Reynolds American Inc. (RAI) Earns Buy Rating from Analysts at Jefferies Group
Equities researchers at Jefferies Group began coverage on shares of Reynolds American Inc. (NYSE:RAI) in a research note issued on Wednesday. The firm set a “buy” rating on the stock.
RAI has been the subject of several other research reports. Goldman Sachs Group Inc. downgraded Reynolds American from a “buy” rating to a “neutral” rating and lowered their price objective for the company from $56.00 to $53.00 in a research note on Monday, September 12th. Zacks Investment Research raised Reynolds American from a “sell” rating to a “hold” rating in a research note on Wednesday, August 10th. Credit Agricole SA raised Reynolds American from an “underperform” rating to an “outperform” rating and upped their price objective for the company from $52.00 to $54.00 in a research note on Monday, August 8th. They noted that the move was a valuation call. Berenberg Bank started coverage on Reynolds American in a research note on Tuesday, June 14th. They issued a “hold” rating and a $54.00 price objective for the company. Finally, Cowen and Company reaffirmed an “outperform” rating and issued a $57.00 price objective on shares of Reynolds American in a research note 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 assigned a strong buy rating to the company’s stock. Reynolds American currently has an average rating of “Buy” and an average price target of $55.43.
Reynolds American (NYSE:RAI) opened at 47.66 on Wednesday. Reynolds American has a 52 week low of $41.91 and a 52 week high of $54.48. The company has a market cap of $68.03 billion, a price-to-earnings ratio of 12.86 and a beta of 0.36. The firm has a 50-day moving average of $49.51 and a 200-day moving average of $50.42.
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Reynolds American (NYSE:RAI) last posted its earnings results on Tuesday, July 26th. The company reported $0.58 EPS for the quarter, missing analysts’ consensus estimates of $0.61 by $0.03. The company earned $3.20 billion during 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 was up 33.0% compared to the same quarter last year. During the same period last year, the company posted $1.02 EPS. Equities analysts forecast that Reynolds American will post $2.32 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Shareholders of record on Monday, September 12th will be issued a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.86%. This is a boost 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 is presently 49.73%.
Several institutional investors have recently bought and sold shares of the company. Williams Jones & Associates LLC boosted its position in Reynolds American by 213.6% in the second quarter. Williams Jones & Associates LLC now owns 19,398 shares of the company’s stock worth $1,046,000 after buying an additional 13,212 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund acquired a new position in Reynolds American during the second quarter worth about $1,803,000. Kentucky Retirement Systems acquired a new position in Reynolds American during the second quarter worth about $3,797,000. Mason Street Advisors LLC acquired a new position in Reynolds American during the second quarter worth about $6,014,000. Finally, Northwestern Mutual Wealth Management Co. boosted its position in Reynolds American by 56.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 13,003 shares of the company’s stock worth $702,000 after buying an additional 4,697 shares during the last quarter. 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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