On Monday, shares of American Equity Investment Life Holding Company (NYSE:AEL) marked $27.49 per share versus a previous $32.30 closing price. With having a -14.89% loss, an insight into the fundamental values of American Equity Investment Life Holding Company, investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. AEL showed a fall of -8.15% within its YTD performance, with highs and lows between $9.07 – $34.25 during the period of 52 weeks, compared to the simple moving average of 15.18% in the period of the last 200 days.
RBC Capital Mkts equity researchers changed the status of American Equity Investment Life Holding Company (NYSE: AEL) shares from “Sector Perform” to a “Outperform” rating in the report published on October 2nd, 2020. Other analysts, including Raymond James, also published their reports on AEL shares. Raymond James repeated the rating from the previous report, marking AEL under “Mkt Perform” rating, in the report published on August 19th, 2020. Additionally, AEL shares got another “Equal-Weight” rating from Morgan Stanley, setting a target price of $25 on the company’s shares, according to the report published in August 4th, 2020. On July 2nd, 2020, Piper Sandler Downgrade an Neutral rating and increased its price target from $27 to $25. On the other hand, RBC Capital Mkts Downgrade the “Sector Perform” rating for AEL shares, as published in the report on March 20th, 2020. Piper Sandler seems to be going bullish on the price of AEL shares, based on the price prediction for AEL, indicating that the shares will jump from $30 to $25, giving the shares “Overweight” rating based on their report from March 10th, 2020. Another “Hold” rating came from Sandler O’Neill.
[bold-text]American Equity Investment Life Holding Company (AEL) Analysis[/bold-text]
The present dividend yield for AEL owners is set at 0.01, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with American Equity Investment Life Holding Company, the company needs to provide a healthy cash flow, currently at the value of 2.21. In addition, the growth of sales from quarter to quarter is recording 30.20%, hinting the company’s progress in the upcoming progress.
In order to gain a clear insight on the performance of American Equity Investment Life Holding Company (AEL) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 5.60% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.
Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while AEL is currently recording an average of 771.80K in volumes. The volatility of the stock on monthly basis is set at 4.89%, while the weekly volatility levels are marked at 4.74%with -12.73% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $31.88, indicating growth from the present price of $27.49, which can represent yet another valuable research and analysis points that can help you decide whether to invest in AEL or pass.
[bold-text]What to Look for When Analyzing American Equity Investment Life Holding Company Shares?[/bold-text]
American Equity Investment Life Holding Company (AEL) is based in the USA and it represents one of the well-known company operating with Financial sector. If you wish to compare AEL shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 10.52 for American Equity Investment Life Holding Company, while the value 6.03 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 2.61 is supported by the yearly EPS growth of -46.50%.
Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 1.20%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 97.12% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.
[bold-text]Are Institutional Investors Increasing Stakes in AEL Shares?[/bold-text]
It appears that more than several institutional investors and hedge funds decided to increase stakes in AEL in the recent period. That is how Dimensional Fund Advisors LP now has an increase position in AEL by 2.06% in the first quarter, owning 7.64 million shares of AEL stocks, with the value of $167.98 million after the purchase of an additional 154,061 shares during the last quarter. In the meanwhile, Citigroup Global Markets, Inc. also increased their stake in AEL shares changed 588.88% in the first quarter, which means that the company now owns 6.68 million shares of company, all valued at $146.93 million after the acquisition of additional 5,711,609 shares during the last quarter.
KKR Investment Management LLC acquired a new position in American Equity Investment Life Holding Company during the first quarter, with the value of $98.28 million, and SSgA Funds Management, Inc. increased their stake in the company’s shares by 2.14% in the first quarter, now owning 71,620 shares valued at $75.03 million after the acquisition of the additional 3.41 million shares during the last quarter. In the end, EARNEST Partners LLC increased their position by 1.66% during the first quarter, now owning 3.35 million AEL shares, now holding the value of $73.77 million in AEL with the purchase of the additional 39,920 shares during the period of the last quarter. At the present, 97.12% of AEL shares are in the ownership of institutional investors.