American Equity Investment Life Holding Company stock trades under the ticker AEL & has shown recent bullish behavior that traders & investors should take a closer look into.
AEL stock closed at $39.11/share on 4/18/2022.
American Equity Investment Life Holding Company AEL Stock’s Technicals Broken Down
AEL Stock Price: $39.11
10 Day Moving Average: $38.21
50 Day Moving Average: $39.36
200 Day Moving Average: $35.41
RSI: 51.55
MACD: -0.231
Yesterday, AEL stock completed a bullish MACD crossover, trading on about average volume compared to the year prior, on a day that was light trading volume across the S&P 500.
Their share price tested their 50 day moving average, but was unable to close above it & their RSI is still neutral at 51.6.
They need to re-test & break above the $39.46, $39.65 & $40.43/share resistance levels.
American Equity Investment Life Holding AEL Stock As A Long-Term Investment
Long-term oriented investors will find AEL stock’s valuation metrics appealing, with an 8.6 P/E (ttm) & a 0.6 P/B (mrq).
AEL stock has recently reported 7.7% Quarterly Revenue Growth Y-o-Y, with 956.4% Quarterly Earnings Growth Y-o-Y.
Investors should be especially fond of AEL stock’s balance sheet, where they have $4.51B in Total Cash (mrq), with only $574.7M in Total Debt (mrq).
AEL stock pays a modest 0.87% dividend yield, which looks sustainable in the long run, as their payout ratio is only 7.5%.
American Equity Investment Life Holding AEL Stock As A Short-Term Trade Using Options
Short-term oriented traders can use options to profit from price movements in AEL stock.
I am looking at the contracts with the 5/20 expiration date.
The $30, $35 & $40 call options all look appealing, but are rather low in liquidity as their total Open Interest is 122.
The $40, $45 & $50 puts also look good, but suffer from similar low levels of open interest, which may put off some traders.
Tying It All Together
All-in-all, AEL stock is worth taking a closer look at to see if it fits into your portfolio strategy.
Investors will like their valuation & balance sheet, but may be disappointed by their low dividend yield (although it is stable).
Traders will like their current technicals, but will be disappointed by their low liquidity levels.
AEL stock is worth further research, regardless of how your trade or invest.
*** I DO NOT OWN SHARES OF AEL STOCK AT THE TIME OF WRITING THIS POST ***