Investors Purchase Large Volume of Put Options on American Equity Investment Life (AEL)

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American Equity Investment Life Holding (NYSE:AEL) was the target of some unusual options trading on Monday. Stock investors purchased 2,300 put options on the company. This represents an increase of 2,849% compared to the average volume of 78 put options.

Shares of NYSE AEL opened at $30.84 on Tuesday. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.30. American Equity Investment Life has a fifty-two week low of $27.06 and a fifty-two week high of $38.56. The company has a market capitalization of $2.77 billion, a PE ratio of 9.76 and a beta of 2.54.

American Equity Investment Life (NYSE:AEL) last issued its quarterly earnings results on Monday, August 6th. The financial services provider reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.10. American Equity Investment Life had a return on equity of 12.32% and a net margin of 11.14%. The firm had revenue of $685.50 million for the quarter, compared to the consensus estimate of $589.40 million. During the same period in the prior year, the business posted $0.71 earnings per share. The company’s revenue for the quarter was down 16.3% on a year-over-year basis. On average, equities research analysts anticipate that American Equity Investment Life will post 3.56 earnings per share for the current year.

A number of equities research analysts have issued reports on the company. ValuEngine downgraded American Equity Investment Life from a “buy” rating to a “hold” rating in a research report on Monday, July 16th. Sandler O’Neill restated a “buy” rating and set a $41.00 price objective on shares of American Equity Investment Life in a research report on Friday, July 13th. Finally, Royal Bank of Canada set a $38.00 price objective on American Equity Investment Life and gave the company a “buy” rating in a research report on Wednesday, August 8th. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the company’s stock. The company presently has an average rating of “Buy” and an average price target of $36.17.

Several hedge funds and other institutional investors have recently modified their holdings of AEL. Xact Kapitalforvaltning AB raised its holdings in shares of American Equity Investment Life by 47.2% in the first quarter. Xact Kapitalforvaltning AB now owns 12,167 shares of the financial services provider’s stock worth $357,000 after buying an additional 3,900 shares during the period. Principal Financial Group Inc. raised its holdings in shares of American Equity Investment Life by 56.1% in the first quarter. Principal Financial Group Inc. now owns 1,158,624 shares of the financial services provider’s stock worth $34,018,000 after buying an additional 416,514 shares during the period. Vigilant Capital Management LLC purchased a new stake in shares of American Equity Investment Life in the second quarter worth approximately $112,000. Municipal Employees Retirement System of Michigan raised its holdings in shares of American Equity Investment Life by 13.5% in the second quarter. Municipal Employees Retirement System of Michigan now owns 40,760 shares of the financial services provider’s stock worth $1,467,000 after buying an additional 4,860 shares during the period. Finally, James Investment Research Inc. raised its holdings in shares of American Equity Investment Life by 3.6% in the second quarter. James Investment Research Inc. now owns 129,688 shares of the financial services provider’s stock worth $4,669,000 after buying an additional 4,521 shares during the period. Hedge funds and other institutional investors own 93.71% 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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