Reynolds American Inc. (RAI) Shares Gap Up to $49.65
Reynolds American Inc. (NYSE:RAI) 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 traded.
RAI has been the topic of several research reports. Berenberg Bank initiated coverage on Reynolds American in a report on Tuesday, June 14th. They issued a “hold” rating and a $54.00 target price on the stock. Credit Agricole SA raised Reynolds American from an “underperform” rating to an “outperform” rating and lifted their target price for the stock from $52.00 to $54.00 in a report on Monday, August 8th. They noted that the move was a valuation call. Zacks Investment Research cut Reynolds American from a “buy” rating to a “hold” rating in a report on Tuesday, July 19th. Goldman Sachs Group Inc. reaffirmed a “buy” rating and issued a $57.00 target price (up from $55.00) on shares of Reynolds American in a report on Friday, July 15th. Finally, Morgan Stanley reaffirmed a “hold” rating on shares of Reynolds American in a report on Tuesday, April 26th. Three analysts have rated the stock with a hold rating, seven have issued 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 price target of $55.51.
The firm has a market capitalization of $72.22 billion and a price-to-earnings ratio of 13.65. The stock’s 50-day moving average is $51.50 and its 200 day moving average is $50.34.
Reynolds American (NYSE:RAI) last posted its 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. The firm had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion. During the same quarter in the prior year, the firm posted $1.02 earnings per share. The firm’s quarterly revenue was up 33.0% on a year-over-year basis. Equities research analysts forecast that Reynolds American Inc. will post $2.33 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Monday, September 12th will be given a dividend of $0.46 per share. The ex-dividend date is Thursday, September 8th. This represents a $1.84 annualized dividend and a dividend yield of 3.64%. This is a positive change from Reynolds American’s previous quarterly dividend of $0.42.
Other hedge funds and institutional investors recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP increased its position in Reynolds American by 4.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 1,662,536 shares of the company’s stock valued at $76,732,000 after buying an additional 68,355 shares during the period. State of Tennessee Treasury Department increased its position in Reynolds American by 29.9% in the fourth quarter. State of Tennessee Treasury Department now owns 934,424 shares of the company’s stock valued at $43,123,000 after buying an additional 215,019 shares during the period. Stephens Inc. AR increased its position in 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 period. Victory Capital Management Inc. increased its position in Reynolds American by 7.9% in the fourth quarter. Victory Capital Management Inc. now owns 174,475 shares of the company’s stock valued at $8,052,000 after buying an additional 12,826 shares during the period. Finally, KBC Group NV increased its position in Reynolds American by 9.2% in the fourth quarter. KBC Group NV now owns 88,354 shares of the company’s stock valued at $4,078,000 after buying an additional 7,456 shares during the period.
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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