FY2016 EPS Estimates for Reynolds American Inc. (RAI) Cut by Analyst
Reynolds American Inc. (NYSE:RAI) – Stock analysts at Credit Agricole SA decreased their FY2016 earnings per share estimates for Reynolds American in a report released on Thursday. Credit Agricole SA analyst M. Lavery now forecasts that the brokerage will post earnings per share of $2.31 for the year, down from their previous forecast of $2.33. Credit Agricole SA has a “Outperform” rating and a $54.00 price target on the stock.
RAI has been the topic of several other research reports. Citigroup Inc. restated a “buy” rating and issued a $57.00 target price on shares of Reynolds American in a research note on Monday, September 26th. Goldman Sachs Group Inc. restated a “neutral” rating and issued a $53.00 target price on shares of Reynolds American in a research note on Saturday. Morgan Stanley restated a “hold” rating on shares of Reynolds American in a research note on Thursday, September 1st. Jefferies Group boosted their target price on shares of Reynolds American from $61.00 to $62.00 and gave the company a “buy” rating in a research note on Tuesday, October 11th. Finally, Cowen and Company restated an “outperform” rating and issued a $57.00 target price on shares of Reynolds American in a research note on Tuesday, August 16th. Four analysts have rated the stock with a hold rating, eight have given a buy rating and two have given a strong buy rating to the company. The stock has an average rating of “Buy” and an average price target of $55.93.
Reynolds American (NYSE:RAI) opened at 47.27 on Monday. Reynolds American has a 52-week low of $44.06 and a 52-week high of $54.48. The stock’s 50 day moving average is $48.06 and its 200 day moving average is $49.97. The company has a market cap of $67.47 billion, a price-to-earnings ratio of 12.75 and a beta of 0.40.
Reynolds American (NYSE:RAI) last posted its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share for the quarter, missing the Thomson Reuters’ 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 the consensus estimate of $3.26 billion. During the same quarter last year, the business posted $1.02 EPS. The business’s revenue for the quarter was up 33.0% on a year-over-year basis.
Hedge funds have recently made changes to their positions in the stock. Prudential Financial Inc. boosted its stake in shares of Reynolds American by 155.4% in the second quarter. Prudential Financial Inc. now owns 2,951,808 shares of the company’s stock worth $159,191,000 after buying an additional 1,795,912 shares during the period. Capital World Investors boosted its stake in shares of Reynolds American by 3.5% in the second quarter. Capital World Investors now owns 43,489,368 shares of the company’s stock worth $2,345,382,000 after buying an additional 1,464,000 shares during the period. Artemis Investment Management LLP boosted its stake in shares of Reynolds American by 132.9% in the second quarter. Artemis Investment Management LLP now owns 2,380,516 shares of the company’s stock worth $128,347,000 after buying an additional 1,358,456 shares during the period. Vanguard Group Inc. boosted its stake in shares of Reynolds American by 2.2% in the second quarter. Vanguard Group Inc. now owns 62,617,955 shares of the company’s stock worth $3,376,987,000 after buying an additional 1,343,766 shares during the period. Finally, Emerald Acquisition Ltd. bought a new stake in shares of Reynolds American during the second quarter worth approximately $66,684,000. 46.92% of the stock is owned by institutional investors.
In other Reynolds American news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the business’s stock in a transaction dated 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 legal filing with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.11% of the company’s stock.
The company also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Monday, September 12th were issued a dividend of $0.46 per share. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. This represents a $1.84 annualized dividend and a yield of 3.89%. The ex-dividend date of this dividend was Thursday, September 8th. Reynolds American’s payout ratio is currently 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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