American Equity Investment Life Receives a Buy from J.P. Morgan

By Jason Carr

J.P. Morgan analyst Pablo Singzon reiterated a Buy rating on American Equity Investment Life (NYSE: AEL) today and set a price target of $20. The company’s shares opened today at $18.82.

Currently, the analyst consensus on American Equity Investment Life is Moderate Buy and the average price target is $20, representing a 6.3% upside.

In a report issued on November 4, Sandler O’Neill also upgraded the stock to Buy.

Based on American Equity Investment Life’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $529 million and GAAP net loss of $7.42 million. In comparison, last year the company earned revenue of $484 million and had a net profit of $97.31 million.

Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is neutral on the stock. Most recently, in July 2016, Ronald James Grensteiner, the VP of AEL bought 1,770 shares for a total of $24,922.

American Equity Investment Life Holding Co. engages in the provision of insurance and annuity. It involves in the sale of fixed index and fixed rate annuities as well as life, and health insurance. The company was founded by David J. Noble on December 15, 1995 and is headquartered in West Des Moines, IA.