AEP · AMERICAN ELECTRIC POWER

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American Electric Power Company, Inc., an electric public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers in the United States. It operates through Vertically Integrated Utilities, Transmission and Distribution Utilities, AEP Transmission Holdco, and Generation & Marketing segments. The company generates electricity using coal and lignite, nuclear, natural gas, renewable, hydro, solar, wind, and other energy sources; owns, operates, maintains, and invests in transmission infrastructure; and engages in the retail supply, and wholesale energy trading and marketing businesses.

Close · 3M

-0.61%

Held by 1 AI ETF

LQAI0.640%

as of Jul 17

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals4

Win rate25% (1/4)

Avg buy return-1.23%

LQAInow 0.640% of fund4 signals

LQAI · Weight decrease · 2d

AEP’s PER of 20.14 and ROE of 11.84% represent a balanced profile, which aligns with LQAI’s core large-cap, AI-driven selection criteria that avoids heavy factor tilts, further supported by its 11.38% revenue growth. A consecutive weight decrease for AEP within LQAI, moving from 0.66% on July 7th to 0.63% by July 15th, occurred as the stock traded near $132.50, placing it at 96% of its 52-week high of $138.69. This specific de-emphasis by Qraft’s AI, which rebalances weekly, coincides with the utility’s 4.2% 30-day return. Considering LQAI’s strategy, positioned between broad market and concentrated momentum approaches, the AI likely recalibrated AEP's attractiveness, perceiving a slightly less compelling value proposition at this elevated price level relative to its peer universe. This adjustment reflects the AI’s ongoing process to optimize its ~100 US large-cap portfolio based on its continuous ranking of opportunities.

weight 0.650% → 0.630% (-0.020 pp)·stock up 2.5% in the 30 days before

Jul 15·entry $132.50·now $131.05

-1.09%

since Jul 15

LQAI · Weight increase · 2d

LQAI, which employs a Qraft AI ranking applied to a US large-cap core universe, selected AEP for inclusion, explaining the sudden appearance and subsequent consistent weighting. The fund’s weekly rebalance cadence allowed the AI engine to integrate AEP into the portfolio starting July 7th. AEP’s 1-year return of +30.7%, with the stock currently trading at 98% of its 52-week high, likely presented a positive price trend signal to the Qraft AI selection methodology. Additionally, the company’s 11.38% revenue growth would contribute to a favorable fundamental ranking within the AI’s core large-cap selection process. This positive assessment by the AI model led to AEP maintaining a consistent weight, oscillating between 0.63% and 0.66%, across several consecutive rebalances within the fund’s approximately 100 US large-cap holdings.

weight 0.630% → 0.650% (+0.020 pp)·stock up 5.5% in the 30 days before

Jul 13·entry $135.63·now $131.05Fresh

-3.38%

since Jul 13

LQAI · Weight decrease · 2d

LQAI has exhibited a consistent daily reduction in its AEP allocation, gradually decreasing from 0.66% to 0.63% across three consecutive rebalancing instances. This steady, rather than abrupt, adjustment is characteristic of the weekly rebalancing framework of the LG-Qraft collaboration’s AI engine, which manages a diversified portfolio of approximately 100 US large-cap names. With AEP currently trading at $135.43, just shy of its $138.69 52-week high and after a significant +6.0% 30-day price movement, the Qraft AI is likely optimizing its holdings. The AI's ranking system is subtly decreasing exposure to the utility, even with its 11.38% revenue growth and 11.84% ROE, suggesting a re-evaluation of its attractiveness within the core large-cap universe at its current valuation and price elevation. This action reflects LQAI's approach to AI-driven name selection, which navigates between broad market representation and more concentrated, adaptive shifts without a heavy factor tilt.

weight 0.660% → 0.630% (-0.030 pp)·stock up 5.6% in the 30 days before

Jul 9·entry $133.85·now $131.05

-2.09%

since Jul 9

LQAI · New entry · 1d

AEP's entry into LQAI was a distinct, single-step move, initiated on July 7th with an allocation of 0.66% after weeks of no position, consistent with the ETF's weekly rebalancing framework. This allocation occurred while AEP trades at $137.53, near 99% of its 52-week high, indicating the Qraft AI's assessment goes beyond solely chasing recent momentum peaks. For LQAI's core large-cap strategy, which avoids heavy factor tilts and blends broad market characteristics with more concentrated selection, the AI likely weighed AEP's year-long price appreciation of 33.2% alongside its substantial 11.38% revenue growth and 11.84% ROE. The AI's balanced approach allowed for the inclusion of a Utilities company demonstrating both sustained market performance and underlying financial strength, rather than a singular focus on valuation or aggressive momentum.

