What’s Ahead for American Equity Investment Life Holding Company (AEL) After Forming Bearish Wedge Down Chart Pattern?

May 18, 2018 - By Donald McKee

American Equity Investment Life Holding Company (NYSE:AEL) Logo

Investors sentiment increased to 1.86 in 2017 Q4. Its up 0.60, from 1.26 in 2017Q3. It improved, as 13 investors sold American Equity Investment Life Holding Company shares while 57 reduced holdings. 47 funds opened positions while 83 raised stakes. 80.86 million shares or 0.77% less from 81.49 million shares in 2017Q3 were reported.
Regions Fincl holds 566 shares or 0% of its portfolio. Dreman Value Mgmt L L C has invested 0.02% of its portfolio in American Equity Investment Life Holding Company (NYSE:AEL). Tiaa Cref Investment Mgmt Lc reported 0.01% of its portfolio in American Equity Investment Life Holding Company (NYSE:AEL). Brandywine Glob Investment Mngmt Ltd Liability Com holds 0.05% of its portfolio in American Equity Investment Life Holding Company (NYSE:AEL) for 280,335 shares. Shelton Cap Management invested in 0.02% or 7,996 shares. Raymond James And stated it has 0% in American Equity Investment Life Holding Company (NYSE:AEL). Hillsdale Management owns 43,942 shares. Ny State Common Retirement Fund has 0.02% invested in American Equity Investment Life Holding Company (NYSE:AEL). Geode Capital Mgmt Llc stated it has 0.01% of its portfolio in American Equity Investment Life Holding Company (NYSE:AEL). State Of Tennessee Treasury Department has invested 0.01% in American Equity Investment Life Holding Company (NYSE:AEL). Bridgeway Cap owns 184,200 shares. Jacobs Levy Equity Mngmt Inc invested 0.1% in American Equity Investment Life Holding Company (NYSE:AEL). Captrust Fincl reported 373 shares stake. Moreover, Sei Invs has 0.01% invested in American Equity Investment Life Holding Company (NYSE:AEL). First Trust Advisors L P holds 0% of its portfolio in American Equity Investment Life Holding Company (NYSE:AEL) for 46,963 shares.

Since February 21, 2018, it had 0 buys, and 4 selling transactions for $5.52 million activity. Clark Alexander Meeker also sold $81,863 worth of American Equity Investment Life Holding Company (NYSE:AEL) on Wednesday, February 21. $1.44 million worth of stock was sold by Grensteiner Ronald James on Friday, March 23. Another trade for 20,000 shares valued at $637,002 was sold by MATOVINA JOHN M.

The stock of American Equity Investment Life Holding Company (AEL) formed a down wedge with $27.26 target or 6.00 % below today’s $29.00 share price. The 8 months wedge indicates high risk for the $2.61B company. If the $27.26 price target is reached, the company will be worth $156.78M less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock increased 1.61% or $0.46 during the last trading session, reaching $29. About 442,408 shares traded. American Equity Investment Life Holding Company (NYSE:AEL) has risen 26.66% since May 18, 2017 and is uptrending. It has outperformed by 15.11% the S&P500.

Analysts await American Equity Investment Life Holding Company (NYSE:AEL) to report earnings on August, 1. They expect $0.85 earnings per share, up 19.72 % or $0.14 from last year’s $0.71 per share. AEL’s profit will be $76.59 million for 8.53 P/E if the $0.85 EPS becomes a reality. After $0.85 actual earnings per share reported by American Equity Investment Life Holding Company for the previous quarter, Wall Street now forecasts 0.00 % EPS growth.

American Equity Investment Life Holding Company (NYSE:AEL) Ratings Coverage

Among 5 analysts covering American Equity Investment Life Holding Co (NYSE:AEL), 2 have Buy rating, 1 Sell and 2 Hold. Therefore 40% are positive. American Equity Investment Life Holding Co has $38.0 highest and $26 lowest target. $34.20’s average target is 17.93% above currents $29 stock price. American Equity Investment Life Holding Co had 8 analyst reports since December 6, 2017 according to SRatingsIntel. The firm earned “Hold” rating on Thursday, December 21 by Keefe Bruyette & Woods. Keefe Bruyette & Woods maintained it with “Hold” rating and $3400 target in Wednesday, April 11 report. The stock has “Buy” rating by RBC Capital Markets on Thursday, February 8. The company was maintained on Friday, December 8 by RBC Capital Markets. SunTrust maintained American Equity Investment Life Holding Company (NYSE:AEL) rating on Thursday, February 8. SunTrust has “Buy” rating and $38.0 target. FBR Capital maintained the stock with “Hold” rating in Wednesday, February 7 report.

More news for American Equity Investment Life Holding Company (NYSE:AEL) were recently published by: Globenewswire.com, which released: “Report: Developing Opportunities within Crown, American Equity Investment Life Holding, Acco Brands, Synthetic …” on May 14, 2018. Seekingalpha.com‘s article titled: “American Equity Investment Life Holding’s (AEL) CEO, John Matovina on Q1 2018 Results – Earnings Call Transcript” and published on May 03, 2018 is yet another important article.

American Equity Investment Life Holding Company, through its subsidiaries, develops and sells fixed index and fixed rate annuity products in the United States. The company has market cap of $2.61 billion. It issues fixed index annuities and fixed rate annuities, as well as single premium immediate annuities. It has a 15.03 P/E ratio. The firm also offers life insurance products comprising traditional ordinary and term, universal life, and other interest-sensitive life insurance products.

American Equity Investment Life Holding Company (NYSE:AEL) Institutional Positions Chart

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