Reynolds American Inc. (RAI) PT Raised to $62.00
Reynolds American Inc. (NYSE:RAI) had its price objective lifted by equities research analysts at Jefferies Group from $61.00 to $62.00 in a research note issued to investors on Tuesday. The brokerage currently has a “buy” rating on the stock. Jefferies Group’s price objective would indicate a potential upside of 32.85% from the company’s current price.
Several other research firms have also commented on RAI. Zacks Investment Research lowered Reynolds American from a “buy” rating to a “hold” rating in a report on Tuesday, July 19th. Goldman Sachs Group Inc. reiterated a “buy” rating and set a $57.00 price target (up previously from $55.00) on shares of Reynolds American in a research report on Friday, July 15th. Berenberg Bank started coverage on Reynolds American in a research report on Tuesday, June 14th. They set a “hold” rating and a $54.00 price target on the stock. Cowen and Company reiterated an “outperform” rating and set a $57.00 price target on shares of Reynolds American in a research report on Tuesday, August 16th. Finally, Vetr upgraded Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 price target on the stock in a research report on Thursday, September 8th. Four equities research analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have given a strong buy rating to the stock. The stock presently has an average rating of “Buy” and an average price target of $55.93.
Reynolds American (NYSE:RAI) traded down 0.66% on Tuesday, reaching $46.36. The company had a trading volume of 2,412,905 shares. The stock’s 50 day moving average is $48.47 and its 200-day moving average is $50.06. The stock has a market capitalization of $66.17 billion, a P/E ratio of 12.51 and a beta of 0.40. Reynolds American has a 1-year low of $44.06 and a 1-year high of $54.48.
Reynolds American (NYSE:RAI) last posted its earnings results on Tuesday, July 26th. The company reported $0.58 EPS for the quarter, missing the consensus estimate of $0.61 by $0.03. The company had revenue of $3.20 billion for the quarter, compared to analyst estimates 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 was up 33.0% on a year-over-year basis. During the same period last year, the business earned $1.02 earnings per share. On average, equities analysts predict that Reynolds American will post $2.32 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 12th were given a dividend of $0.46 per share. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend was Thursday, September 8th. This represents a $1.84 dividend on an annualized basis and a yield of 3.94%. Reynolds American’s dividend payout ratio (DPR) is presently 49.73%.
In related 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 transaction of $31,718,291.55. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.11% of the company’s stock.
A number of large investors have recently bought and sold shares of the company. Jackson Grant Investment Advisers Inc. boosted its stake in Reynolds American by 0.8% in the second quarter. Jackson Grant Investment Advisers Inc. now owns 3,198 shares of the company’s stock valued at $172,000 after buying an additional 25 shares during the period. Dynamic Advisors Solutions LLC boosted its stake in Reynolds American by 0.6% in the second quarter. Dynamic Advisors Solutions LLC now owns 6,886 shares of the company’s stock valued at $371,000 after buying an additional 44 shares during the period. Williams Jones & Associates LLC boosted its stake in Reynolds American by 0.8% in the first quarter. Williams Jones & Associates LLC now owns 6,186 shares of the company’s stock valued at $311,000 after buying an additional 50 shares during the period. Karp Capital Management Corp boosted its stake in Reynolds American by 1.2% in the second quarter. Karp Capital Management Corp now owns 4,370 shares of the company’s stock valued at $236,000 after buying an additional 51 shares during the period. Finally, Citizens Financial Group Inc RI boosted its stake in Reynolds American by 1.2% in the first quarter. Citizens Financial Group Inc RI now owns 5,519 shares of the company’s stock valued at $278,000 after buying an additional 66 shares during the period. 46.92% of the stock is owned by institutional investors.
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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