American Equity Investment Life (NYSE:AEL) Shares down 4.8% on weak earnings

Shares of American Equity Investment Life Holding (NYSE:AEL) fell 4.8% in Friday’s session after a weaker-than-expected earnings report. The stock traded as low as $40.11 and last traded at $40.11. About 2,975 shares were traded midday, down 99% from the average daily volume of 542,946 shares. The stock had previously closed at $42.15. The financial services provider reported earnings per share (EPS) of $0.81 for the quarter, missing analyst consensus estimates of $1.05 per ($0.24). American Equity Investment Life posted a return on equity of 5.87% and a net margin of 10.79%. In the same quarter a year earlier, the company posted earnings per share of $0.77.

The company also recently announced an annual dividend, which was paid on Monday, December 13. Investors of record on Monday, November 29 received a dividend of $0.34. The ex-dividend date was Friday, November 26. This is a positive change from American Equity Investment Life’s previous annual dividend of $0.18. This represents a return of 0.97%. American Equity Investment Life’s dividend payout ratio (DPR) is currently 9.47%.

Several brokerages have recently published reports on AEL. Raymond James raised its price target on American Equity Investment Life shares from $40.00 to $44.00 and gave the company an “outperform” rating in a Monday, January 10, report. Keefe, Bruyette & Woods downgraded shares of American Equity Investment Life from a “market performance” rating to an “outperform” rating and set a price target of $42.00 for the company in a Wednesday, December 1 report. Piper Sandler moved shares of American Equity Investment Life from a “neutral” rating to an “overweight” rating and raised her price target for the company from $36.00 to $46.00 in a report from the Wednesday, January 5. Truist Financial raised its price target on American Equity Investment Life shares from $39.00 to $44.00 and gave the company a “buy” rating in a Thursday, November 11 research report. Finally, Jefferies Financial Group began covering American Equity Investment Life stocks in a research report on Tuesday, January 25. They issued a “hold” rating and a price target of $42.00 for the company. Five investment analysts gave the stock a hold rating and six gave the company a buy rating. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average target price of $41.58.

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In other news from American Equity Investment Life, EVP Ronald James Grensteiner sold 10,894 shares of the company in a trade on Thursday, January 20. The shares were sold at an average price of $42.05, for a total transaction of $458,092.70. The transaction was disclosed in an SEC filing, which is available via the SEC website. Also, CEO Anant Bhalla sold 10,214 shares of the company in a trade on Tuesday, November 30. The shares were sold at an average price of $29.64, for a total transaction of $302,742.96. Disclosure of this sale can be found here. In the past ninety days, insiders have sold 41,108 shares of the company worth $1,582,836. Insiders hold 1.90% of the shares of the company.

Several large investors have recently increased or reduced their stake in the company. Morgan Stanley increased its stake in shares of American Equity Investment Life by 19.6% in the second quarter. Morgan Stanley now owns 394,595 shares of the financial services provider valued at $12,754,000 after acquiring an additional 64,764 shares last quarter. Blueshift Asset Management LLC increased its position in American Equity Investment Life by 8.4% during the third quarter. Blueshift Asset Management LLC now owns 21,798 shares of the financial services provider worth $645,000 after purchasing an additional 1,698 shares during the period. Bank of Montreal Can increased its position in American Equity Investment Life by 18.1% during the second quarter. Bank of Montreal Can now owns 29,884 shares of the financial services provider worth $1,002,000 after purchasing an additional 4,572 shares during the period. Russell Investments Group Ltd. increased its position in American Equity Investment Life by 3.0% during the third quarter. Russell Investments Group Ltd. now owns 273,358 shares of the financial services provider worth $8,080,000 after purchasing an additional 7,842 shares during the period. Finally, FORA Capital LLC bought a new stock position in American Equity Investment Life in the second quarter worth approximately $114,000. Hedge funds and other institutional investors hold 93.49% of the company’s shares.

The company has a market capitalization of $3.68 billion, a P/E ratio of 11.74 and a beta of 1.15. The company’s 50-day moving average is $40.50 and its 200-day moving average is $35.40. The company has a debt ratio of 0.09, a quick ratio of 0.34 and a current ratio of 0.34.

American Equity Investment Life Insurance Company Profile (NYSE: AEL)

American Equity Investment Life Holding Co is engaged in the development and sale of fixed index and fixed rate annuity products. It focuses on the following portfolios: commercial mortgages, agricultural mortgages and residential mortgages. The company was founded by David J. Noble on December 15, 1995 and is based in West Des Moines, IA.

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