Reynolds American Inc. (RAI) Shares Gap Up to $49.65
Reynolds American Inc. (NYSE:RAI)’s share price gapped up prior to trading on Thursday . The stock had previously closed at $49.61, but opened at $49.65. Reynolds American shares last traded at $50.06, with a volume of 2,858,132 shares.
RAI has been the subject of a number of recent analyst reports. Credit Agricole SA raised shares of Reynolds American from an “underperform” rating to an “outperform” rating and raised their price objective for the stock from $52.00 to $54.00 in a research note on Monday. They noted that the move was a valuation call. Goldman Sachs Group Inc. reaffirmed a “buy” rating and issued a $57.00 price objective (up previously from $55.00) on shares of Reynolds American in a research note on Friday, July 15th. Morgan Stanley reaffirmed a “hold” rating on shares of Reynolds American in a research note on Tuesday, April 26th. Berenberg Bank initiated coverage on shares of Reynolds American in a research note on Tuesday, June 14th. They issued a “hold” rating and a $54.00 price objective for the company. Finally, Zacks Investment Research lowered shares of Reynolds American from a “buy” rating to a “hold” rating in a research note on Tuesday, July 19th. Three research analysts have rated the stock with a hold rating, seven have assigned a buy rating and two have issued a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $55.51.
The firm has a market capitalization of $71.51 billion and a price-to-earnings ratio of 13.52. The stock’s 50 day moving average is $51.50 and its 200-day moving average is $50.32.
Reynolds American (NYSE:RAI) last announced its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.61 by $0.03. During the same quarter in the prior year, the company earned $1.02 EPS. The company had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion. Reynolds American’s revenue for the quarter was up 33.0% compared to the same quarter last year. On average, equities research analysts forecast that Reynolds American Inc. will post $2.33 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Monday, September 12th will be issued a $0.46 dividend. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date is Thursday, September 8th. This represents a $1.84 annualized dividend and a yield of 3.67%.
A number of large investors have recently modified their holdings of RAI. Veritable L.P. increased its stake in shares of Reynolds American by 9.8% in the fourth quarter. Veritable L.P. now owns 52,488 shares of the company’s stock valued at $2,422,000 after buying an additional 4,684 shares during the last quarter. Trexquant Investment LP purchased a new stake in shares of Reynolds American during the fourth quarter valued at approximately $3,055,000. Stephens Inc. AR increased its stake in shares of Reynolds American by 9.1% in the fourth quarter. Stephens Inc. AR now owns 259,146 shares of the company’s stock valued at $11,960,000 after buying an additional 21,569 shares during the last quarter. Gluskin Sheff & Assoc Inc. increased its stake in shares of Reynolds American by 17.5% in the fourth quarter. Gluskin Sheff & Assoc Inc. now owns 490,690 shares of the company’s stock valued at $22,645,000 after buying an additional 73,130 shares during the last quarter. Finally, Roosevelt Investment Group Inc. increased its stake in shares of Reynolds American by 4.8% in the fourth quarter. Roosevelt Investment Group Inc. now owns 26,820 shares of the company’s stock valued at $1,238,000 after buying an additional 1,219 shares during the last quarter.
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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