Morgan Dempsey Capital Management LLC raised its stake in shares of Reynolds American Inc. (NYSE:RAI) by 29.0% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 64,436 shares of the company’s stock after buying an additional 14,503 shares during the period. Reynolds American comprises approximately 1.2% of Morgan Dempsey Capital Management LLC’s investment portfolio, making the stock its 18th largest position. Morgan Dempsey Capital Management LLC’s holdings in Reynolds American were worth $3,475,000 at the end of the most recent quarter.
Other large investors have also bought and sold shares of the company. AMP Capital Investors Ltd raised 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 during the period. Envestnet Asset Management Inc. raised 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 during the period. Aviance Capital Management LLC raised its position in Reynolds American by 30.1% in the second quarter. Aviance Capital Management LLC now owns 549,100 shares of the company’s stock valued at $29,613,000 after buying an additional 127,031 shares during the period. 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. raised 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 during the period. Institutional investors and hedge funds own 46.92% of the company’s stock.
Shares of Reynolds American Inc. (NYSE:RAI) traded down 1.07% during mid-day trading on Wednesday, reaching $46.30. 5,085,465 shares of the company were exchanged. The stock has a market capitalization of $66.09 billion, a P/E ratio of 12.49 and a beta of 0.40. The stock has a 50 day moving average price of $48.96 and a 200-day moving average price of $50.17. Reynolds American Inc. 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 data on Tuesday, July 26th. The company reported $0.58 earnings per share for the quarter, missing analysts’ consensus estimates 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 had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion. During the same period in the previous year, the business posted $1.02 EPS. The firm’s revenue for the quarter was up 33.0% compared to the same quarter last year. Analysts predict that Reynolds American Inc. will post $2.32 earnings per share for the current year.
The business also recently disclosed 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. The ex-dividend date of this dividend was Thursday, September 8th. This represents a $1.84 dividend on an annualized basis and a yield of 3.93%. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. Reynolds American’s dividend payout ratio (DPR) is presently 49.73%.
Several analysts have weighed in on the stock. Citigroup Inc. reissued a “buy” rating and set a $57.00 target price on shares of Reynolds American in a research report on Monday, September 26th. Morgan Stanley reissued a “hold” rating on shares of Reynolds American in a research report on Thursday, September 1st. Goldman Sachs Group Inc. downgraded shares of Reynolds American from a “buy” rating to a “neutral” rating and dropped their target price for the stock from $56.00 to $53.00 in a research report on Monday, September 12th. Cowen and Company reissued an “outperform” rating and set a $57.00 target price on shares of Reynolds American in a research report on Tuesday, August 16th. Finally, Berenberg Bank assumed coverage on shares of Reynolds American in a research report on Tuesday, June 14th. They set a “hold” rating and a $54.00 target price on the stock. Four equities research 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 company. Reynolds American currently has a consensus rating of “Buy” and an average price target of $55.86.
In other Reynolds American news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the firm’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 transaction of $31,718,291.55. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Company insiders own 0.11% 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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