Home Sectors Financial Services Current Technicals: American Equity Investment Life Holding Company (NYSE: AEL)

Current Technicals: American Equity Investment Life Holding Company (NYSE: AEL)


American Equity Investment Life Holding Company is in the life insurance industry and is in the financial services sector. The company CEO is John M. Matovina. American Equity Investment Life Holding Co is engaged in the development and sale of fixed index and fixed rate annuity products. The company through its wholly-owned life insurance subsidiaries issues fixed annuity and life insurance products.

Previous Intraday Trading Performance:

The AEL stock showed a previous change of 0.00% with an open at 30.06 and a close of 29.90. It reached an intraday high of 30.34 and a low of 29.89.

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The stock has a market cap of $2.7b with 90.5m shares outstanding, of which the float is 87.0m shares. Trading volume reached 255,285 shares compared to its average volume of 395,470 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, American Equity Investment Life Holding Company shares returned 0.00% and in the past 30 trading days it returned -2.29%. Over three months, it changed 1.60%. In one year it has changed -8.43% and within that year its 52-week high was 38.57 and its 52-week low was 25.27. AEL stock is 18.32% above its 52 Week Low.

Our calculations show a 200 day moving average of 33.38 and a 50 day moving average of 30.72. Currently AEL stock is trading -10.41% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 5.02 that ended on 31st of December 2018, which according to the previous close, that is a PE of 5.96. Based on 3 analyst estimates, the consensus EPS for the next quarter is 0.90. The TTM EPS is 3.78, which comes to a TTM PE of 7.91. Historically, the PE high was 33.90 and the PE low was 4.70. If the stock reached its PE low, that would represent a price of 17.77, which is a decrease of -40.58%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.99
09-30-2018:  0.99
06-30-2018:  0.95
03-31-2018:  0.85

The dividend per share is currently 0.28, which is a dividend yield of 0.94%. Also, the payout ratio is 7.41%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 58.42, which means it is possibly undervalued and has a margin of safety of 48.82%

Indicators to Watch:

Based on the latest filings, there is 147.10% of institutional ownership. Short-interest is 1,682,843, which is 1.86% of shares outstanding. The short-interest ratio or days-to-cover ratio is 4.03. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 2.30

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 17.87%, return on assets is 0.76%, profit margin is 15.79%, price-to-sales is 0.92 and price-to-book is 1.13.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 4  :Past Performance Score
 3  :Financial Strength Score
 1  :Future Growth Score
 4  :Dividend Score
 3  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.