Brokerages Set Reynolds American Inc. (NYSE:RAI) Target Price at $56.56
Reynolds American Inc. (NYSE:RAI) has received an average recommendation of “Buy” from the fourteen research firms that are currently covering the company. Four research analysts have rated the stock with a hold recommendation, eight have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $56.56.
Several research firms have weighed in on RAI. Vetr upgraded shares of Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 price objective for the company in a research report on Thursday, September 8th. Zacks Investment Research cut shares of Reynolds American from a “hold” rating to a “sell” rating in a research report on Wednesday, July 27th. Goldman Sachs Group Inc. restated a “buy” rating and issued a $57.00 price objective (up previously from $55.00) on shares of Reynolds American in a research report on Friday, July 15th. Jefferies Group began coverage on shares of Reynolds American in a research report on Wednesday, September 21st. They issued a “buy” rating and a $61.00 price objective for the company. Finally, Credit Agricole SA upgraded shares of Reynolds American from an “underperform” rating to an “outperform” rating and raised their price objective for the company from $52.00 to $54.00 in a research report on Monday, August 8th. They noted that the move was a valuation call.
In other news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the firm’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 sale was disclosed in a document filed with the SEC, which is available at the SEC website. 0.11% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RAI. Ngam Advisors L.P. raised its position in Reynolds American by 2.0% in the first quarter. Ngam Advisors L.P. now owns 102,732 shares of the company’s stock valued at $5,168,000 after buying an additional 2,054 shares during the last quarter. Prudential Financial Inc. raised its position in Reynolds American by 32.6% in the first quarter. Prudential Financial Inc. now owns 1,155,896 shares of the company’s stock valued at $58,153,000 after buying an additional 283,900 shares during the last quarter. Gateway Advisory LLC raised its position in Reynolds American by 110.2% in the first quarter. Gateway Advisory LLC now owns 10,767 shares of the company’s stock valued at $542,000 after buying an additional 5,645 shares during the last quarter. BlackRock Fund Advisors raised its position in Reynolds American by 1.7% in the first quarter. BlackRock Fund Advisors now owns 10,658,716 shares of the company’s stock valued at $536,240,000 after buying an additional 174,579 shares during the last quarter. Finally, BlackRock Institutional Trust Company N.A. raised its position in Reynolds American by 0.5% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 20,902,757 shares of the company’s stock valued at $1,051,618,000 after buying an additional 109,385 shares during the last quarter. 46.92% of the stock is currently owned by institutional investors and hedge funds.
Shares of Reynolds American (NYSE:RAI) opened at 46.64 on Monday. The stock’s 50 day moving average is $48.58 and its 200-day moving average is $50.09. The firm has a market cap of $66.57 billion, a price-to-earnings ratio of 12.58 and a beta of 0.40. Reynolds American has a 12-month low of $44.06 and a 12-month high of $54.48.
Reynolds American (NYSE:RAI) last announced its earnings results on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The company’s revenue for the quarter was up 33.0% compared to the same quarter last year. During the same quarter last year, the business earned $1.02 EPS. On average, analysts anticipate that Reynolds American will post $2.32 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Monday, September 12th were paid a $0.46 dividend. This represents a $1.84 annualized dividend and a dividend yield of 3.95%. The ex-dividend date was Thursday, September 8th. This is a positive change from Reynolds American’s previous quarterly dividend of $0.42. Reynolds American’s dividend payout ratio (DPR) is 49.73%.
About Reynolds American
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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