Jefferies Group Weighs in on Reynolds American Inc.’s Q3 2016 Earnings (RAI)
Reynolds American Inc. (NYSE:RAI) – Stock analysts at Jefferies Group issued their Q3 2016 earnings per share (EPS) estimates for Reynolds American in a research note issued to investors on Tuesday. Jefferies Group analyst O. Bennett anticipates that the brokerage will post earnings per share of $0.63 for the quarter. Jefferies Group currently has a “Buy” rating and a $62.00 target price on the stock.
Reynolds American (NYSE:RAI) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $0.58 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.61 by $0.03. The firm had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.26 billion. Reynolds American had a net margin of 42.97% and a return on equity of 15.24%. The firm’s revenue for the quarter was up 33.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.02 EPS.
A number of other research firms have also recently commented on RAI. Zacks Investment Research cut Reynolds American from a “buy” rating to a “hold” rating in a research note on Tuesday, July 19th. Goldman Sachs Group Inc. restated a “buy” rating and issued a $57.00 price objective (up from $55.00) on shares of Reynolds American in a research note on Friday, July 15th. 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 on the stock. Cowen and Company restated an “outperform” rating and issued a $57.00 price objective on shares of Reynolds American in a research note on Tuesday, August 16th. Finally, Vetr upgraded Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 price objective on the stock in a research note on Thursday, September 8th. Four equities research analysts have rated the stock with a hold rating, eight have given a buy rating and two have issued a strong buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus price target of $55.93.
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Shares of Reynolds American (NYSE:RAI) traded up 0.50% on Wednesday, reaching $46.62. 1,248,442 shares of the company were exchanged. The company’s 50-day moving average price is $48.35 and its 200 day moving average price is $50.04. The company has a market cap of $66.54 billion, a price-to-earnings ratio of 12.58 and a beta of 0.40. Reynolds American has a 12 month low of $44.06 and a 12 month high of $54.48.
The business also recently disclosed a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Monday, September 12th were given a $0.46 dividend. The ex-dividend date of this dividend was Thursday, September 8th. This represents a $1.84 annualized dividend and a yield of 3.97%. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. Reynolds American’s payout ratio is presently 49.73%.
In related news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the company’s stock in a transaction that occurred on Wednesday, September 28th. The stock was sold at an average price of $48.03, for a total transaction of $31,718,291.55. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.11% of the stock is owned by company insiders.
Institutional investors have recently made changes to their positions in the stock. Columbia Partners L L C Investment Management increased its position in shares of Reynolds American by 112.9% in the first quarter. Columbia Partners L L C Investment Management now owns 20,732 shares of the company’s stock worth $1,043,000 after buying an additional 10,994 shares in the last quarter. Aviva PLC increased its position in shares of Reynolds American by 1.3% in the first quarter. Aviva PLC now owns 694,862 shares of the company’s stock worth $34,958,000 after buying an additional 8,920 shares in the last quarter. Canada Pension Plan Investment Board increased its position in shares of Reynolds American by 101,633.9% in the first quarter. Canada Pension Plan Investment Board now owns 791,490 shares of the company’s stock worth $39,820,000 after buying an additional 790,712 shares in the last quarter. Hanlon Investment Management Inc. acquired a new position in shares of Reynolds American during the first quarter worth approximately $4,151,000. Finally, State Street Corp increased its position in shares of Reynolds American by 3.3% in the first quarter. State Street Corp now owns 31,757,800 shares of the company’s stock worth $1,597,726,000 after buying an additional 1,003,117 shares in the last quarter. Institutional investors own 46.92% of the company’s stock.
About Reynolds American
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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