Shares of Reynolds American Inc. (NYSE:RAI) have received an average rating of “Buy” from the fourteen brokerages that are currently covering the stock. Four analysts have rated the stock with a hold rating, eight have issued a buy rating and two have given a strong buy rating to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $56.56.
Several equities analysts have weighed in on the company. Goldman Sachs Group Inc. lowered Reynolds American from a “buy” rating to a “neutral” rating and cut their target price for the company from $56.00 to $53.00 in a research note on Monday, September 12th. Zacks Investment Research raised Reynolds American from a “sell” rating to a “hold” rating in a research note on Wednesday, August 10th. Citigroup Inc. reissued a “buy” rating and issued a $57.00 target price on shares of Reynolds American in a research note on Monday, September 26th. Jefferies Group assumed coverage on Reynolds American in a research note on Wednesday, September 21st. They issued a “buy” rating and a $61.00 target price on the stock. Finally, Credit Agricole SA raised 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.
Shares of Reynolds American (NYSE:RAI) opened at 46.30 on Monday. The firm has a market capitalization of $66.09 billion, a price-to-earnings ratio of 12.49 and a beta of 0.40. The stock’s 50 day moving average price is $48.83 and its 200 day moving average price is $50.14. Reynolds American has a one year low of $44.06 and a one year high of $54.48.
Reynolds American (NYSE:RAI) last issued its quarterly earnings results 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. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The firm had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion. During the same period last year, the company earned $1.02 EPS. The company’s revenue was up 33.0% compared to the same quarter last year. Analysts expect that Reynolds American will post $2.32 EPS for the current fiscal year.
The company also recently disclosed 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 is an increase from Reynolds American’s previous quarterly dividend of $0.42. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.97%. Reynolds American’s dividend payout ratio (DPR) is presently 49.73%.
In related news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the 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 available through this hyperlink. Corporate insiders own 0.11% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of RAI. Franklin Street Advisors Inc. NC increased its position in Reynolds American by 12.0% in the third quarter. Franklin Street Advisors Inc. NC now owns 110,530 shares of the company’s stock worth $5,212,000 after buying an additional 11,810 shares in the last quarter. LifePlan Financial Group Inc increased its position in Reynolds American by 10.0% in the third quarter. LifePlan Financial Group Inc now owns 15,030 shares of the company’s stock worth $709,000 after buying an additional 1,366 shares in the last quarter. Eqis Capital Management Inc. increased its position in Reynolds American by 19.5% in the third quarter. Eqis Capital Management Inc. now owns 21,090 shares of the company’s stock worth $994,000 after buying an additional 3,441 shares in the last quarter. Beacon Financial Group increased its position in Reynolds American by 7.8% in the third quarter. Beacon Financial Group now owns 8,468 shares of the company’s stock worth $399,000 after buying an additional 612 shares in the last quarter. Finally, Williams Jones & Associates LLC increased its position in Reynolds American by 213.6% in the second quarter. Williams Jones & Associates LLC now owns 19,398 shares of the company’s stock worth $1,046,000 after buying an additional 13,212 shares in the last quarter. Hedge funds and other institutional investors own 46.92% of the company’s stock.
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).
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