American Equity Investment Life (AEL) Cut to “Hold” at Zacks Investment Research

American Equity Investment Life (NYSE:AEL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday.

According to Zacks, “American Equity Investment Life Holding Company, through its wholly-owned operating subsidiaries, is a full service underwriter of a broad line of annuity and insurance products, with a primary emphasis on the sale of fixed rate and index annuities. “

AEL has been the subject of several other reports. ValuEngine upgraded shares of American Equity Investment Life from a “hold” rating to a “buy” rating in a report on Tuesday, May 22nd. UBS Group upgraded shares of American Equity Investment Life from a “sell” rating to a “neutral” rating in a report on Friday, May 4th. Five research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. American Equity Investment Life has a consensus rating of “Hold” and a consensus target price of $32.71.

NYSE AEL traded down $0.37 on Tuesday, hitting $35.83. The stock had a trading volume of 20,030 shares, compared to its average volume of 853,547. American Equity Investment Life has a one year low of $24.51 and a one year high of $37.16. The company has a current ratio of 0.11, a quick ratio of 0.11 and a debt-to-equity ratio of 0.29. The stock has a market cap of $3.28 billion, a price-to-earnings ratio of 11.34 and a beta of 2.48.

American Equity Investment Life (NYSE:AEL) last posted its earnings results on Wednesday, May 2nd. The financial services provider reported $0.85 EPS for the quarter, topping the consensus estimate of $0.84 by $0.01. American Equity Investment Life had a net margin of 8.49% and a return on equity of 11.22%. The firm had revenue of $510.78 million during the quarter, compared to analysts’ expectations of $514.11 million. During the same quarter in the prior year, the firm earned $0.66 EPS. equities research analysts expect that American Equity Investment Life will post 3.43 earnings per share for the current fiscal year.

In related news, insider Ronald James Grensteiner sold 47,750 shares of the firm’s stock in a transaction that occurred on Monday, March 26th. The shares were sold at an average price of $30.20, for a total transaction of $1,442,050.00. Following the completion of the sale, the insider now directly owns 122,792 shares in the company, valued at $3,708,318.40. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 1.90% of the company’s stock.

A number of large investors have recently modified their holdings of AEL. BlackRock Inc. lifted its position in shares of American Equity Investment Life by 1.0% in the 4th quarter. BlackRock Inc. now owns 8,650,523 shares of the financial services provider’s stock valued at $265,830,000 after acquiring an additional 87,001 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of American Equity Investment Life by 0.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 7,569,688 shares of the financial services provider’s stock valued at $222,246,000 after acquiring an additional 25,141 shares in the last quarter. Earnest Partners LLC lifted its position in shares of American Equity Investment Life by 1.5% in the 1st quarter. Earnest Partners LLC now owns 2,661,076 shares of the financial services provider’s stock valued at $78,129,000 after acquiring an additional 39,246 shares in the last quarter. Northern Trust Corp lifted its position in shares of American Equity Investment Life by 5.5% in the 1st quarter. Northern Trust Corp now owns 2,311,438 shares of the financial services provider’s stock valued at $67,864,000 after acquiring an additional 121,431 shares in the last quarter. Finally, Prudential Financial Inc. lifted its position in shares of American Equity Investment Life by 99.8% in the 1st quarter. Prudential Financial Inc. now owns 2,029,858 shares of the financial services provider’s stock valued at $59,596,000 after acquiring an additional 1,013,993 shares in the last quarter. Hedge funds and other institutional investors own 93.45% of the company’s stock.

American Equity Investment Life Company Profile

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States. The company issues fixed index and rate annuities; and single premium immediate annuities, as well as life insurance products. The company markets its products through various distribution channels, including national marketing organizations, broker/dealers, banks, and registered investment advisors.

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