Jefferies Group Weighs in on Reynolds American Inc.’s Q3 2016 Earnings (RAI)
Reynolds American Inc. (NYSE:RAI) – Investment analysts at Jefferies Group issued their Q3 2016 earnings estimates for shares of Reynolds American in a research report issued on Tuesday. Jefferies Group analyst O. Bennett anticipates that the brokerage will post earnings of $0.63 per share for the quarter. Jefferies Group has a “Buy” rating and a $62.00 price objective on the stock.
RAI has been the subject of a number of other research reports. Zacks Investment Research cut Reynolds American from a “hold” rating to a “sell” rating in a report on Wednesday, July 27th. Morgan Stanley reissued a “hold” rating on shares of Reynolds American in a report on Thursday, September 1st. Berenberg Bank began coverage on Reynolds American in a report on Tuesday, June 14th. They set a “hold” rating and a $54.00 target price for the company. Cowen and Company reissued an “outperform” rating and set a $57.00 target price on shares of Reynolds American in a report on Tuesday, August 16th. Finally, Goldman Sachs Group Inc. cut Reynolds American from a “buy” rating to a “neutral” rating and reduced their target price for the company from $56.00 to $53.00 in a report on Monday, September 12th. Four 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 company. The company has an average rating of “Buy” and an average price target of $55.93.
Reynolds American (NYSE:RAI) traded up 0.50% during midday trading on Wednesday, hitting $46.62. The company had a trading volume of 1,248,439 shares. The stock has a market capitalization of $66.54 billion, a PE ratio of 12.58 and a beta of 0.40. The stock has a 50 day moving average price of $48.35 and a 200-day moving average price of $50.04. Reynolds American has a 52 week low of $44.06 and a 52 week high of $54.48.
Reynolds American (NYSE:RAI) last released its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 EPS for the quarter, missing the consensus estimate of $0.61 by $0.03. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The business had revenue of $3.20 billion for the quarter, compared to analysts’ expectations of $3.26 billion. During the same period last year, the business earned $1.02 earnings per share. The company’s quarterly revenue was up 33.0% on a year-over-year basis.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Americafirst Capital Management LLC purchased a new position in Reynolds American during the second quarter valued at approximately $109,000. Feltz Wealth PLAN Inc. bought a new stake in shares of Reynolds American during the second quarter valued at about $130,000. Quadrant Capital Group LLC boosted 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. boosted 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. boosted 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. Institutional investors and hedge funds own 46.92% of the company’s stock.
In related news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the 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 document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.11% of the stock is owned by corporate insiders.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 12th were given a $0.46 dividend. This represents a $1.84 annualized dividend and a yield of 3.97%. This is a positive change from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend was Thursday, September 8th. Reynolds American’s dividend payout ratio is presently 49.73%.
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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