Don't Ignore The Fact That This Insider Just Sold Some Shares In American Electric Power Company, Inc. (NASDAQ:AEP)

By
Simply Wall St
Published
February 18, 2021
NasdaqGS:AEP

Anyone interested in American Electric Power Company, Inc. (NASDAQ:AEP) should probably be aware that the Executive VP & COO, Lisa Barton, recently divested US$483k worth of shares in the company, at an average price of US$78.61 each. The eyebrow raising move amounted to a reduction of 15% in their holding.

View our latest analysis for American Electric Power Company

American Electric Power Company Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Strategy, Brian Tierney, for US$1.9m worth of shares, at about US$102 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$78.49. So it is hard to draw any strong conclusion from it.

Insiders in American Electric Power Company didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:AEP Insider Trading Volume February 18th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of American Electric Power Company

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. American Electric Power Company insiders own about US$24m worth of shares. That equates to 0.06% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The American Electric Power Company Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Electric Power Company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of American Electric Power Company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Promoted
When trading American Electric Power Company or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.