Reynolds American Inc. (NYSE:RAI) major shareholder American Tobacco P.L.C British sold 660,385 shares of the firm’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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Major shareholders that own at least 10% of a company’s stock are required to disclose their sales and purchases with the SEC.
Reynolds American Inc. (NYSE:RAI) opened at 46.80 on Wednesday. Reynolds American Inc. has a 52-week low of $44.06 and a 52-week high of $54.48. The stock has a market cap of $66.80 billion, a P/E ratio of 12.63 and a beta of 0.40. The firm’s 50-day moving average is $48.96 and its 200-day moving average is $50.17.
Reynolds American (NYSE:RAI) last issued its quarterly 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. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The company earned $3.20 billion during the quarter, compared to analysts’ expectations of $3.26 billion. During the same period in the previous year, the firm posted $1.02 EPS. Reynolds American’s revenue was up 33.0% compared to the same quarter last year. Equities research analysts predict that Reynolds American Inc. will post $2.32 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Monday, September 12th were issued a dividend of $0.46 per share. 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. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.93%. Reynolds American’s dividend payout ratio is presently 49.73%.
Several equities research analysts have recently issued reports on the stock. Zacks Investment Research lowered shares of Reynolds American from a “hold” rating to a “sell” rating in a report on Wednesday, July 27th. Jefferies Group assumed coverage on shares of Reynolds American in a report on Wednesday, September 21st. They issued a “buy” rating and a $61.00 target price for the company. Morgan Stanley restated a “hold” rating on shares of Reynolds American in a report on Thursday, September 1st. Berenberg Bank assumed coverage on shares of Reynolds American in a report on Tuesday, June 14th. They issued a “hold” rating and a $54.00 target price for the company. Finally, Cowen and Company restated an “outperform” rating and issued a $57.00 target price on shares of Reynolds American in a report on Tuesday, August 16th. Four research analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have assigned a strong buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $55.86.
Large investors have recently added to or reduced their stakes in the company. Americafirst Capital Management LLC purchased a new position in shares of Reynolds American during the second quarter valued at $109,000. Feltz Wealth PLAN Inc. purchased a new position in shares of Reynolds American during the second quarter valued at $130,000. Quadrant Capital Group LLC boosted its position 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 position 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 position 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. 46.92% of the stock is owned by institutional investors and hedge funds.
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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