Shares of Reynolds American Inc. (NYSE:RAI) traded down 2.6% during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $43.38 and last traded at $46.05, with a volume of 9,068,921 shares changing hands. The stock had previously closed at $47.27.

The company reported $0.61 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.65 by $0.04. The business earned $3.21 billion during the quarter, compared to the consensus estimate of $3.31 billion. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The business’s revenue for the quarter was up 1.4% on a year-over-year basis. During the same period in the prior year, the firm earned $0.55 EPS.

The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Monday, September 12th were issued a $0.46 dividend. The ex-dividend date was Thursday, September 8th. This represents a $1.84 dividend on an annualized basis and a yield of 3.89%. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. Reynolds American’s payout ratio is currently 49.73%.

RAI has been the subject of a number of recent research reports. Credit Agricole SA raised shares of Reynolds American from an “underperform” rating to an “outperform” rating and boosted their price objective 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. reissued a “buy” rating and issued a $57.00 price objective (up previously from $55.00) on shares of Reynolds American in a report on Friday, July 15th. Citigroup Inc. initiated coverage on shares of Reynolds American in a report on Monday, September 12th. They issued a “buy” rating and a $57.00 price objective for the company. Vetr raised shares of Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 price objective for the company in a report on Thursday, September 8th. Finally, Cowen and Company reissued an “outperform” rating and issued a $57.00 price objective on shares of Reynolds American in a report on Tuesday, August 16th. Four equities research analysts have rated the stock with a hold rating, eight have given a buy rating and two have issued a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus target price of $55.93.

In other Reynolds American news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the company’s stock in a transaction that occurred on Wednesday, September 28th. The shares were 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 can be accessed through the SEC website. 0.11% of the stock is currently owned by company insiders.

Institutional investors have recently made changes to their positions in the stock. Jackson Grant Investment Advisers Inc. boosted its position in shares of 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. Hedge funds and other institutional investors own 46.87% of the company’s stock.

The stock has a market capitalization of $65.64 billion, a P/E ratio of 12.41 and a beta of 0.40. The firm has a 50 day moving average of $47.91 and a 200-day moving average of $49.92.

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).

5 Day Chart for NYSE:RAI

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