Reynolds American Inc. (RAI) Now Covered by Analysts at Jefferies Group
Jefferies Group began coverage on shares of Reynolds American Inc. (NYSE:RAI) in a research report sent to investors on Wednesday. The firm issued a buy rating and a $61.00 price objective on the stock.
A number of other analysts also recently weighed in on the company. Citigroup Inc. started coverage on Reynolds American in a report on Monday, September 12th. They set a buy rating and a $57.00 price target for the company. Goldman Sachs Group Inc. downgraded Reynolds American from a buy rating to a neutral rating and decreased their price target for the stock from $56.00 to $53.00 in a report on Monday, September 12th. Vetr upgraded Reynolds American from a buy rating to a strong-buy rating and set a $56.12 price target for the company in a report on Thursday, September 8th. Morgan Stanley reiterated a hold rating on shares of Reynolds American in a report on Thursday, September 1st. Finally, Cowen and Company reiterated an outperform rating and set a $57.00 price target on shares of Reynolds American in a report on Tuesday, August 16th. Four equities 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. The company presently has a consensus rating of Buy and a consensus price target of $55.86.
Reynolds American (NYSE:RAI) traded up 0.4750% during mid-day trading on Wednesday, reaching $48.6701. The company had a trading volume of 415,734 shares. Reynolds American has a one year low of $41.91 and a one year high of $54.48. The company has a market capitalization of $69.47 billion, a P/E ratio of 13.1328 and a beta of 0.36. The stock has a 50 day moving average price of $49.47 and a 200 day moving average price of $50.40.
Reynolds American (NYSE:RAI) last announced its earnings results on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.61 by $0.03. The company had revenue of $3.20 billion for the quarter, compared to the consensus estimate of $3.26 billion. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The firm’s revenue for the quarter was up 33.0% on a year-over-year basis. During the same period in the prior year, the business earned $1.02 earnings per share. On average, equities analysts expect that Reynolds American will post $2.32 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Shareholders of record on Monday, September 12th will be paid a dividend of $0.46 per share. The ex-dividend date is Thursday, September 8th. This represents a $1.84 dividend on an annualized basis and a yield of 3.80%. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. Reynolds American’s payout ratio is 49.73%.
Institutional investors have recently added to or reduced their stakes in the stock. AMP Capital Investors Ltd increased its position in 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 period. Envestnet Asset Management Inc. boosted its position in Reynolds American by 4.4% in the first quarter. Envestnet Asset Management Inc. now owns 552,059 shares of the company’s stock valued at $27,774,000 after buying an additional 23,487 shares in the last quarter. Teacher Retirement System of Texas boosted its position in Reynolds American by 6.0% in the second quarter. Teacher Retirement System of Texas now owns 83,284 shares of the company’s stock valued at $4,492,000 after buying an additional 4,695 shares in the last quarter. Schonfeld Strategic Advisors LLC purchased a new position in Reynolds American during the first quarter valued at approximately $402,000. Finally, Raymond James Trust N.A. boosted its position in Reynolds American by 7.3% in the second quarter. Raymond James Trust N.A. now owns 109,494 shares of the company’s stock valued at $5,905,000 after buying an additional 7,441 shares in the last quarter. Institutional investors and hedge funds own 46.92% of the company’s stock.
About Reynolds American
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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