American Equity Buy Hold or Sell Recommendation

AEL -- USA Stock  

USD 22.48  1.34  6.34%

Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding American Equity Investment Life is 'Hold'. Macroaxis provides American Equity buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AEL positions. The advice algorithm takes into account all of American Equity Inve available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from AEL buy-and-hold prospective. Check also American Equity Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for muliple equity instruments please use Instant Ratings tool.

Time Horizon

Risk Tolerance

Symbol
Execute Advice
Sell American EquityBuy American Equity
Hold

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

For the selected time horizon American Equity Investment Life has a risk adjusted performance of (0.23), jensen alpha of (0.37), total risk alpha of (0.30), sortino ratio of 0.0 and treynor ratio of (0.34)
Macroaxis buy, hold, or sell recommendation module can be used to complement current analysts and expert consensus on American Equity. Our buy, hold, or sell suggestion engine makes use of analyzes the corporation potential to grow using all fundamental data market data available at the time. To make sure American Equity is not overpriced, please confirm all American Equity Inve fundamentals including its Price to Book, Cash and Equivalents and the relationship between Shares Owned by Institutions and Gross Profit . Given that American Equity Inve has Number of Shares Shorted of 1.18M, we suggest you validate American Equity Investment Life market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

American Equity Trading Alerts and Improvement Suggestions

American Equity Inve generates negative expected return over the last 30 days
The company has 738.93M in debt with debt to equity (D/E) ratio of 21.1 . This implies that the company may be unable to create cash to meet all of its financial commitments. American Equity Inve has Current Ratio of 0.25 suggesting that it has not enough short term capital to pay financial commitments when the payables are due.
Over 96.0% of American Equity shares are held by institutions such as insurance companies

American Equity current analysts recommendations

Target Median Price29.00
Target Mean Price29.09
Recommendation Mean2.70
Target High Price32.00
Number Of Analyst Opinions11
Target Low Price25.00

American Equity Returns Distribution Density

Mean Return0.51Value At Risk5.04
Potential Upside2.02Standard Deviation2.12
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Blackrock IncCommon Shares13.3 M360.8 M
Vanguard Group IncCommon Shares10.7 M291.2 M
Dimensional Fund Advisors LpCommon Shares7.5 M203 M
Macquarie Group LtdCommon Shares4.3 M116.8 M
State Street CorpCommon Shares3.1 M84.2 M
Earnest Partners LlcCommon Shares2.6 M71.2 M
Northern Trust CorpCommon Shares2.3 M63.2 M

American Equity Greeks

α
Alpha over DOW
=0.37
β
Beta against DOW=1.54
σ
Overall volatility
=2.12
Ir
Information ratio =0.2

American Equity Volatility Alert

American Equity Investment Life exhibits very low volatility with skewness of -1.05 and kurtosis of 1.39. However, we advise investors to further study American Equity Investment Life technical indicators to make sure all market info is available and is reliable.
    
 Better Than Average     
    
 Worse Than Average Compare American Equity to competition

American Equity Fundamental Vs Peers

FundamentalsAmerican EquityPeer Average
Return On Equity7.15% (0.31)%
Return On Asset0.29% (0.14)%
Profit Margin8.64% (1.27)%
Operating Margin12.42% (5.51)%
Current Valuation1.57B16.62B
Shares Outstanding90.88M571.82M
Shares Owned by Insiders1.69% 10.09%
Shares Owned by Institutions96.11% 39.21%
Number of Shares Shorted1.18M4.71M
Price to Earning9.67X28.72X
Price to Book0.58X9.51X
Price to Sales0.83X11.42X
Revenue2.45B9.43B
Gross Profit(654.33M)27.38B
EBITDA304.53M3.9B
Net Income211.73M570.98M
Cash and Equivalents1.22B2.7B
Cash per Share13.37X5.01X
Total Debt738.93M5.32B
Debt to Equity21.10% 48.70%
Current Ratio0.25X2.16X
Book Value Per Share38.46X1.93K
Cash Flow from Operations1.25B971.22M
Short Ratio2.86X4.00X
Earnings Per Share2.31X3.12X
Price to Earnings To Growth0.55X4.89X
Number of Employees55418.84K
Beta1.39-0.15
Market Capitalization2.03B19.03B
Total Asset49.03B29.47B
Retained Earnings231.56M9.33B
Z Score1.28.72
Five Year Return0.94%
   Payment of 2000 shares by Renee Montz of American Equity subject to Rule 16b-3 [view details]
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