Reynolds American Inc. (NYSE:RAI) – Research analysts at Jefferies Group issued their FY2018 earnings estimates for shares of Reynolds American in a research report issued on Wednesday. Jefferies Group analyst O. Bennett anticipates that the brokerage will earn $2.78 per share for the year. Jefferies Group has a “Buy” rating and a $61.00 price objective on the stock. Jefferies Group also issued estimates for Reynolds American’s FY2019 earnings at $3.03 EPS.
Reynolds American (NYSE:RAI) last released its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.61 by $0.03. The company had revenue of $3.20 billion for the quarter, compared to the consensus estimate of $3.26 billion. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The company’s quarterly revenue was up 33.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.02 EPS.
A number of other brokerages have also commented on RAI. Credit Agricole SA upgraded Reynolds American from an “underperform” rating to an “outperform” rating and upped their target price for the company from $52.00 to $54.00 in a research report on Monday, August 8th. They noted that the move was a valuation call. Goldman Sachs Group Inc. reiterated a “buy” rating and issued a $57.00 target price (up previously from $55.00) on shares of Reynolds American in a research report on Friday, July 15th. Citigroup Inc. started coverage on Reynolds American in a research report on Monday, September 12th. They issued a “buy” rating and a $57.00 target price on the stock. Vetr upgraded Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 target price on the stock in a research report on Thursday, September 8th. Finally, Cowen and Company reiterated an “outperform” rating and issued a $57.00 target price on shares of Reynolds American in a research report on Tuesday, August 16th. Four analysts have rated the stock with a hold rating, eight have issued a buy rating and two have assigned a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $55.86.
Reynolds American (NYSE:RAI) traded up 0.89% during midday trading on Thursday, hitting $48.87. 2,598,865 shares of the stock traded hands. The firm has a market cap of $69.75 billion, a PE ratio of 13.19 and a beta of 0.36. Reynolds American has a 12 month low of $41.91 and a 12 month high of $54.48. The company’s 50 day moving average price is $49.47 and its 200 day moving average price is $50.40.
The firm also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Monday, September 12th will be paid a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a dividend yield of 3.80%. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date is Thursday, September 8th. Reynolds American’s dividend payout ratio is presently 49.73%.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. AMP Capital Investors Ltd increased its position in Reynolds American by 9.3% in the first quarter. AMP Capital Investors Ltd now owns 789,202 shares of the company’s stock valued at $39,839,000 after buying an additional 67,138 shares in the last quarter. Envestnet Asset Management Inc. increased its position in Reynolds American by 4.4% in the first quarter. Envestnet Asset Management Inc. now owns 552,059 shares of the company’s stock valued at $27,774,000 after buying an additional 23,487 shares in the last quarter. Teacher Retirement System of Texas increased its position in Reynolds American by 6.0% in the second quarter. Teacher Retirement System of Texas now owns 83,284 shares of the company’s stock valued at $4,492,000 after buying an additional 4,695 shares in the last quarter. Schonfeld Strategic Advisors LLC purchased a new position in Reynolds American during the first quarter valued at approximately $402,000. Finally, Raymond James Trust N.A. increased its position in Reynolds American by 7.3% in the second quarter. Raymond James Trust N.A. now owns 109,494 shares of the company’s stock valued at $5,905,000 after buying an additional 7,441 shares in 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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