Amidst the uncertain and volatile financial times of today, investment strategies and portfolio structuring have become increasingly important. A recent report by the Securities and Exchange Commission (SEC) reveals that New York State Common Retirement Fund has grown its holdings in American Equity Investment Life Holding by 11.4% in the fourth quarter, making waves in the market.
According to the report, New York State Common Retirement Fund now owns 79,412 shares of American Equity Investment Life Holding after purchasing an additional 8,105 shares during the quarter. This new acquisition has led to the institutional investor owning approximately 0.09% of American Equity Investment Life’s worth which is estimated to be around $3,623,000 at the end of the current reporting period.
American Equity Investment Life Holding Co specializes in fixed index, fixed rate annuity products portfolios that focus on commercial mortgage loans, agricultural mortgage loans, and residential mortgage loans among others. The company was founded by David J Noble on December 15th, 1995 and has been headquartered in West Des Moines since then.
The financial services provider posted their earnings results on Friday last week with $0.79 earnings per share (EPS) for the quarter against a consensus estimate of $0.96 showing a decrease of ($0.17). The company earned revenues amounting to $654.45 million during this period compared to analyst estimates of $652.84 million; these numbers reveal a 41% YoY decrease in revenue for this quarter with an overall net margin of 86.25%.
Despite these number trends and market performance signals from American Equity Investment Life Holding Co., famed equity research analysts anticipate brighter days ahead this year as they expect them to post earnings per share figures projected at about $5.21 for fiscal year-end.
In conclusion, there are possibilities for opportunities in such reported developments across all markets more so when strategic investors like New York State Common Retirement Fund are involved. With these projections in mind, industry experts remain optimistic about the potential of the market and continue to extrapolate classic advice: invest today, reap the rewards tomorrow.
Large Investors Modify Stockholdings in American Equity Investment Life Holding Co, Despite Criticisms and Lower Prices
American Equity Investment Life Holding Co has had significant changes in its stockholding, with several large investors modifying their stake. This includes BlackRock Inc., Macquarie Group Ltd., State Street Corp, Invesco Ltd. and Charles Schwab Investment Management Inc. Between them, they now own 94.03% of the company’s stock, or shares worth $3.15 billion. However, despite this investment, AEL opened on Wednesday at $37.13, lower than its 1 year high of $48.37. The company is a financial services provider that specializes in fixed index and fixed rate annuity products for commercial mortgage loans, agricultural mortgage loans and residential mortgage loans. In April 2017 it had a market cap of $3.15 billion with a P/E ratio of 2.98 and a beta of 0.88.
There have been criticisms from analysts about AEL performance with Piper Jaffray Companies downgrading shares to neutral for being overweight but boosting target price from $45 to $48 . Morgan Stanley dropped target price from $48 to $43 and set an “equal weight” rating on the stock while StockNews.com applied a hold rating on the stock adding that eight equity research analysts have rated the stock as ‘hold’. Based on data compiled by Bloomberg.com American Equity Investment Life Holding Co was assigned an average price target of $44 .40.
Director Alan David Matula recently bought over 7k shares of AEL at an average cost per share of $35 .50 thus holding roughly about 1% percent of its outstanding units.Across all institutional investors they raised their shareholdings through acquisitions over the last quarter.This indicates that American Equity Investment Life Holding Co is still attractive on the market even given lower prices.American Equity Investor Life continues to diversify into innovative areas inorder to turn around tougher times.The firm focuses on insuring those who seek ‘peace of mind” through competitive annuity products.