Reynolds American Inc. (RAI) Announces Quarterly Earnings Results
Reynolds American Inc. (NYSE:RAI) posted its quarterly earnings data on Wednesday. The company reported $0.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.65 by $0.04. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The business had revenue of $3.21 billion for the quarter, compared to analysts’ expectations of $3.31 billion.
Reynolds American (NYSE:RAI) opened at 47.27 on Wednesday. The company’s 50-day moving average price is $47.91 and its 200-day moving average price is $49.92. The company has a market cap of $67.47 billion, a PE ratio of 12.75 and a beta of 0.40. Reynolds American has a 12-month low of $44.06 and a 12-month high of $54.48.
The firm also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 12th were issued a dividend of $0.46 per share. 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 3.89%. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. Reynolds American’s dividend payout ratio (DPR) is presently 49.73%.
In other news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the company’s stock in a transaction dated Wednesday, September 28th. The shares were sold at an average price of $48.03, for a total transaction of $31,718,291.55. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Insiders own 0.11% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Woodmont Investment Counsel LLC raised its position in shares of Reynolds American by 10.2% in the second quarter. Woodmont Investment Counsel LLC now owns 4,189 shares of the company’s stock valued at $226,000 after buying an additional 389 shares in the last quarter. Karp Capital Management Corp raised 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 worth $236,000 after buying an additional 51 shares in the last quarter. BlueMountain Capital Management LLC acquired a new stake in Reynolds American during the second quarter worth $258,000. Camarda Financial Advisors LLC raised its stake in Reynolds American by 12.6% in the second quarter. Camarda Financial Advisors LLC now owns 7,806 shares of the company’s stock worth $421,000 after buying an additional 872 shares in the last quarter. Finally, EFG Asset Management Americas Corp. raised its stake in Reynolds American by 27.0% in the second quarter. EFG Asset Management Americas Corp. now owns 8,640 shares of the company’s stock worth $494,000 after buying an additional 1,836 shares in the last quarter. Hedge funds and other institutional investors own 46.87% of the company’s stock.
Several equities research analysts have issued reports on the company. Goldman Sachs Group Inc. downgraded Reynolds American from a “buy” rating to a “neutral” rating and dropped their price objective for the stock from $56.00 to $53.00 in a report on Monday, September 12th. Zacks Investment Research upgraded Reynolds American from a “sell” rating to a “hold” rating in a research report on Wednesday, August 10th. Citigroup Inc. reiterated a “buy” rating and issued a $57.00 target price on shares of Reynolds American in a research report on Monday, September 26th. Jefferies Group initiated coverage on Reynolds American in a research report on Wednesday, September 21st. They issued a “buy” rating and a $61.00 target price for the company. Finally, Credit Agricole SA upgraded Reynolds American from an “underperform” rating to an “outperform” rating and lifted their target price for the stock from $52.00 to $54.00 in a research report on Monday, August 8th. They noted that the move was a valuation call. Four equities research analysts have rated the stock with a hold rating, eight have issued a buy rating and two have issued a strong buy rating to the company. Reynolds American presently has an average rating of “Buy” and an average target price of $55.93.
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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