Altria Group (NYSE:MO) Trading 2.4% Higher – Still a Buy?

Altria Group, Inc. (NYSE:MO)’s stock price traded up 2.4% during trading on Wednesday . The stock traded as high as $66.46 and last traded at $65.9180. 12,237,921 shares changed hands during trading, an increase of 8% from the average session volume of 11,345,132 shares. The stock had previously closed at $64.40.

Analysts Set New Price Targets

A number of equities analysts recently commented on MO shares. Argus upgraded Altria Group to a “hold” rating in a research report on Tuesday, January 13th. UBS Group lifted their price objective on shares of Altria Group from $63.00 to $67.00 and gave the company a “buy” rating in a report on Monday, January 26th. Stifel Nicolaus lowered their price objective on Altria Group from $72.00 to $68.00 and set a “buy” rating for the company in a research report on Friday, January 30th. Finally, Citigroup increased their price objective on shares of Altria Group from $57.00 to $65.00 and gave the company a “neutral” rating in a research report on Monday. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $63.67.

Altria Group Trading Up 2.4%

The firm has a market capitalization of $110.65 billion, a PE ratio of 16.04, a P/E/G ratio of 3.55 and a beta of 0.47. The company has a fifty day moving average price of $59.91 and a two-hundred day moving average price of $62.05.

Altria Group (NYSE:MO) last released its quarterly earnings results on Thursday, January 29th. The company reported $1.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.32 by ($0.02). Altria Group had a negative return on equity of 287.61% and a net margin of 29.84%.The firm had revenue of $5.08 billion for the quarter, compared to analysts’ expectations of $5.02 billion. During the same quarter in the prior year, the business earned $1.30 EPS. The company’s quarterly revenue was down .5% compared to the same quarter last year. As a group, equities research analysts predict that Altria Group, Inc. will post 5.32 earnings per share for the current year.

Altria Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 26th were given a $1.06 dividend. The ex-dividend date was Friday, December 26th. This represents a $4.24 annualized dividend and a yield of 6.4%. Altria Group’s dividend payout ratio is 103.16%.

Altria Group announced that its Board of Directors has authorized a stock repurchase program on Thursday, October 30th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to buy up to 1.9% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board believes its shares are undervalued.

Institutional Trading of Altria Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in shares of Altria Group by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 160,980,626 shares of the company’s stock valued at $9,282,143,000 after purchasing an additional 1,903,530 shares during the period. State Street Corp increased its stake in Altria Group by 1.2% in the 2nd quarter. State Street Corp now owns 72,367,263 shares of the company’s stock valued at $4,315,438,000 after buying an additional 886,583 shares during the period. Geode Capital Management LLC raised its position in Altria Group by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 45,984,718 shares of the company’s stock worth $2,651,383,000 after buying an additional 729,999 shares during the last quarter. Ameriprise Financial Inc. lifted its stake in shares of Altria Group by 19.4% in the 3rd quarter. Ameriprise Financial Inc. now owns 19,567,823 shares of the company’s stock worth $1,285,575,000 after acquiring an additional 3,172,753 shares during the period. Finally, Northern Trust Corp lifted its stake in shares of Altria Group by 0.4% in the 3rd quarter. Northern Trust Corp now owns 16,705,159 shares of the company’s stock worth $1,103,543,000 after acquiring an additional 59,189 shares during the period. 57.41% of the stock is owned by hedge funds and other institutional investors.

About Altria Group

Altria Group, Inc (NYSE: MO) is a U.S.-based consumer goods company whose principal business is the manufacture and sale of tobacco products. Headquartered in Richmond, Virginia, the company’s operations are focused primarily on the U.S. market and include the production, marketing and distribution of cigarettes, smokeless tobacco and cigars. Its flagship cigarette franchise in the United States is sold through its operating subsidiaries and is among the most recognizable cigarette brands in the country.

Altria’s principal operating businesses include Philip Morris USA (cigarettes), U.S.