Reynolds American Inc. (NYSE:RAI) – Stock analysts at Credit Agricole SA reduced their FY2016 earnings per share (EPS) estimates for Reynolds American in a research report issued on Thursday. Credit Agricole SA analyst M. Lavery now forecasts that the firm will earn $2.31 per share for the year, down from their previous forecast of $2.33. Credit Agricole SA has a “Outperform” rating and a $54.00 price objective on the stock.
Reynolds American (NYSE:RAI) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 analysts’ expectations of $3.26 billion. During the same period in the previous year, the firm earned $1.02 EPS. The firm’s quarterly revenue was up 33.0% on a year-over-year basis.
A number of other brokerages have also issued reports on RAI. Zacks Investment Research lowered shares of Reynolds American from a “buy” rating to a “hold” rating in a report on Tuesday, July 19th. Goldman Sachs Group Inc. reissued a “buy” rating and issued a $57.00 price objective (up previously from $55.00) on shares of Reynolds American in a report on Friday, July 15th. Cowen and Company reaffirmed an “outperform” rating and issued a $57.00 target price on shares of Reynolds American in a research report on Tuesday, August 16th. Vetr raised shares of Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 target price on the stock in a research report on Thursday, September 8th. Finally, Morgan Stanley reaffirmed a “hold” rating on shares of Reynolds American in a research report on Thursday, September 1st. Four equities research analysts have rated the stock with a hold rating, eight have issued a buy rating and two have given a strong buy rating to the stock. Reynolds American has a consensus rating of “Buy” and a consensus target price of $55.93.
Reynolds American (NYSE:RAI) opened at 47.27 on Monday. The stock has a market cap of $67.47 billion, a P/E ratio of 12.75 and a beta of 0.40. The stock has a 50 day moving average of $47.91 and a 200-day moving average of $49.92. Reynolds American has a 12 month low of $44.06 and a 12 month high of $54.48.
The company also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Monday, September 12th were given a $0.46 dividend. This is a positive change from Reynolds American’s previous quarterly dividend of $0.42. This represents a $1.84 annualized dividend and a yield of 3.89%. The ex-dividend date was Thursday, September 8th. Reynolds American’s dividend payout ratio is presently 49.73%.
In other Reynolds American news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the company’s 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 sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.11% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of RAI. AMP Capital Investors Ltd raised its position in shares of Reynolds American by 9.3% in the first quarter. AMP Capital Investors Ltd now owns 789,202 shares of the company’s stock worth $39,839,000 after buying an additional 67,138 shares in the last quarter. Envestnet Asset Management Inc. raised its position in shares of Reynolds American by 4.4% in the first quarter. Envestnet Asset Management Inc. now owns 552,059 shares of the company’s stock worth $27,774,000 after buying an additional 23,487 shares in the last quarter. Aviance Capital Management LLC raised its position in shares of Reynolds American by 30.1% in the second quarter. Aviance Capital Management LLC now owns 549,100 shares of the company’s stock worth $29,613,000 after buying an additional 127,031 shares in the last quarter. CAM Group Holding A S raised its position in shares of Reynolds American by 0.3% in the second quarter. CAM Group Holding A S now owns 4,797,950 shares of the company’s stock worth $258,754,000 after buying an additional 12,850 shares in the last quarter. Finally, Teacher Retirement System of Texas raised its position in shares of Reynolds American by 6.0% in the second quarter. Teacher Retirement System of Texas now owns 83,284 shares of the company’s stock worth $4,492,000 after buying an additional 4,695 shares in the last quarter. 46.87% of the stock is currently owned by 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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