Altria Group (NYSE:MO) Trading Up 2.4% – Should You Buy?

Altria Group, Inc. (NYSE:MO)’s stock price rose 2.4% during trading on Wednesday . The company traded as high as $66.46 and last traded at $65.9180. Approximately 12,237,921 shares changed hands during mid-day trading, an increase of 8% from the average daily volume of 11,345,132 shares. The stock had previously closed at $64.40.

Analyst Ratings Changes

MO has been the topic of several recent analyst reports. Stifel Nicolaus dropped their target price on Altria Group from $72.00 to $68.00 and set a “buy” rating on the stock in a research report on Friday, January 30th. Argus raised Altria Group to a “hold” rating in a report on Tuesday, January 13th. UBS Group increased their price objective on Altria Group from $63.00 to $67.00 and gave the stock a “buy” rating in a research report on Monday, January 26th. Finally, Citigroup raised their target price on Altria Group from $57.00 to $65.00 and gave the company a “neutral” rating in a report on Monday. Five equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $63.67.

Altria Group Stock Up 2.4%

The firm has a fifty day moving average of $59.91 and a 200-day moving average of $62.05. The stock has a market capitalization of $110.65 billion, a price-to-earnings ratio of 16.04, a PEG ratio of 3.55 and a beta of 0.47.

Altria Group (NYSE:MO) last announced its quarterly earnings results on Thursday, January 29th. The company reported $1.30 earnings per share for the quarter, missing analysts’ consensus estimates of $1.32 by ($0.02). The firm had revenue of $5.08 billion during the quarter, compared to analysts’ expectations of $5.02 billion. Altria Group had a net margin of 29.84% and a negative return on equity of 287.61%. The company’s quarterly revenue was down .5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.30 EPS. As a group, research analysts forecast that Altria Group, Inc. will post 5.32 EPS for the current fiscal year.

Altria Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, January 9th. Stockholders of record on Friday, December 26th were given a $1.06 dividend. The ex-dividend date was Friday, December 26th. This represents a $4.24 annualized dividend and a dividend yield of 6.4%. Altria Group’s dividend payout ratio is currently 103.16%.

Altria Group declared that its Board of Directors has authorized a share buyback program on Thursday, October 30th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to purchase up to 1.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board of directors believes its stock is undervalued.

Institutional Investors Weigh In On Altria Group

Large investors have recently bought and sold shares of the stock. Darwin Wealth Management LLC purchased a new stake in shares of Altria Group in the second quarter valued at $27,000. Navalign LLC acquired a new position in Altria Group in the 4th quarter valued at about $28,000. Country Trust Bank raised its stake in Altria Group by 400.0% in the 2nd quarter. Country Trust Bank now owns 500 shares of the company’s stock valued at $29,000 after purchasing an additional 400 shares during the last quarter. EMC Capital Management purchased a new position in Altria Group in the 3rd quarter valued at about $33,000. Finally, Creative Capital Management Investments LLC acquired a new stake in shares of Altria Group during the 4th quarter worth about $29,000. Institutional investors and hedge funds own 57.41% of the company’s stock.

About Altria Group

Altria Group, Inc (NYSE: MO) is a U.S.-based consumer goods company whose principal business is the manufacture and sale of tobacco products. Headquartered in Richmond, Virginia, the company’s operations are focused primarily on the U.S. market and include the production, marketing and distribution of cigarettes, smokeless tobacco and cigars. Its flagship cigarette franchise in the United States is sold through its operating subsidiaries and is among the most recognizable cigarette brands in the country.

Altria’s principal operating businesses include Philip Morris USA (cigarettes), U.S.