Reynolds American Receives Neutral Rating from Zacks (RAI)
Reynolds American (NYSE:RAI)‘s stock had its “neutral” rating reaffirmed by Zacks in a research report issued to clients and investors on Thursday. They currently have a $63.00 price objective on the stock. Zacks‘s price target indicates a potential upside of 6.17% from the stock’s previous close.
Zacks’ analyst wrote, “Reynolds’ first-quarter 2014 earnings of $0.72 per share missed the Zacks Consensus Estimate by 2.7%. Earnings, however, were in line with the prior-year results. Lower cigarette volume and increased investment behind the Vuse brand of e-cigarettes offset top line gains. Net sales went up 2.8% due to market share gains in all the brands and higher pricing in cigarettes and moist snuff segments. Core brands like Camel, Pall Mall and Santa Fe continued to deliver strong performance. Reynolds’ continuous innovations in the smokeless and moist snuff products are helping it to maintain a dominant share in the category. Moreover, the company’s advancement in the e-cigarette category with the Vuse brand is encouraging. However, the high excise tax and anti-smoking regulations remain a persistent overhang. Again, the tobacco sector is facing declining volume for the past few quarters due to shift in demand from cigarettes to other non-tobacco products. We, therefore, prefer to stay on the sidelines”
Shares of Reynolds American (NYSE:RAI) traded down 0.45% on Thursday, hitting $59.34. The stock had a trading volume of 1,968,635 shares. Reynolds American has a 1-year low of $46.05 and a 1-year high of $60.42. The stock has a 50-day moving average of $57.65 and a 200-day moving average of $52.57. The company has a market cap of $31.808 billion and a P/E ratio of 20.59.
Reynolds American (NYSE:RAI) last announced its earnings results on Wednesday, April 23rd. The company reported $0.72 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.74 by $0.02. The company had revenue of $1.94 billion for the quarter, compared to the consensus estimate of $1.91 billion. During the same quarter last year, the company posted $0.72 earnings per share. Reynolds American’s revenue was up 2.8% compared to the same quarter last year. On average, analysts predict that Reynolds American will post $3.35 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, July 1st. Shareholders of record on Tuesday, June 10th will be paid a dividend of $0.67 per share. This represents a $2.68 annualized dividend and a dividend yield of 4.52%. The ex-dividend date is Friday, June 6th.
Other equities research analysts have also recently issued reports about the stock. Analysts at Bank of America upgraded shares of Reynolds American from a “neutral” rating to a “buy” rating in a research note on Wednesday. They now have a $65.00 price target on the stock, up previously from $63.00. Analysts at Nomura initiated coverage on shares of Reynolds American in a research note on Tuesday, April 8th. They set a “buy” rating and a $66.00 price target on the stock. Four equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average target price of $58.59.
In other Reynolds American news, major shareholder & Williamson Holdings I. Brown sold 72,522 shares of the stock on the open market in a transaction that occurred on Thursday, May 29th. The shares were sold at an average price of $45.12, for a total value of $3,272,192.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Major shareholders that own more than 10% of a company’s shares are required to disclose their sales and purchases with the SEC.
Reynolds American Inc (NYSE:RAI) is a holding company.
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