Goldman Sachs Group Inc. restated their neutral rating on shares of Reynolds American Inc. (NYSE:RAI) in a research note issued to investors on Saturday morning. They currently have a $53.00 price objective on the stock.
RAI has been the subject of several other research reports. Zacks Investment Research cut 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 set 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. Cowen and Company restated an outperform rating and set a $57.00 target price on shares of Reynolds American in a report on Tuesday, August 16th. Finally, Vetr upgraded shares of Reynolds American from a buy rating to a strong-buy rating and set a $56.12 target price for the company in a report on Thursday, September 8th. Four investment 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. Reynolds American currently has a consensus rating of Buy and a consensus target price of $55.93.
Reynolds American (NYSE:RAI) traded down 0.36% during mid-day trading on Friday, hitting $47.27. The stock had a trading volume of 6,043,931 shares. Reynolds American has a one year low of $44.06 and a one year high of $54.48. The company has a 50 day moving average price of $48.06 and a 200 day moving average price of $49.97. The stock has a market cap of $67.47 billion, a P/E ratio of 12.75 and a beta of 0.40.
Reynolds American (NYSE:RAI) last announced its earnings results on Tuesday, July 26th. The company reported $0.58 EPS for the quarter, missing the Thomson Reuters’ 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 business had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion. During the same quarter in the previous year, the company posted $1.02 EPS. The business’s revenue for the quarter was up 33.0% compared to the same quarter last year. On average, equities analysts anticipate that Reynolds American will post $2.32 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Monday, September 12th were paid a $0.46 dividend. The ex-dividend date was Thursday, September 8th. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. This represents a $1.84 annualized dividend and a dividend yield of 3.89%. Reynolds American’s dividend payout ratio is 49.73%.
In related news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the company’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 filing with the SEC, which is available through the SEC website. 0.11% of the stock is currently owned by corporate insiders.
Several institutional investors have recently added to or reduced their stakes in RAI. Canada Pension Plan Investment Board increased its position in 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 period. Hanlon Investment Management Inc. acquired a new position in Reynolds American during the first quarter valued at approximately $4,151,000. State Street Corp increased its stake 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 worth $1,597,726,000 after buying an additional 1,003,117 shares during the last quarter. Optimum Investment Advisors purchased a new stake in shares of Reynolds American during the first quarter worth about $455,000. Finally, Lazard Asset Management LLC increased its stake in shares of Reynolds American by 8.8% in the first quarter. Lazard Asset Management LLC now owns 1,886,236 shares of the company’s stock worth $94,895,000 after buying an additional 153,080 shares during the last quarter. Institutional investors and hedge funds 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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