Reynolds American Inc. (NYSE:RAI) Given Average Rating of “Buy” by Brokerages
Reynolds American Inc. (NYSE:RAI) has been given an average recommendation of “Buy” by the fourteen research firms that are presently covering the company. Four analysts have rated the stock with a hold recommendation, eight have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1-year price target among analysts that have covered the stock in the last year is $56.56.
RAI has been the subject of a number of recent analyst reports. Credit Agricole SA upgraded Reynolds American from an “underperform” rating to an “outperform” rating and upped their target price for the company from $52.00 to $54.00 in a report on Monday, August 8th. They noted that the move was a valuation call. Goldman Sachs Group Inc. restated a “buy” rating and set a $57.00 target price (up previously from $55.00) on shares of Reynolds American in a report on Friday, July 15th. Citigroup Inc. initiated coverage on Reynolds American in a report on Monday, September 12th. They set a “buy” rating and a $57.00 target price for the company. Vetr upgraded Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 target price for the company in a report on Thursday, September 8th. Finally, Cowen and Company restated an “outperform” rating and set a $57.00 target price on shares of Reynolds American in a report on Tuesday, August 16th.
In other news, major shareholder American Tobacco P.L.C British sold 660,385 shares of Reynolds American 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.11% of the stock is owned by insiders.
Several institutional investors have recently made changes to their positions in the company. First Trust Advisors LP raised its stake in shares of Reynolds American by 7.2% in the second quarter. First Trust Advisors LP now owns 2,710,702 shares of the company’s stock worth $146,188,000 after buying an additional 181,349 shares in the last quarter. Monetary Management Group Inc. raised its stake in shares of Reynolds American by 1.9% in the first quarter. Monetary Management Group Inc. now owns 5,500 shares of the company’s stock worth $277,000 after buying an additional 100 shares in the last quarter. Berkeley Capital Partners LLC acquired a new stake in shares of Reynolds American during the first quarter worth about $256,000. Advisor Partners LLC raised its stake in shares of Reynolds American by 3.5% in the first quarter. Advisor Partners LLC now owns 22,747 shares of the company’s stock worth $1,144,000 after buying an additional 769 shares in the last quarter. Finally, USS Investment Management Ltd raised its stake in shares of Reynolds American by 86.9% in the first quarter. USS Investment Management Ltd now owns 123,747 shares of the company’s stock worth $6,226,000 after buying an additional 57,542 shares in the last quarter. Hedge funds and other institutional investors own 46.92% of the company’s stock.
Shares of Reynolds American (NYSE:RAI) traded down 0.549% during trading on Monday, reaching $46.891. The company’s stock had a trading volume of 1,786,757 shares. The stock’s 50 day moving average is $49.17 and its 200 day moving average is $50.23. The firm has a market cap of $66.93 billion, a P/E ratio of 12.653 and a beta of 0.40. Reynolds American has a one year low of $44.06 and a one year high of $54.48.
Reynolds American (NYSE:RAI) last announced its earnings results on Tuesday, July 26th. The company reported $0.58 EPS for the quarter, missing analysts’ consensus estimates of $0.61 by $0.03. The business had revenue of $3.20 billion for the quarter, compared to the consensus estimate of $3.26 billion. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. Reynolds American’s revenue was up 33.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.02 EPS. On average, equities analysts forecast that Reynolds American will post $2.32 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Monday, September 12th will be issued a $0.46 dividend. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend is Thursday, September 8th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.90%. Reynolds American’s payout ratio is 49.73%.
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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