Reynolds American Inc. (RAI) Trading Down 1.8%
Reynolds American Inc. (NYSE:RAI) shares were down 1.8% during mid-day trading on Wednesday . The company traded as low as $49.03 and last traded at $49.12, with a volume of 2,632,511 shares traded. The stock had previously closed at $50.00.
A number of research analysts recently issued reports on RAI shares. Goldman Sachs Group Inc. reiterated a “buy” rating and set a $54.00 price objective on shares of Reynolds American in a report on Thursday, April 14th. Zacks Investment Research downgraded Reynolds American from a “buy” rating to a “hold” rating in a research note on Tuesday, July 19th. Berenberg Bank assumed coverage on Reynolds American in a research note on Tuesday, June 14th. They issued a “hold” rating and a $54.00 price target for the company. Vetr upgraded Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.66 price target for the company in a research note on Wednesday, April 13th. Finally, Morgan Stanley restated a “hold” rating on shares of Reynolds American in a research note on Tuesday, April 26th. Two analysts have rated the stock with a sell rating, two have given a hold rating, six have assigned a buy rating and two have given a strong buy rating to the stock. Reynolds American currently has a consensus rating of “Buy” and a consensus price target of $55.67.
The firm has a 50 day moving average of $51.72 and a 200-day moving average of $50.24. The stock has a market capitalization of $70.44 billion and a price-to-earnings ratio of 13.32.
Reynolds American (NYSE:RAI) last posted its quarterly earnings results 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. The company earned $3.20 billion during the quarter, compared to analyst estimates of $3.26 billion. During the same quarter in the prior year, the business posted $1.02 earnings per share. The business’s revenue for the quarter was up 33.0% compared to the same quarter last year. Equities analysts predict that Reynolds American Inc. will post $2.33 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Monday, September 12th will be paid a dividend of $0.46 per share. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. This represents a $1.84 dividend on an annualized basis and a yield of 3.73%. The ex-dividend date is Thursday, September 8th.
In related news, CEO Susan M. Cameron sold 105,766 shares of the company’s stock in a transaction that occurred on Monday, May 9th. The stock was sold at an average price of $49.88, for a total transaction of $5,275,608.08. Following the transaction, the chief executive officer now directly owns 565,247 shares of the company’s stock, valued at approximately $28,194,520.36. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Thomas C. Wajnert sold 5,000 shares of the company’s stock in a transaction that occurred on Monday, May 9th. The stock was sold at an average price of $49.82, for a total value of $249,100.00. Following the transaction, the director now directly owns 30,000 shares in the company, valued at $1,494,600. The disclosure for this sale can be found here.
A number of hedge funds recently modified their holdings of RAI. Roosevelt Investment Group Inc. raised 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 worth $1,238,000 after buying an additional 1,219 shares in the last quarter. Veritable L.P. raised 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 worth $2,422,000 after buying an additional 4,684 shares in the last quarter. Trexquant Investment LP bought a new stake in shares of Reynolds American during the fourth quarter worth approximately $3,055,000. Advantus Capital Management Inc raised its stake in shares of Reynolds American by 3.5% in the fourth quarter. Advantus Capital Management Inc now owns 80,525 shares of the company’s stock worth $3,716,000 after buying an additional 2,738 shares in the last quarter. Finally, Employees Retirement System of Texas raised its stake in shares of Reynolds American by 60.5% in the fourth quarter. Employees Retirement System of Texas now owns 85,680 shares of the company’s stock worth $3,954,000 after buying an additional 32,300 shares in 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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