Altria Group (NYSE:MO) Trading Down 9.3% After Earnings Miss

Altria Group, Inc. (NYSE:MO)’s stock price traded down 9.3% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $67.92 and last traded at $67.95. 11,000,239 shares traded hands during mid-day trading, an increase of 19% from the average daily volume of 9,233,658 shares. The stock had previously closed at $74.92.

The company reported $1.48 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.50 by ($0.02). The company had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.35 billion. Altria Group had a net margin of 34.34% and a negative return on equity of 298.69%. The firm’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.44 earnings per share. Altria Group has set its FY 2026 guidance at 5.610-5.720 EPS.

Altria Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Monday, June 15th were paid a $1.06 dividend. This represents a $4.24 dividend on an annualized basis and a yield of 6.2%. The ex-dividend date was Monday, June 15th. Altria Group’s dividend payout ratio is currently 88.70%.

Altria Group News Summary

Here are the key news stories impacting Altria Group this week:

• Positive Sentiment: Altria reported quarterly revenue of $5.36 billion, slightly above the $5.35 billion analyst estimate, with sales up 1.2% year over year. Adjusted earnings increased to $1.48 per share from $1.44 a year earlier. Altria Group earnings report
• Positive Sentiment: Altria’s long record of dividend increases, share repurchases and debt reduction continues to support its appeal as a defensive, income-focused stock. Its transition toward smoke-free products also provides a potential long-term growth avenue. Investors reacting to Altria dividend strength
• Neutral Sentiment: Management reiterated fiscal 2026 adjusted EPS guidance of $5.61 to $5.72. The midpoint is slightly below the $5.68 consensus estimate, although the range still encompasses analysts’ expectations. Altria Q2 earnings and revenues
• Negative Sentiment: Adjusted earnings of $1.48 per share missed the $1.50 consensus estimate. The shortfall likely contributed to the negative market reaction despite the revenue beat and year-over-year EPS growth. Altria Q2 key metrics
• Negative Sentiment: Lower sales of nicotine pouches and softer oral-tobacco performance offset growth in cigarettes, resulting in virtually flat revenue and weaker underlying profit trends. Investors also continue to weigh regulatory uncertainty surrounding a potential FDA nicotine proposal. Altria profit falls on softer oral-tobacco performance

Wall Street Analysts Forecast Growth

MO has been the subject of a number of research reports. UBS Group boosted their price target on Altria Group from $76.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $77.00 target price on shares of Altria Group in a research report on Thursday, April 30th. Barclays upped their target price on Altria Group from $63.00 to $64.00 and gave the stock an “underweight” rating in a report on Friday, May 15th. Stifel Nicolaus increased their price target on Altria Group from $68.00 to $77.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Finally, Morgan Stanley set a $71.00 price target on Altria Group in a research note on Friday, May 1st. Five analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $70.78.

Insider Buying and Selling

In other Altria Group news, Director Ellen R. Strahlman sold 2,000 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $72.56, for a total transaction of $145,120.00. Following the sale, the director owned 25,102 shares of the company’s stock, valued at approximately $1,821,401.12. This trade represents a 7.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Ennis Debra J. Kelly sold 5,790 shares of Altria Group stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $72.25, for a total value of $418,327.50. Following the completion of the transaction, the director owned 73,809 shares in the company, valued at $5,332,700.25. This represents a 7.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Altria Group

A number of institutional investors have recently added to or reduced their stakes in MO. Charles Schwab Investment Management Inc. lifted its position in shares of Altria Group by 10.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 65,516,916 shares of the company’s stock valued at $3,777,931,000 after buying an additional 6,265,780 shares during the last quarter. Assenagon Asset Management S.A. grew its position in shares of Altria Group by 3,691.2% in the 2nd quarter. Assenagon Asset Management S.A. now owns 3,606,561 shares of the company’s stock worth $259,492,000 after buying an additional 3,511,430 shares during the last quarter. Marshall Wace LLP grew its position in shares of Altria Group by 286.7% in the 3rd quarter. Marshall Wace LLP now owns 4,479,699 shares of the company’s stock worth $295,929,000 after buying an additional 3,321,262 shares during the last quarter. Vanguard Group Inc. raised its stake in shares of Altria Group by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 160,980,626 shares of the company’s stock worth $9,282,143,000 after acquiring an additional 1,903,530 shares in the last quarter. Finally, Bank of Nova Scotia raised its stake in shares of Altria Group by 301.4% during the 4th quarter. Bank of Nova Scotia now owns 2,416,142 shares of the company’s stock worth $139,315,000 after acquiring an additional 1,814,224 shares in the last quarter. Institutional investors own 57.41% of the company’s stock.

Altria Group Price Performance

The stock’s 50-day moving average is $71.95 and its 200 day moving average is $68.23. The company has a market cap of $113.43 billion, a PE ratio of 14.22, a PEG ratio of 2.70 and a beta of 0.45.

Altria Group Company Profile

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.