Is American Equity Investment Life Holding Company (NYSE: AEL) Back In The Buying Zone?


    BlackRock Fund Advisors recently announced the acquisition of new stake in American Equity Investment Life Holding Company (NYSE:AEL). The institutional investor has increased its shareholding in the Financial company by 4.44% to 12.38 million shares with purchase of 0.53 million shares. This fresh investment now brings its stake to 13.53% valued currently at $306.0 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.18 million to 10.68 million shares. And Macquarie Investment Management B. has lifted its position by 8.23% or 0.47 million shares – to 6.15 million shares.

    With over 0.76 million American Equity Investment Life Holding Company (AEL) shares trading Wednesday and a closing price of $25.65 on the day, the dollar volume was approximately $19.62 million. The shares have shown a positive weekly performance of 10.66% and its price on 07/15/20 gained nearly 5.38%. Currently, there are 91.64M common shares owned by the public and among those 85.41M shares have been available to trade.

    Incidentally, analysts’ outlook for the American Equity Investment Life Holding Company stock is 2.80 for the next 12 months.

    Insiders at the company have transacted a total of 66 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 36 of these insider trades were purchases, accounting for 327,322 shares. Insider sales of the common stock occurred on 30 occasions, with total insider shares sold totaling 153,865 shares.

    The top 3 mutual fund holders in American Equity Investment Life Holding Company are iShares Core S&P Small Cap ETF, DFA US Small Cap Value Portfolio, and Vanguard Total Stock Market Index. iShares Core S&P Small Cap ETF owns 5.5 million shares of the company’s stock, all valued at over $135.97 million. The company bought an additional 81427.0 shares recently to bring their total holdings to about 6.01% of the shares outstanding. DFA US Small Cap Value Portfolio bought 76825.0 shares to see its total holdings expand to 3.33 million shares valued at over $82.35 million and representing 3.64% of the shares outstanding. Vanguard Total Stock Market Index sold 42520.0 shares to bring its total holdings to over 2.59 million shares at a value of $64.05 million. Vanguard Total Stock Market Index now owns shares totaling to 2.83% of the shares outstanding.

    Shares of American Equity Investment Life Holding Company (NYSE: AEL) opened at $25.55, up $1.21 from a prior closing price of $24.34. However, the script later closed the day at $25.65, up 5.38%. The company’s stock has a 5-day price change of 10.66% and 32.90% over the past three months. AEL shares are trading -14.30% year to date (YTD), with the 12-month market performance down to -4.96% lower. It has a 12-month low price of $9.07 and touched a high of $34.16 over the same period. Currently, 0.76 million shares have been traded, compared to an average intraday trading volume of 789.51K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 10.76%, 16.59%, and 4.95% respectively.

    Institutional ownership of American Equity Investment Life Holding Company (NYSE: AEL) shares accounts for 99.30% of the company’s 91.64M shares outstanding. Mutual fund holders own 37.88%, while other institutional holders and individual stakeholders account for 59.76% and 12.15% respectively.

    It has a market capitalization of $2.25B and a beta (3y monthly) value of 1.76. The stock’s trailing 12-month PE ratio is 4.60, while the earnings-per-share (ttm) stands at $5.57. The company has a PEG of 0.46 and the debt-to-equity ratio at 0.16. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.67% over the week and 5.89% over the month.

    Analysts forecast that American Equity Investment Life Holding Company (AEL) will achieve an EPS of $1.13 for the current quarter, $1.11 for the next quarter and $4.73 for 2021. The lowest estimate earnings-per-share for the quarter is $0.75 while analysts give the company a high EPS estimate of $1.25. Comparatively, EPS for the current quarter was $1.09 a year ago. Earnings per share for the fiscal year are expected to decrease by -46.50%, and -5.47% over the next financial year. EPS should shrink at an annualized rate of 10.00% over the next five years, compared to 11.20% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 10 brokerage firm advisors rate American Equity Investment Life Holding Company (AEL) as a “Moderate Buy” at a consensus score of 2.80. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 8 of the 10 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the AEL, a number of firms have released research notes about the stock. Piper Sandler stated their Neutral rating for the stock in a research note on July 02, 2020, with the firm’s price target at $27-$25. RBC Capital Mkts coverage for the American Equity Investment Life Holding Company (AEL) stock in a research note released on March 20, 2020 offered a Sector Perform rating with a price target of. Piper Sandler was of a view on March 10, 2020 that the stock is Overweight, while Sandler O’Neill gave the stock Hold rating on April 30, 2019, issuing a price target of. B. Riley FBR Inc. on their part issued Neutral rating on December 06, 2017.


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