American Electric Power Co. (NYSE: AEP) Shares Downgraded at Jefferies Group

Analysts at Jefferies Group downgraded shares of American Electric Power Co. (NYSE: AEP) from Buy to Hold in a research note to investors today.Jefferies Group currently has a rating of Hold on the shares. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and American Electric Power Co. has earned a consensus one-year price target of $71.91, above the opening price of $65.23. American Electric Power Co. stock has a 52-week high of $71.32. Downgrades are more common when analysts believe that the future prospects for the security have diminished from the initial recommendation, often because of a material and fundamental change in the company’s actions, future vision or industry.

U.S. stocks on Monday closed essentially flat, after trading firmly higher, in a volatile session ahead of the start of a pair of closely watched central-bank policy meetings.

The Dow Jones Industrial Average DJIA, -0.02% closed down 3.63 points at 18,120.17.

The blue-chip gauge had been up by as much as 131 points earlier and traded within a 162-point range.

The S&P 500 SPX, +0.00% slipped 0.04 points to close at 2,139.12, after trading within an 18-point range

Meanwhile, the Nasdaq Composite Index COMP, -0.18% declined 9.54 points, or 0.2%, to close at 5,235.03.

Earlier, the Nasdaq Composite Index had been up by as many as 37 points and traded with a 58-point range

Yesterday American Electric Power Co. (NYSE: AEP) shares last traded at $65.50, an increase of $0.08 over the previous closing price. Opening at $65.23, they fluctuated from $65.23 and $65.69 throughout the day.

American Electric Power Co. (NYSE: AEP) currently has a market cap of 32.21B.

The stock’s average daily volume is 2,385,390 shares out of a total float 491,620,000 and some 410,430 shares crossed the trading desk yesterday, 102 percent below the average. Swing traders often use increases in trading volume to determine heavy volume accumulation or circulation by institutional investors, so look for trading volume to pick up in the coming days.

While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a period of days or weeks expresses a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.

Traders are able to make make more effective judgments on trades when they track the activity of professional investors.

Trades for American Electric Power Co. (NYSE: AEP) have ranged from $53.30 – 71.32, and the stock now has a 50-day MA of $66.17 and 200-day MA of $66.17. Today’s last price is 0.08% lower than the 52 week high of $71.32.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more for a 3 year period.

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