weight 0 → 0.660% (new)·stock up 7.6% in the 30 days before

Jul 7·entry $137.53·now $131.05Fresh

-4.71%

since Jul 7

AIEQno longer held2 signals

AIEQ · Exit · 1d

The gradual accumulation of American Electric Power shares by AIEQ in late June, building its weight to 0.20%, suggests the IBM Watson NLP engine initially detected favorable fundamental or sentiment signals for the utility stock as it approached 97% of its 52-week high after a 33.4% annual return. However, the subsequent complete divestment of AEP on July 1st, despite its recent price strength, indicates a swift and significant shift in the daily ranking derived from AIEQ's analysis of news, filings, or social posts. This abrupt removal underscores the fund's dynamic, sentiment-sensitive strategy and high-turnover nature, where EquBot's risk overlay promptly liquidates positions when underlying data suggests a reversal for a stock like AEP. The move reflects AIEQ's rapid adjustment capability, moving entirely out of the position based on the latest input.

weight 0.200% → 0 (exited)·stock up 9.1% in the 30 days before

Jul 1·entry $135.05·now $131.05

-2.96%

since Jul 1

AIEQ · New entry · 1d

weight 0 → 0.180% (new)·stock down 5.8% in the 30 days before

May 30·entry $123.79·now $131.05Drifting

+5.86%

since May 30

QRFTno longer held2 signals

QRFT · Exit · 1d

Qraft Technologies' AI, which manages the QRFT fund by combining traditional factors with proprietary alternative-data overlays, initiated the removal of American Electric Power from its portfolio of approximately 300 US large caps. The system, known for its weekly rebalances, gradually reduced AEP's weight from 0.15% to 0.14% before fully exiting by 2026-06-02, a dynamic pattern indicative of its continuous evaluation. This divestment suggests that despite AEP’s 90-day return of +9.0%, the recent 30-day return of -3.6% signaled a deterioration in its AI-driven factor appeal relative to other available large-cap opportunities. The stock’s position near 93% of its 52-week high, coupled with this short-term decline, may have triggered a re-evaluation across the fund’s diverse factor spectrum, affecting its suitability for the broad large-cap core style.

weight 0.140% → 0 (exited)·stock down 7.2% in the 30 days before

Jun 2·entry $127.11·now $131.05

+3.10%

since Jun 2

QRFT · New entry · 1d

The AI ETF likely initiated a new position in AEP due to its robust 10.98% revenue growth, a strong performance indicator for the typically stable utilities sector, alongside a solid 12.04% ROE. Retail investors should note that AI models prioritize companies demonstrating superior growth and efficiency within their sectors, suggesting a need to evaluate individual stock fundamentals rather than just sector trends.

weight 0 → 0.160% (new)·stock up 1.5% in the 30 days before

May 4·entry $134.66·now $131.05Fresh

-2.68%

since May 4

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of Jul 5

AI ETF AIEQ has recently exited AMERICAN ELECTRIC POWER, reducing its weight to zero. This action aligns with the framework's 'Fail' verdict, suggesting the AI's assessment of the company's investment merits, potentially related to its financial health or valuation, also led to a divestment decision.

Circle of CompetenceAs a regulated electric utility, AMERICAN ELECTRIC POWER's unit economics are generally stable and predictable, allowing for reasonable projection of ten-year cash flows.
Economic MoatThe company benefits from a strong economic moat derived from its status as a regulated monopoly within its service territories, creating high switching costs and regulatory entitlements.
ManagementInformation on management's candor, capital allocation discipline, or skin in the game is not provided in the available data to make a definitive assessment.
Financial HealthThe reported ROE of 11.84% does not meet the framework's criterion of a 10-year average ROE of 15% or higher, indicating a clear failure in financial health.
Margin of SafetyWithout a conservative estimate of intrinsic value, it is not possible to determine if the current price offers a defensible margin of safety.

AMERICAN ELECTRIC POWER demonstrates predictable earning power within the circle of competence and possesses a durable economic moat as a regulated utility. However, the company fails the financial health stage due to its reported ROE falling short of the required threshold. Given the inability to fully assess management or establish a margin of safety, the overall investment thesis does not meet the rigorous framework criteria.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.