Reynolds American Inc. (NYSE:RAI)‘s stock had its “buy” rating reaffirmed by stock analysts at Citigroup Inc. in a research report issued on Monday. They presently have a $57.00 price objective on the stock. Citigroup Inc.’s target price indicates a potential upside of 19.02% from the stock’s previous close.
A number of other brokerages have also recently weighed in on RAI. Credit Agricole SA upgraded Reynolds American from an “underperform” rating to an “outperform” rating and upped their price objective for the stock from $52.00 to $54.00 in a research note on Monday, August 8th. They noted that the move was a valuation call. Goldman Sachs Group Inc. reiterated a “buy” rating and issued a $57.00 price target (up from $55.00) on shares of Reynolds American in a research note on Friday, July 15th. Vetr upgraded Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 price target for the company in a research note on Thursday, September 8th. Cowen and Company reiterated an “outperform” rating and issued a $57.00 price target on shares of Reynolds American in a research note on Tuesday, August 16th. Finally, Berenberg Bank started coverage on Reynolds American in a research note on Tuesday, June 14th. They issued a “hold” rating and a $54.00 price target for the company. Four analysts have rated the stock with a hold rating, eight have issued a buy rating and two have assigned a strong buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus target price of $55.86.
Reynolds American (NYSE:RAI) opened at 47.89 on Monday. The stock’s 50 day moving average price is $49.37 and its 200-day moving average price is $50.30. Reynolds American has a 52-week low of $43.02 and a 52-week high of $54.48. The stock has a market capitalization of $68.36 billion, a PE ratio of 12.92 and a beta of 0.36.
Reynolds American (NYSE:RAI) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share for the quarter, missing analysts’ consensus estimates of $0.61 by $0.03. The company had revenue of $3.20 billion for the quarter, compared to analysts’ expectations of $3.26 billion. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The company’s revenue for the quarter was up 33.0% compared to the same quarter last year. During the same quarter last year, the company earned $1.02 earnings per share. On average, equities analysts expect that Reynolds American will post $2.32 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Monday, September 12th will be issued a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 3.84%. This is a positive change from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend is Thursday, September 8th. Reynolds American’s dividend payout ratio (DPR) is 49.73%.
Hedge funds have recently bought and sold shares of the company. Americafirst Capital Management LLC bought a new stake in Reynolds American during the second quarter valued at approximately $109,000. Feltz Wealth PLAN Inc. bought a new stake in Reynolds American during the second quarter valued at approximately $130,000. Quadrant Capital Group LLC raised its stake in Reynolds American by 7.4% in the second quarter. Quadrant Capital Group LLC now owns 2,928 shares of the company’s stock valued at $150,000 after buying an additional 203 shares during the period. Community Bank N.A. raised its stake in Reynolds American by 148.2% in the second quarter. Community Bank N.A. now owns 2,834 shares of the company’s stock valued at $153,000 after buying an additional 1,692 shares during the period. Finally, Benjamin F. Edwards & Company Inc. raised its stake in Reynolds American by 155.4% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 2,891 shares of the company’s stock valued at $156,000 after buying an additional 1,759 shares during the period. 46.92% of the stock is currently owned by hedge funds and other institutional investors.
Reynolds American Company Profile
Reynolds American Inc (RAI) is a holding company. The Company’s segments are RJR Tobacco, Santa Fe and American Snuff. The RJR Tobacco segment consists principally of the primary operations of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the domestic operations of Santa Fe Natural Tobacco Company, Inc (SFNTC).
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