The brokerages assigned a consensus rating of “Hold” to American Equity Investment Life Holding (NYSE:AEL).
According to Bloomberg Ratings, the eleven rating agencies currently monitoring the company have collectively given American Equity Investment Life Holding (NYSE: AEL-Get Recommendation) a “Hold” recommendation, which is the average recommendation given to the company by those analysts. This recommendation was determined by taking the average of the recommendations given to the company by each rating agency. Four analysts are in favor of owning the company, while six believe you should postpone the purchase for the time being.
Analysts who have looked at the company over the past year have forecast that its average price will be $43.60 next year after doing so.
Not so long ago, several studies on AEL by various research companies were made public. In a research note published Aug. 11, Truist Financial gave American Equity Investment Life a stronger “buy” rating. The report focused on the company’s outlook. Additionally, the company raised its price target on the stock from $45.00 to $51.00. In a company report released Wednesday, August 17, Morgan Stanley raised its price target on American Equity Investment Life from $40.00 to $43.00 in a report. Additionally, an “equal weight” rating has been assigned to the stock by the company.
In a research note published Aug. 15, Raymond James raised his “outperform” rating on American Equity Investment Life shares from $40.00 to $48.00 and raised his price target on shares from $40.00 to $48.00. Both of these changes were made in response to recent market developments. In a research report released Friday, July 8, American Equity Investment Life lowered its price target for American Equity Investment Life shares from $44.00 to $41.00 and assigned an “overweight” rating to the stock of American Equity Investment Life. Piper Sandler also gave American Equity Investment Life an “overweight” rating. Last but not least, in a research note published on Friday, July 22, Credit Suisse Group announced that its price target for American Equity Investment Life had been lowered from $43.00 to $38.00 and that it had changed its rating on the action from “outperform” to “neutral”.
On Tuesday, August 9, Jeffrey D. Lorenzen, executive vice president of American Equity Investment Life, sold 25,000 shares of the company. This was covered in a report that was released on its own. An aggregate price of one million dollars has been agreed for the sale of the shares, which works out to an average price of forty dollars for each share bought and sold. As a result of the transaction, the executive vice president now directly owns a total of 36,439 shares of the company, which have a combined value of approximately $1,457,560. These shares were given as a gift to the Executive Vice President. On the website of the Securities and Exchange Commission, the information document which includes the information on the transaction can be consulted in its entirety at any time. Insiders of the company control 1.59% of the total number of shares held by the company.
Recently, several hedge funds and other large investors have changed the way they maintain their positions in AEL in light of recent developments. BlackRock Inc. increased the percentage of American Equity Investment Life shares it held by 0.4% in the first three months. BlackRock Inc. now owns a total of 13,317,782 shares held by the financial services provider after acquiring an additional 49,702 shares during the quarter. The stock is currently valued at $531,512,000. During the first three months of the year, Dimensional Fund Advisors LP increased its stake in American Equity Investment Life by purchasing an additional 2.9% of its shares.
The company now owns 6,903,390 shares held by Dimensional Fund Advisors LP after purchasing an additional 193,277 shares in the last quarter to bring the total number of shares held by the company to a new high. The current market value of these shares is $275,512,000. Macquarie Group Ltd. increased the number of American Equity Investment Life shares held in the second quarter of the year by 1.7%. Following the acquisition of an additional 85,531 shares in the financial services provider during the previous quarter, Macquarie Group Ltd. now owns a stake in the company with a total value of $5,253,182. The value of State Street Corporation’s investment in American Equity Investment Life rose 4.7% in the first three months of 2018. State Street Corp now owns 3,189,994 shares of the financial services provider after buying 142,611 additional shares during the last quarter.
The shares have an expected market value of $127,313,000. Additionally, during the second quarter, Clearbridge Investments LLC increased the number of American Equity Investment Life shares it held by 0.3%, bringing its total percentage to 100%. Clearbridge Investments LLC now owns 2,822,498 shares of the financial services provider’s stock. Those shares are now valued at $103,219,000 after Clearbridge Investments LLC purchased 7,434 of those shares during the quarter. Institutional investors and hedge funds currently own a combined 93.16% of the company’s shares. When trading began on Friday, AEL’s stock price was $37.64 per share. The lowest price American Equity Investment Life has been at in the past year is $27.12, and the highest price it has been at in the past year is $44.49. Each of these percentages equals 0.16, with the debt ratio, quick ratio and current ratio equaling 0.15. The stock’s 50- and 200-day moving averages currently sit at $37.58 and $38.03, respectively.
The stock is currently trading at $38.03. The company is currently valued at $3.30 billion in the market. It has a price to earnings ratio of 3.18 and its beta is 1.04. Both numbers are impressive.
On Monday, August 8, American Equity Investment Life (NYSE: AEL-Get Rating) released its quarterly trading results report. The information was included in the company’s earnings announcement. The financial services provider reported earnings per share (EPS) for the quarter of $0.98, $0.27 above the average expectation of $0.71. American Equity Investment Life’s return on equity was 8.22% and the company’s net margin was 61.05%. The final sales tally for the quarter was $121.40 million, a substantial drop from market analysts’ forecast of $628.20 million for the number of sales generated during the period.
The company reported earnings per share of $0.98 for the same quarter in the prior year’s financial statements. The company’s quarterly sales were down 88.7% from the same quarter a year earlier. American Equity Investment Life’s 2018 earnings per share are expected to be $3.73, according to sell-side analysts. The American Equity Investment Life Holding Company and its subsidiaries provide the US market with a variety of life insurance products, which are also distributed in this market.
The company offers a variety of annuities, including single premium instant annuities, fixed index, rate annuities and other types of annuities. To do this, it relies on a network of independent representatives. This network includes licensed investment advisers, banks, independent marketing organizations, brokers/dealers and many other types of businesses.