 7.26% and a net margin of 26.35%. The company posted revenue of $121.40 million for the quarter, versus a consensus estimate of $628.20 million. In the same quarter of the previous year, the company achieved EPS of $0.98. The company’s revenue for the quarter was down 88.7% from the same quarter last year.

A Wall Street analyst gives his opinion

Several research companies have weighed in on AEL. Evercore ISI lowered its target price on American Equity Investment Life from $44.00 to $42.00 and set an “outperform” rating on the stock in a Wednesday July 6 research note. Credit Suisse Group downgraded American Equity Investment Life from an “outperform” rating to a “neutral” rating and lowered its target price for the company from $43.00 to $38.00 in a Friday research note 22nd of July. Morgan Stanley lowered its target price on American Equity Investment Life from $41.00 to $40.00 and set an “equal weight” rating on the stock in a Wednesday July 6 research note. StockNews.com upgraded American Equity Investment Life from a “buy” to a “hold” rating in a Friday, May 20 research note. Finally, Piper Sandler lowered her price target on American Equity Investment Life from $44.00 to $41.00 and set an “overweight” rating for the company in a Friday, July 8 research note. Five research analysts gave the stock a hold rating and five gave the stock a buy rating. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $42.00.

Institutional Investors Weigh in on US Stock Investment Life

A number of large investors have recently increased or reduced their stake in AEL. West Bancorporation Inc. acquired a new stake in American Equity Investment Life during the fourth quarter for a value of approximately $22,212,000. Point72 Asset Management LP increased its holdings of American Equity Investment Life shares by 1,183.3% during the fourth quarter. Point72 Asset Management LP now owns 598,010 shares of the financial services provider worth $23,275,000 after buying an additional 551,410 shares in the last quarter. abrdn plc acquired a new position in shares of American Equity Investment Life during the second quarter worth approximately $18,792,000. Invesco Ltd. increased its holdings of American Equity Investment Life shares by 12.0% in the first quarter. Invesco Ltd. now owns 1,836,085 shares of the financial services provider worth $73,278,000 after purchasing an additional 196,589 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its holdings of American Equity Investment Life shares by 2.9% during the first quarter. Dimensional Fund Advisors LP now owns 6,903,390 shares of the financial services provider worth $275,512,000 after buying an additional 193,277 shares in the last quarter. Institutional investors hold 95.15% of the company’s shares.

Life insurance of U.S. equity investments trades up 12.9%

The company has a market capitalization of $3.81 billion, a price-earnings ratio of 5.54 and a beta of 1.06. The company has a fifty-day moving average price of $37.20 and a 200-day moving average price of $38.36. The company has a debt ratio of 0.11, a current ratio of 0.17 and a quick ratio of 0.17.

American Equity Investment Life Insurance Company Profile

(Get a rating)

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the United States. The company issues index and fixed rate annuities, as well as single premium immediate annuities. It markets its products through independent agents, including independent marketing organizations, broker/dealers, banks and registered investment advisers.

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