Gargoyle Investment Advisor L.L.C. purchased a new position in shares of Reynolds American Inc. (NYSE:RAI) during the second quarter, Holdings Channel reports. The firm purchased 50,591 shares of the company’s stock, valued at approximately $2,728,000. Reynolds American makes up 1.0% of Gargoyle Investment Advisor L.L.C.’s investment portfolio, making the stock its 21st largest position.
Several other institutional investors have also recently added to or reduced their stakes in the stock. State Street Corp increased its stake in shares of Reynolds American by 3.3% in the first quarter. State Street Corp now owns 31,757,800 shares of the company’s stock valued at $1,597,726,000 after buying an additional 1,003,117 shares during the last quarter. BlackRock Institutional Trust Company N.A. increased its stake in shares of Reynolds American by 0.5% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 20,902,757 shares of the company’s stock valued at $1,051,618,000 after buying an additional 109,385 shares during the last quarter. JPMorgan Chase & Co. increased its stake in shares of Reynolds American by 5.3% in the first quarter. JPMorgan Chase & Co. now owns 12,600,553 shares of the company’s stock valued at $633,933,000 after buying an additional 636,616 shares during the last quarter. BlackRock Fund Advisors increased its stake in shares of Reynolds American by 1.7% in the first quarter. BlackRock Fund Advisors now owns 10,658,716 shares of the company’s stock valued at $536,240,000 after buying an additional 174,579 shares during the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of Reynolds American by 1.8% in the first quarter. Geode Capital Management LLC now owns 6,394,044 shares of the company’s stock valued at $320,995,000 after buying an additional 114,893 shares during the last quarter. 46.92% of the stock is currently owned by institutional investors.
Reynolds American Inc. (NYSE:RAI) traded up 0.04% during midday trading on Friday, reaching $47.15. 4,706,760 shares of the company’s stock were exchanged. Reynolds American Inc. has a 12 month low of $43.02 and a 12 month high of $54.48. The company has a 50 day moving average price of $49.25 and a 200 day moving average price of $50.26. The company has a market cap of $67.30 billion, a P/E ratio of 12.72 and a beta of 0.36.
Reynolds American (NYSE:RAI) last issued its earnings results on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.61 by $0.03. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The firm earned $3.20 billion during the quarter, compared to the consensus estimate of $3.26 billion. During the same period last year, the firm posted $1.02 earnings per share. The company’s revenue for the quarter was up 33.0% compared to the same quarter last year. On average, equities analysts anticipate that Reynolds American Inc. will post $2.32 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Monday, September 12th will be issued a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 3.90%. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date is Thursday, September 8th. Reynolds American’s payout ratio is 49.73%.
Several equities research analysts have recently issued reports on RAI shares. Credit Agricole SA upgraded shares of Reynolds American from an “underperform” rating to an “outperform” rating and raised 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. restated a “buy” rating and issued a $57.00 price objective (up previously from $55.00) on shares of Reynolds American in a research note on Friday, July 15th. Citigroup Inc. started coverage on shares of Reynolds American in a research note on Monday, September 12th. They issued a “buy” rating and a $57.00 price objective on the stock. Vetr upgraded shares of Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 price objective on the stock in a research note on Thursday, September 8th. Finally, Cowen and Company restated an “outperform” rating and issued a $57.00 price objective on shares of Reynolds American in a research note on Tuesday, August 16th. Four research analysts have rated the stock with a hold rating, eight have given a buy rating and two have assigned a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average target price of $55.86.
In related news, major shareholder American Tobacco P.L.C British sold 660,385 shares of Reynolds American stock in a transaction dated Wednesday, September 28th. The stock was sold at an average price of $48.03, for a total value of $31,718,291.55. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.11% of the stock is owned by insiders.
About Reynolds American
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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