Investors Buy Reynolds American Inc. (RAI) on Weakness
Investors bought shares of Reynolds American Inc. (NYSE:RAI) on weakness during trading on Tuesday. $51.61 million flowed into the stock on the tick-up and $24.16 million flowed out of the stock on the tick-down, for a money net flow of $27.45 million into the stock. Of all companies tracked, Reynolds American had the 16th highest net in-flow for the day. Reynolds American traded down ($0.49) for the day and closed at $49.53
Several analysts have weighed in on RAI shares. Berenberg Bank started coverage on shares of Reynolds American in a research note on Tuesday, June 14th. They set a “hold” rating and a $54.00 target price for the company. Cowen and Company reiterated an “outperform” rating and set a $57.00 target price on shares of Reynolds American in a research note on Tuesday, August 16th. Credit Agricole SA upgraded shares of Reynolds American from an “underperform” rating to an “outperform” rating and boosted their target price for the company from $52.00 to $54.00 in a research note on Monday, August 8th. They noted that the move was a valuation call. Zacks Investment Research lowered shares of Reynolds American from a “buy” rating to a “hold” rating in a research note on Tuesday, July 19th. Finally, Goldman Sachs Group Inc. reiterated a “buy” rating and set a $57.00 target price (up previously from $55.00) on shares of Reynolds American in a research note on Friday, July 15th. Three research analysts have rated the stock with a hold rating, seven have given a buy rating and two have assigned a strong buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $55.70.
The company has a market capitalization of $70.70 billion and a PE ratio of 13.36. The stock’s 50-day moving average price is $50.70 and its 200 day moving average price is $50.58.
Reynolds American (NYSE:RAI) last posted its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share for the quarter, missing the consensus estimate of $0.61 by $0.03. The firm earned $3.20 billion during the quarter, compared to the consensus estimate of $3.26 billion. During the same period last year, the company earned $1.02 earnings per share. The company’s revenue for the quarter was up 33.0% compared to the same quarter last year. Equities research analysts forecast that Reynolds American Inc. will post $2.32 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Monday, September 12th will be given a $0.46 dividend. The ex-dividend date is Thursday, September 8th. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. This represents a $1.84 annualized dividend and a yield of 3.71%.
A hedge fund recently raised its stake in Reynolds American stock. Schwab Charles Investment Management Inc. boosted its stake in Reynolds American Inc. (NYSE:RAI) by 6.3% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 2,806,714 shares of the company’s stock after buying an additional 165,164 shares during the period. Schwab Charles Investment Management Inc. owned 0.20% of Reynolds American worth $129,530,000 as of its most recent SEC filing.
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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