Lockheed Martin Investment Management Co. has significantly increased its investment in Altria Group, Inc. (NYSE: MO), raising its stake by an impressive 164.3% during the second quarter of 2023. The investment firm now holds 263,000 shares of Altria after acquiring an additional 163,500 shares, valued at approximately $15.42 million as per its latest filing with the Securities and Exchange Commission (SEC).
This move is part of a broader trend, as several institutional investors have adjusted their positions in Altria. For instance, Jacobi Capital Management LLC increased its holdings by 0.6% in the first quarter, now owning 26,335 shares worth $1.58 million. Similarly, Bar Harbor Wealth Management raised its position by 3.1%, resulting in ownership of 5,656 shares valued at $332,000. Other firms, including Parcion Private Wealth LLC and Wealth Alliance LLC, have also made minor increases in their stakes.
Altria Group’s Stock Performance and Buyback Plan
Altria’s stock opened at $57.17 on Friday and has experienced a 12-month low of $50.08 and a high of $68.60. The company’s market capitalization stands at $96.05 billion, with a price-to-earnings (P/E) ratio of 11.06 and a beta of 0.55.
On October 30, 2023, Altria announced a $2.00 billion stock repurchase program, allowing the company to buy back up to 1.9% of its outstanding shares. Such buyback plans typically indicate that the board believes the shares are undervalued, reflecting confidence in the company’s future performance.
Additionally, Altria recently declared a quarterly dividend of $1.06 per share, paid on October 10, 2023, to shareholders of record on September 15. This marks an increase from the previous dividend of $1.02 per share, representing an annualized dividend of $4.24 and a yield of 7.4%.
Analysts’ Perspectives on Altria Group
Wall Street analysts have expressed varied opinions on Altria’s future. Barclays raised its target price from $49.00 to $57.00 while maintaining an “underweight” rating. Weiss Ratings reaffirmed a “buy” rating, and Morgan Stanley increased its target from $57.00 to $62.00, maintaining an “equal weight” rating. Stifel Nicolaus set a price target of $72.00, while The Goldman Sachs Group also raised its target to $72.00 with a “buy” rating.
Currently, Altria has received a consensus rating of “Hold” from analysts, with an average target price of $62.11. The company’s stock remains a significant focus for investors, particularly amid the ongoing adjustments by institutional stakeholders.
Altria Group, Inc. manufactures and sells a variety of smokeable and oral tobacco products in the United States. Its offerings include cigarettes primarily under the Marlboro brand, large cigars and pipe tobacco under the Black & Mild brand, and moist smokeless tobacco products under several other well-known brands.
