Altria Group (NYSE:MO) Trading 1.6% Higher – Still a Buy?

Altria Group, Inc. (NYSE:MO) rose 1.6% during trading on Thursday . The company traded as high as $67.46 and last traded at $66.9750. Approximately 9,403,891 shares traded hands during trading, a decline of 17% from the average daily volume of 11,277,672 shares. The stock had previously closed at $65.92.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on MO. UBS Group lifted their price target on Altria Group from $63.00 to $67.00 and gave the company a “buy” rating in a report on Monday, January 26th. Argus upgraded Altria Group to a “hold” rating in a report on Tuesday, January 13th. Stifel Nicolaus cut their price target on shares of Altria Group from $72.00 to $68.00 and set a “buy” rating on the stock in a report on Friday, January 30th. Finally, Citigroup raised their price target on Altria Group from $57.00 to $65.00 and gave the company a “neutral” rating in a research report on Monday. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $63.67.

Altria Group Stock Up 1.6%

The stock has a market capitalization of $112.43 billion, a price-to-earnings ratio of 16.30, a price-to-earnings-growth ratio of 3.55 and a beta of 0.47. The stock has a 50 day moving average price of $60.06 and a 200 day moving average price of $62.08.

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

Altria Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 26th were paid a $1.06 dividend. This represents a $4.24 dividend on an annualized basis and a yield of 6.3%. The ex-dividend date of this dividend was Friday, December 26th. Altria Group’s dividend payout ratio is currently 103.16%.

Altria Group announced that its Board of Directors has initiated a stock buyback program on Thursday, October 30th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to buy up to 1.9% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Altria Group

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