American Tobacco P.L.C British Sells 660,385 Shares of Reynolds American Inc. (RAI) Stock
Reynolds American Inc. (NYSE:RAI) major shareholder American Tobacco P.L.C British sold 660,385 shares of the company’s stock in a transaction that occurred on Wednesday, September 28th. The stock was sold at an average price of $48.03, for a total value of $31,718,291.55. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Major shareholders that own more than 10% of a company’s stock are required to disclose their sales and purchases with the SEC.
Shares of Reynolds American Inc. (NYSE:RAI) opened at 47.13 on Friday. Reynolds American Inc. has a 12 month low of $43.02 and a 12 month high of $54.48. The company has a market capitalization of $67.27 billion, a PE ratio of 12.72 and a beta of 0.36. The stock has a 50 day moving average price of $49.25 and a 200-day moving average price of $50.26.
Reynolds American (NYSE:RAI) last announced its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.61 by $0.03. The firm earned $3.20 billion during the quarter, compared to the consensus estimate of $3.26 billion. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The firm’s revenue for the quarter was up 33.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.02 EPS. Analysts forecast that Reynolds American Inc. will post $2.32 EPS for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 3rd. Shareholders of record on Monday, September 12th will be paid a $0.46 dividend. The ex-dividend date is Thursday, September 8th. This represents a $1.84 annualized dividend and a yield of 3.90%. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. Reynolds American’s dividend payout ratio (DPR) is presently 49.73%.
A number of research firms have weighed in on RAI. Goldman Sachs Group Inc. downgraded Reynolds American from a “buy” rating to a “neutral” rating and reduced their target price for the stock from $56.00 to $53.00 in a report on Monday, September 12th. Citigroup Inc. reiterated a “buy” rating and set a $57.00 target price on shares of Reynolds American in a report on Monday. Zacks Investment Research upgraded Reynolds American from a “sell” rating to a “hold” rating in a report on Wednesday, August 10th. Jefferies Group began coverage on Reynolds American in a report on Wednesday, September 21st. They set a “buy” rating and a $61.00 target price on the stock. Finally, Credit Agricole SA upgraded Reynolds American from an “underperform” rating to an “outperform” rating and upped their target price for the stock from $52.00 to $54.00 in a report on Monday, August 8th. They noted that the move was a valuation call. Four 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 stock. The company has a consensus rating of “Buy” and an average price target of $55.86.
A number of hedge funds have recently made changes to their positions in RAI. Americafirst Capital Management LLC purchased a new stake in shares of Reynolds American during the second quarter valued at about $109,000. Feltz Wealth PLAN Inc. purchased a new stake in shares of Reynolds American during the second quarter valued at about $130,000. Quadrant Capital Group LLC increased its stake in shares of Reynolds American by 7.4% in the second quarter. Quadrant Capital Group LLC now owns 2,928 shares of the company’s stock valued at $150,000 after buying an additional 203 shares during the last quarter. Community Bank N.A. increased its stake in shares of Reynolds American by 148.2% in the second quarter. Community Bank N.A. now owns 2,834 shares of the company’s stock valued at $153,000 after buying an additional 1,692 shares during the last quarter. Finally, Benjamin F. Edwards & Company Inc. increased its stake in shares of Reynolds American by 155.4% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 2,891 shares of the company’s stock valued at $156,000 after buying an additional 1,759 shares during the last quarter. 46.92% of the stock is owned by institutional investors and hedge funds.
About Reynolds American
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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