Reynolds American Inc. (NYSE:RAI) – Research analysts at Credit Agricole SA reduced their FY2016 EPS estimates for Reynolds American in a report issued on Thursday. Credit Agricole SA analyst M. Lavery now anticipates that the brokerage will earn $2.31 per share for the year, down from their prior estimate of $2.33. Credit Agricole SA currently has a “Outperform” rating and a $54.00 target price on the stock.
Reynolds American (NYSE:RAI) last issued its earnings results 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. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The business had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion. During the same quarter last year, the firm posted $1.02 earnings per share. Reynolds American’s revenue was up 33.0% on a year-over-year basis.
Several other analysts have also issued reports on RAI. Goldman Sachs Group Inc. reaffirmed a “buy” rating and set a $57.00 price target (up from $55.00) on shares of Reynolds American in a research report on Friday, July 15th. Zacks Investment Research lowered shares of Reynolds American from a “buy” rating to a “hold” rating in a research report on Tuesday, July 19th. Cowen and Company reaffirmed an “outperform” rating and set a $57.00 price target on shares of Reynolds American in a research report on Tuesday, August 16th. Morgan Stanley reaffirmed a “hold” rating on shares of Reynolds American in a research report on Thursday, September 1st. Finally, Vetr raised shares of Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 price target on the stock in a research report on Thursday, September 8th. Four research analysts have rated the stock with a hold rating, eight have given a buy rating and two have given a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $55.93.
Reynolds American (NYSE:RAI) opened at 47.25 on Monday. The company has a market capitalization of $67.44 billion, a P/E ratio of 12.75 and a beta of 0.40. Reynolds American has a one year low of $44.06 and a one year high of $54.48. The company’s 50-day moving average is $47.99 and its 200 day moving average is $49.94.
The company also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Monday, September 12th were paid a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 3.89%. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date was Thursday, September 8th. Reynolds American’s dividend payout ratio is presently 49.73%.
In other Reynolds American news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the stock in a transaction dated Wednesday, September 28th. The shares were sold at an average price of $48.03, for a total transaction of $31,718,291.55. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.11% of the company’s stock.
A number of large investors have recently made changes to their positions in RAI. AMP Capital Investors Ltd increased its stake in shares of Reynolds American by 9.3% in the first quarter. AMP Capital Investors Ltd now owns 789,202 shares of the company’s stock worth $39,839,000 after buying an additional 67,138 shares during the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Reynolds American by 4.4% in the first quarter. Envestnet Asset Management Inc. now owns 552,059 shares of the company’s stock worth $27,774,000 after buying an additional 23,487 shares during the last quarter. Aviance Capital Management LLC increased its stake in shares of Reynolds American by 30.1% in the second quarter. Aviance Capital Management LLC now owns 549,100 shares of the company’s stock worth $29,613,000 after buying an additional 127,031 shares during the last quarter. Teacher Retirement System of Texas increased its stake in shares of Reynolds American by 6.0% in the second quarter. Teacher Retirement System of Texas now owns 83,284 shares of the company’s stock worth $4,492,000 after buying an additional 4,695 shares during the last quarter. Finally, Schonfeld Strategic Advisors LLC purchased a new stake in shares of Reynolds American during the first quarter worth about $402,000. Hedge funds and other institutional investors own 46.87% of the company’s stock.
About Reynolds American