Essex Financial Services Inc. cut its position in shares of Reynolds American Inc. (NYSE:RAI) by 17.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 7,974 shares of the company’s stock after selling 1,684 shares during the period. Essex Financial Services Inc.’s holdings in Reynolds American were worth $430,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Canada Pension Plan Investment Board raised its position in Reynolds American by 101,633.9% in the first quarter. Canada Pension Plan Investment Board now owns 791,490 shares of the company’s stock worth $39,820,000 after buying an additional 790,712 shares during the period. Hanlon Investment Management Inc. bought a new position in Reynolds American during the first quarter worth about $4,151,000. State Street Corp raised its position in Reynolds American by 3.3% in the first quarter. State Street Corp now owns 31,757,800 shares of the company’s stock worth $1,597,726,000 after buying an additional 1,003,117 shares during the period. Optimum Investment Advisors bought a new position in Reynolds American during the first quarter worth about $455,000. Finally, Lazard Asset Management LLC raised its position in Reynolds American by 8.8% in the first quarter. Lazard Asset Management LLC now owns 1,886,236 shares of the company’s stock worth $94,895,000 after buying an additional 153,080 shares during the period. Hedge funds and other institutional investors own 46.87% of the company’s stock.
Reynolds American Inc. (NYSE:RAI) traded up 0.04% during mid-day trading on Tuesday, hitting $47.27. The stock had a trading volume of 5,884,153 shares. The company has a 50 day moving average price of $47.91 and a 200 day moving average price of $49.92. The stock has a market cap of $67.47 billion, a P/E ratio of 12.75 and a beta of 0.40. Reynolds American Inc. has a one year low of $44.06 and a one year high of $54.48.
Reynolds American (NYSE:RAI) last posted its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 EPS for the quarter, missing the Zacks’ consensus estimate of $0.61 by $0.03. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The company had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion. During the same quarter in the prior year, the business earned $1.02 EPS. Reynolds American’s revenue 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 firm also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 12th were issued a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 3.89%. This is a boost 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 (DPR) is presently 49.73%.
RAI has been the subject of a number of recent research reports. Goldman Sachs Group Inc. reiterated a “buy” rating and issued a $57.00 target price (up from $55.00) on shares of Reynolds American in a report on Friday, July 15th. Zacks Investment Research lowered Reynolds American from a “buy” rating to a “hold” rating in a report on Tuesday, July 19th. Credit Agricole SA upgraded Reynolds American from an “underperform” rating to an “outperform” rating and lifted their target price for the company from $52.00 to $54.00 in a report on Monday, August 8th. They noted that the move was a valuation call. Cowen and Company reaffirmed an “outperform” rating and set a $57.00 price target on shares of Reynolds American in a report on Tuesday, August 16th. Finally, Morgan Stanley reaffirmed a “hold” rating on shares of Reynolds American in a report on Thursday, September 1st. Four investment 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 presently has a consensus rating of “Buy” and an average target price of $55.93.
In related news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the firm’s stock in a transaction that occurred on Wednesday, September 28th. The shares were sold at an average price of $48.03, for a total transaction of $31,718,291.55. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.11% 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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