FY2016 EPS Estimates for Reynolds American Inc. (RAI) Cut by Analyst
Reynolds American Inc. (NYSE:RAI) – Research analysts at Credit Agricole SA reduced their FY2016 earnings per share estimates for shares of Reynolds American in a report issued on Thursday. Credit Agricole SA analyst M. Lavery now forecasts that the brokerage will earn $2.31 per share for the year, down from their prior forecast of $2.33. Credit Agricole SA currently has a “Outperform” rating and a $54.00 target price on the stock.
RAI has been the subject of a number of other research reports. Goldman Sachs Group Inc. reiterated a “neutral” rating and issued a $53.00 price objective on shares of Reynolds American in a report on Saturday. Zacks Investment Research downgraded shares of Reynolds American from a “hold” rating to a “sell” rating in a report on Wednesday, July 27th. Jefferies Group began coverage on shares of Reynolds American in a report on Wednesday, September 21st. They issued a “buy” rating and a $61.00 price objective for the company. Morgan Stanley reiterated a “hold” rating on shares of Reynolds American in a report on Thursday, September 1st. Finally, Cowen and Company reiterated an “outperform” rating and issued a $57.00 price objective on shares of Reynolds American in a report on Tuesday, August 16th. Four investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have assigned a strong buy rating to the company. The stock has a consensus rating of “Buy” and an average price target of $55.93.
Shares of Reynolds American (NYSE:RAI) opened at 47.27 on Monday. Reynolds American has a one year low of $44.06 and a one year high of $54.48. The company has a 50 day moving average price of $48.06 and a 200-day moving average price of $49.97. The stock has a market cap of $67.47 billion, a price-to-earnings ratio of 12.75 and a beta of 0.40.
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Reynolds American (NYSE:RAI) last announced 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. The firm earned $3.20 billion during the quarter, compared to analysts’ expectations 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% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.02 EPS.
Institutional investors have recently bought and sold shares of the company. Jackson Grant Investment Advisers Inc. boosted its position in Reynolds American by 0.8% in the second quarter. Jackson Grant Investment Advisers Inc. now owns 3,198 shares of the company’s stock worth $172,000 after buying an additional 25 shares during the last quarter. Dynamic Advisors Solutions LLC boosted its position in Reynolds American by 0.6% in the second quarter. Dynamic Advisors Solutions LLC now owns 6,886 shares of the company’s stock worth $371,000 after buying an additional 44 shares during the last quarter. Williams Jones & Associates LLC boosted its position in Reynolds American by 0.8% in the first quarter. Williams Jones & Associates LLC now owns 6,186 shares of the company’s stock worth $311,000 after buying an additional 50 shares during the last quarter. Karp Capital Management Corp boosted its position in Reynolds American by 1.2% in the second quarter. Karp Capital Management Corp now owns 4,370 shares of the company’s stock worth $236,000 after buying an additional 51 shares during the last quarter. Finally, Citizens Financial Group Inc RI boosted its position in Reynolds American by 1.2% in the first quarter. Citizens Financial Group Inc RI now owns 5,519 shares of the company’s stock worth $278,000 after buying an additional 66 shares during the last quarter. 46.92% of the stock is owned by hedge funds and other institutional investors.
In related news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the stock in a transaction that occurred on Wednesday, September 28th. The shares were sold at an average price of $48.03, for a total transaction of $31,718,291.55. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.11% of the company’s stock.
The company also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Stockholders of record on Monday, September 12th were issued a dividend of $0.46 per share. The ex-dividend date was Thursday, September 8th. This represents a $1.84 dividend on an annualized basis and a dividend yield of 3.89%. This is an increase from Reynolds American’s previous quarterly dividend of $0.42. Reynolds American’s dividend payout ratio (DPR) is currently 49.73%.
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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