Reynolds American Inc. (NYSE:RAI) had its price objective boosted by Jefferies Group from $61.00 to $62.00 in a research note issued to investors on Tuesday morning. Jefferies Group currently has a buy rating on the stock.
Other equities research analysts have also recently issued research reports about the company. Vetr raised 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. Zacks Investment Research cut Reynolds American from a hold rating to a sell rating in a research report on Wednesday, July 27th. Goldman Sachs Group Inc. reaffirmed a buy rating and set a $57.00 target price (up previously from $55.00) on shares of Reynolds American in a research report on Friday, July 15th. Credit Agricole SA raised Reynolds American from an underperform rating to an outperform rating and upped their target price for the stock from $52.00 to $54.00 in a research report on Monday, August 8th. They noted that the move was a valuation call. Finally, Berenberg Bank assumed coverage on Reynolds American in a research report on Tuesday, June 14th. They set a hold rating and a $54.00 target price for the company. Four research analysts have rated the stock with a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the company. The company presently has an average rating of Buy and a consensus target price of $55.93.
Reynolds American (NYSE:RAI) traded up 0.19% during midday trading on Tuesday, hitting $46.48. 794,204 shares of the company traded hands. The stock has a 50 day moving average price of $48.35 and a 200-day moving average price of $50.04. The company has a market cap of $66.34 billion, a PE ratio of 12.54 and a beta of 0.40. Reynolds American has a 12-month low of $44.06 and a 12-month high of $54.48.
Reynolds American (NYSE:RAI) last announced its quarterly earnings results on Tuesday, July 26th. The company reported $0.58 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.61 by $0.03. The firm earned $3.20 billion during the quarter, compared to the consensus estimate of $3.26 billion. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The company’s quarterly revenue was up 33.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.02 EPS. Analysts expect that Reynolds American will post $2.32 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 12th were paid a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.97%. This is a positive change from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend was Thursday, September 8th. Reynolds American’s dividend payout ratio is presently 49.73%.
In related news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the company’s stock in a transaction on Wednesday, September 28th. The stock was sold at an average price of $48.03, for a total value of $31,718,291.55. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.11% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. First Trust Advisors LP raised its position in Reynolds American by 7.2% in the second quarter. First Trust Advisors LP now owns 2,710,702 shares of the company’s stock valued at $146,188,000 after buying an additional 181,349 shares in the last quarter. Geode Capital Management LLC raised its position in 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 in the last quarter. Loomis Sayles & Co. L P bought a new position in Reynolds American during the first quarter valued at about $19,004,000. Cleararc Capital Inc. raised its position in Reynolds American by 0.9% in the first quarter. Cleararc Capital Inc. now owns 34,967 shares of the company’s stock valued at $1,759,000 after buying an additional 307 shares in the last quarter. Finally, Pictet Asset Management Ltd. raised its position in Reynolds American by 3.2% in the first quarter. Pictet Asset Management Ltd. now owns 709,768 shares of the company’s stock valued at $35,794,000 after buying an additional 21,778 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.
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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