Investors Buy Large Volume of Call Options on British American Tobacco (NYSE:BTI)

British American Tobacco p.l.c. (NYSE:BTI) was the recipient of unusually large options trading on Thursday. Investors purchased 40,260 call options on the stock. This represents an increase of 327% compared to the average volume of 9,420 call options.

Analysts Set New Price Targets

Several research firms have weighed in on BTI. Weiss Ratings upgraded shares of British American Tobacco from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, February 17th. Kepler Capital Markets initiated coverage on shares of British American Tobacco in a report on Friday, December 12th. They issued a “buy” rating for the company. Citigroup reaffirmed a “buy” rating on shares of British American Tobacco in a research report on Friday, November 28th. Wall Street Zen cut shares of British American Tobacco from a “buy” rating to a “hold” rating in a report on Sunday, March 15th. Finally, Morgan Stanley restated an “underweight” rating on shares of British American Tobacco in a research note on Wednesday, December 10th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $51.00.

Institutional Trading of British American Tobacco

Hedge funds have recently added to or reduced their stakes in the business. Capital International Investors raised its position in British American Tobacco by 0.5% in the fourth quarter. Capital International Investors now owns 64,389,481 shares of the company’s stock worth $3,645,500,000 after acquiring an additional 332,062 shares in the last quarter. Capital Research Global Investors boosted its position in shares of British American Tobacco by 1.2% during the 4th quarter. Capital Research Global Investors now owns 22,333,402 shares of the company’s stock valued at $1,264,512,000 after purchasing an additional 264,511 shares in the last quarter. Orbis Allan Gray Ltd boosted its position in shares of British American Tobacco by 20.7% during the 2nd quarter. Orbis Allan Gray Ltd now owns 14,503,968 shares of the company’s stock valued at $686,473,000 after purchasing an additional 2,482,737 shares in the last quarter. Capital World Investors grew its stake in shares of British American Tobacco by 0.5% in the 4th quarter. Capital World Investors now owns 9,518,567 shares of the company’s stock worth $538,935,000 after purchasing an additional 47,858 shares during the last quarter. Finally, Bank of America Corp DE raised its holdings in shares of British American Tobacco by 29.5% in the 3rd quarter. Bank of America Corp DE now owns 6,934,792 shares of the company’s stock worth $368,099,000 after purchasing an additional 1,578,860 shares in the last quarter. Institutional investors own 16.16% of the company’s stock.

British American Tobacco Price Performance

NYSE:BTI traded down $0.22 during mid-day trading on Thursday, hitting $58.23. The stock had a trading volume of 4,066,609 shares, compared to its average volume of 5,436,456. The company has a current ratio of 0.87, a quick ratio of 0.57 and a debt-to-equity ratio of 0.66. The company has a 50 day simple moving average of $59.93 and a 200-day simple moving average of $56.56. British American Tobacco has a 52 week low of $37.96 and a 52 week high of $63.22.

British American Tobacco Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 8th. Stockholders of record on Tuesday, December 29th will be given a dividend of $0.8349 per share. The ex-dividend date is Tuesday, December 29th. This represents a $3.34 annualized dividend and a dividend yield of 5.7%.

About British American Tobacco

British American Tobacco plc (BTI) is a multinational tobacco manufacturer and nicotine products company headquartered in London. Founded in 1902 as a joint venture to commercialize tobacco products outside the United States, the company has grown into one of the world’s largest tobacco firms with a long history in manufacturing and global distribution of combustible tobacco products.

BAT’s core business remains the manufacture and sale of cigarettes and other tobacco products under a portfolio of well-known consumer brands, including Dunhill, Lucky Strike, Pall Mall, Kent and Rothmans.