Reynolds American Inc. (NYSE:RAI) had its price target boosted by analysts at Jefferies Group from $61.00 to $62.00 in a report released on Tuesday. The firm presently has a “buy” rating on the stock. Jefferies Group’s price target points to a potential upside of 31.69% from the stock’s previous close.
Other equities research analysts also recently issued research reports about the stock. Vetr raised shares of Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 price target on the stock in a research note on Thursday, September 8th. Zacks Investment Research downgraded shares of Reynolds American from a “hold” rating to a “sell” rating in a research note on Wednesday, July 27th. Goldman Sachs Group Inc. reissued a “buy” rating and issued a $57.00 target price (up previously from $55.00) on shares of Reynolds American in a research note on Friday, July 15th. Credit Agricole SA raised shares of Reynolds American from an “underperform” rating to an “outperform” rating and increased their target price for the company from $52.00 to $54.00 in a research note on Monday, August 8th. They noted that the move was a valuation call. Finally, Berenberg Bank began coverage on shares of Reynolds American in a research note on Tuesday, June 14th. They issued a “hold” rating and a $54.00 target price on the stock. Four 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 company’s stock. Reynolds American has a consensus rating of “Buy” and a consensus price target of $55.93.
Reynolds American (NYSE:RAI) opened at 47.08 on Tuesday. The stock has a market capitalization of $67.20 billion, a PE ratio of 12.70 and a beta of 0.40. The company’s 50-day moving average is $48.24 and its 200-day moving average is $50.01. Reynolds American has a 12 month low of $44.06 and a 12 month high of $54.48.
Reynolds American (NYSE:RAI) last released its quarterly earnings results on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.61 by $0.03. The business had revenue of $3.20 billion for the quarter, compared to analysts’ expectations of $3.26 billion. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. Reynolds American’s revenue for the quarter was up 33.0% compared to the same quarter last year. During the same period in the previous year, the company earned $1.02 EPS. Equities research analysts forecast that Reynolds American will post $2.32 EPS for the current year.
The firm also recently announced 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 represents a $1.84 annualized dividend and a yield of 3.91%. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date was Thursday, September 8th. Reynolds American’s dividend payout ratio is presently 49.73%.
In other news, 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 shares were sold at an average price of $48.03, for a total value of $31,718,291.55. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.11% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Columbia Partners L L C Investment Management raised its position in shares of Reynolds American by 112.9% in the first quarter. Columbia Partners L L C Investment Management now owns 20,732 shares of the company’s stock valued at $1,043,000 after buying an additional 10,994 shares during the last quarter. Aviva PLC raised its position in shares of Reynolds American by 1.3% in the first quarter. Aviva PLC now owns 694,862 shares of the company’s stock valued at $34,958,000 after buying an additional 8,920 shares during the last quarter. Canada Pension Plan Investment Board raised its position in shares of Reynolds American by 101,633.9% in the first quarter. Canada Pension Plan Investment Board now owns 791,490 shares of the company’s stock valued at $39,820,000 after buying an additional 790,712 shares during the last quarter. Hanlon Investment Management Inc. bought a new position in shares of Reynolds American during the first quarter valued at approximately $4,151,000. Finally, State Street Corp raised its position in shares of Reynolds American by 3.3% in the first quarter. State Street Corp now owns 31,757,800 shares of the company’s stock valued at $1,597,726,000 after buying an additional 1,003,117 shares during the last quarter. 46.92% of the stock is owned by hedge funds and other institutional investors.
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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