Reynolds American Inc. (RAI) Coverage Initiated by Analysts at Jefferies Group
Equities researchers at Jefferies Group began coverage on shares of Reynolds American Inc. (NYSE:RAI) in a note issued to investors on Wednesday. The firm set a “buy” rating and a $61.00 price target on the stock. Jefferies Group’s price objective would suggest a potential upside of 25.93% from the stock’s current price.
A number of other research analysts also recently issued reports on RAI. Berenberg Bank initiated coverage on shares of Reynolds American in a research note on Tuesday, June 14th. They issued a “hold” rating and a $54.00 price target for the company. Goldman Sachs Group Inc. reiterated a “buy” rating and issued a $57.00 price target (up previously from $55.00) on shares of Reynolds American in a research note on Friday, July 15th. Zacks Investment Research downgraded shares of Reynolds American from a “buy” rating to a “hold” rating in a research note on Tuesday, July 19th. Credit Agricole SA upgraded shares of Reynolds American from an “underperform” rating to an “outperform” rating and lifted their price target for the stock from $52.00 to $54.00 in a research note on Monday, August 8th. They noted that the move was a valuation call. Finally, Cowen and Company reiterated an “outperform” rating and issued a $57.00 price target on shares of Reynolds American in a research note on Tuesday, August 16th. Four investment 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 stock. Reynolds American currently has an average rating of “Buy” and a consensus target price of $55.86.
Reynolds American (NYSE:RAI) traded up 1.64% during mid-day trading on Wednesday, hitting $48.44. 4,170,175 shares of the stock traded hands. The company has a 50 day moving average of $49.51 and a 200-day moving average of $50.42. The stock has a market cap of $69.14 billion, a PE ratio of 13.07 and a beta of 0.36. Reynolds American has a 12-month low of $41.91 and a 12-month high of $54.48.
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Reynolds American (NYSE:RAI) last issued its quarterly earnings results on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.61 by $0.03. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The firm earned $3.20 billion during the quarter, compared to analysts’ expectations of $3.26 billion. During the same quarter in the prior year, the firm earned $1.02 EPS. The firm’s revenue was up 33.0% compared to the same quarter last year. Equities research analysts forecast that Reynolds American will post $2.32 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Monday, September 12th will be given a $0.46 dividend. This represents a $1.84 dividend on an annualized basis and a yield of 3.80%. This is a positive change from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend is Thursday, September 8th. Reynolds American’s dividend payout ratio (DPR) is 49.73%.
A number of institutional investors have recently bought and sold shares of the stock. Americafirst Capital Management LLC purchased a new position in Reynolds American during the second quarter worth $109,000. Feltz Wealth PLAN Inc. purchased a new position in Reynolds American during the second quarter worth $130,000. Quadrant Capital Group LLC raised its position in Reynolds American by 7.4% in the second quarter. Quadrant Capital Group LLC now owns 2,928 shares of the company’s stock worth $150,000 after buying an additional 203 shares during the period. Community Bank N.A. raised its position in Reynolds American by 148.2% in the second quarter. Community Bank N.A. now owns 2,834 shares of the company’s stock worth $153,000 after buying an additional 1,692 shares during the period. Finally, Benjamin F. Edwards & Company Inc. raised its position in Reynolds American by 155.4% in the second quarter. Benjamin F. Edwards & Company Inc. now owns 2,891 shares of the company’s stock worth $156,000 after buying an additional 1,759 shares during the period. Hedge funds and other institutional investors own 46.92% of the company’s stock.
Reynolds American Company Profile
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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