Checking the Overall Picture for American Equity Investment Life Holding Company (AEL)

American Equity Investment Life Holding Company (NYSE:AEL) is an interesting player in the Financial space, with a focus on Life Insurance. The stock has been active on the tape, currently trading at $22.87, up from yesterday’s close by -1.08%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. American Equity Investment Life Holding Company (AEL) currently trades with a market capitalization of $2.01B. That value represents a market adjusting for revenues that have been growing by 386.70% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For AEL, the company currently has $813.12M of cash on the books, which is offset by $740.14M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $1.41B over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of 0.56 on a per share basis this quarter. Perhaps, that suggests something about why 90.10% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how has been acting. Looking at the stock’s movement on the chart, American Equity Investment Life Holding Company recorded a 52-week high of 23.45. It is now trading 0.33 off that level. The stock is trading 22.20 its 50-day moving average by -0.92. The stock carved out a 52-week low down at 12.65.

In recent action, American Equity Investment Life Holding Company (AEL) has made a move of +1.55% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 1.03, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 83.19M with 2.43% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of AEL.

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