Big Money Move: Institution Loads the Boat With Utility Stock to the Tune of $5.6 Million
Key Points
Acquired 49,451 shares of American Electric Power Company; estimated trade value of $5.56 million
Post-trade stake: 49,451 shares valued at $5.56 million
American Electric Power Company is not among Regency Capital’s top five holdings by portfolio weighting
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Regency Capital Management Inc. disclosed a new stake in American Electric Power Company (NASDAQ:AEP) on October 20, 2025, acquiring 49,451 shares in a trade estimated at $5.56 million (based on a reported position value of $5,563,238 as of September 30, 2025).
What Happened
According to a filing with the Securities and Exchange Commission dated October 20, 2025, Regency Capital Management Inc. established a new position in American Electric Power Company. The firm reported owning 49,451 shares valued at $5.56 million as of September 30, 2025, equivalent to 2.65% of its reportable U.S. equity assets under management as of September 30, 2025. This stake was not present in the prior quarter’s disclosure.
What Else to Know
The new position in American Electric Power Company represents 2.65% of Regency Capital’s 13F assets under management
Top holdings after the filing:
- BRK-B: $15.20 million (7.2% of AUM) as of September 30, 2025
- MKL: $13.05 million (6.2% of AUM) as of September 30, 2025
- COST: $13.02 million (6.2% of AUM) as of September 30, 2025
- IAU: $12.57 million (6.0% of AUM) as of September 30, 2025
- CB: $11.26 million (5.4% of AUM) as of September 30, 2025
As of October 20, 2025, shares of American Electric Power Company were priced at $117.82, up 17.6% over the year ending October 20, 2025; shares have outperformed the S&P 500 by 5.75 percentage points over the year ending October 20, 2025.
The company’s dividend yield stood at 3.16% as of October 21, 2025.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $20.92 billion |
| Net Income (TTM) | $3.72 billion |
| Dividend Yield | 3.16% |
| Price (as of market close 10/20/25) | $117.82 |
Company Snapshot
American Electric Power Company, Inc. is a regulated electric utility in the United States with a significant presence in power generation, transmission, and distribution. The company uses a diversified energy mix and integrated infrastructure to deliver electricity to retail and wholesale customers.
The company provides electricity generation, transmission, and distribution services, with revenue primarily from regulated electric utility operations. It operates a vertically integrated business model, generating power from diverse sources and delivering it directly to retail and wholesale customers.
American Electric Power Company serves residential, commercial, industrial, and wholesale customers across the United States, including municipalities and electric cooperatives.
Foolish Take
Regency Capital Management, an investment management company based in Hawaii, recently disclosed a purchase of nearly $5.6 million worth of American Electric Power (AEP) stock. Retail investors may want to take note of this transaction -- here's why.
To start, American Electric Power stock is now Regency's 12th-largest holding, out of a total of 58 total stock and ETF positions. Consequently, Regency is placing a big bet on AEP. The position equates to about 2.7% of total assets under management, and given that the company held no shares of AEP at the end of the second quarter, the rate of accumulation is impressive.
Second, by loading up on AEP stock, Regency is betting on something else: The rise of artificial intelligence (AI). Many new data centers are under construction to meet the growing demand for AI computing. In turn, power providers are facing increased demand for electricity from the power-hungry data centers. AEP, which is one of the largest electricity suppliers in the U.S., stands to benefit from this cycle.
In summary, retail investors may want to take a page from this institutional purchase. With AI and data center growing like a weed, electricity demand is through the roof. That's great news for utility providers like AEP, and it could result in substantial growth moving forward.
Glossary
13F assets under management: The value of U.S. equity securities reported by institutional investment managers in quarterly SEC Form 13F filings.
Portfolio weighting: The percentage of a portfolio's total value allocated to a specific investment or asset.
Dividend yield: Annual dividends paid by a company divided by its share price, shown as a percentage.
Vertically integrated: A business model where a company controls multiple stages of its supply chain, from production to distribution.
Regulated electric utility: A company providing electricity services whose rates and operations are overseen by government agencies.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Reportable position: An investment holding that must be disclosed in regulatory filings due to its size or significance.
Stake: The ownership interest or number of shares held in a company by an investor or institution.
Outperforming: Achieving a higher return or better performance than a benchmark or comparable group.
Assets under management (AUM): The total market value of investments managed by a financial institution or fund manager.
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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Costco Wholesale, and Markel Group. The Motley Fool has a disclosure policy.
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