Shares of Altria Group, Inc. (NYSE: MO) experienced a notable increase of 1.6% during midday trading on Thursday, reaching a high of $67.46 before settling at $66.98. This uptick comes on the heels of recent analyst upgrades and the company’s latest earnings report. In total, 9,403,891 shares changed hands, marking a 17% decrease from the average session volume of 11,277,672 shares. The previous closing price for Altria stock was $65.92.
Several research firms have recently reassessed their outlooks on Altria, contributing to the stock’s upward momentum. On February 9, Citigroup raised its price target for Altria from $57.00 to $65.00 while maintaining a “neutral” rating. Similarly, UBS Group increased its target from $63.00 to $67.00 and assigned a “buy” rating in a report on January 26. Additionally, Argus upgraded Altria to a “hold” rating on January 13, while Stifel Nicolaus adjusted its target down from $72.00 to $68.00, also rating it a “buy.”
Analyst ratings reveal a mixed sentiment: five analysts recommend buying the stock, five suggest holding, and two have rated it as a sell. The consensus rating stands at “hold,” with an average price target of $63.67, according to data from MarketBeat.
Recent Earnings and Dividend Announcement
Altria Group recently reported its quarterly earnings on January 29, revealing earnings per share (EPS) of $1.30, slightly below the consensus estimate of $1.32. Revenue for the quarter reached $5.08 billion, surpassing expectations of $5.02 billion, although it represented a 0.5% decline compared to the same quarter last year. The company’s return on equity was notably negative at 287.61%, while its net margin stood at 29.84%.
Moreover, Altria announced a quarterly dividend of $1.06 per share, paid on January 9, which translates to an annualized dividend of $4.24 and a yield of 6.3%. The ex-dividend date was December 26, and the company’s current dividend payout ratio is at 103.16%.
Institutional Investments in Altria
In addition to analyst upgrades, institutional investment activity has also been significant. Numerous hedge funds have recently adjusted their positions in Altria. For instance, CWA Asset Management Group LLC increased its holdings by 8.6% during the third quarter, now owning 335,418 shares valued at approximately $22.2 million. Sumitomo Mitsui Trust Group Inc. also raised its stake by 1.3%, holding 3,522,209 shares worth around $232.7 million.
The Vanguard Group Inc. grew its investment by 1.0%, acquiring an additional 1,599,923 shares valued at approximately $9.36 billion. In total, hedge funds and institutional investors own about 57.41% of Altria’s stock, reflecting strong interest in the company.
Altria Group, headquartered in Richmond, Virginia, is primarily engaged in the manufacture and sale of tobacco products. Its operations focus predominantly on the U.S. market, including the production and distribution of cigarettes, smokeless tobacco, and cigars. The company’s flagship cigarette brand is widely recognized across the country.
As Altria navigates a challenging industry landscape, investor sentiment remains cautiously optimistic, bolstered by analyst recommendations and recent financial performance.
