Reynolds American Inc. (RAI) Announces Quarterly Earnings Results
Reynolds American Inc. (NYSE:RAI) posted its earnings results on Wednesday. The company reported $0.61 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.65 by $0.04. Reynolds American had a return on equity of 15.24% and a net margin of 42.97%. The business earned $3.21 billion during the quarter, compared to analyst estimates of $3.31 billion.
Reynolds American (NYSE:RAI) opened at 47.27 on Wednesday. The firm’s 50-day moving average is $47.91 and its 200 day moving average is $49.92. Reynolds American has a one year low of $44.06 and a one year high of $54.48. The company has a market capitalization of $67.47 billion, a PE ratio of 12.75 and a beta of 0.40.
The firm also recently announced a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Monday, September 12th were issued a dividend of $0.46 per share. This represents a $1.84 annualized dividend and a yield of 3.89%. This is a boost from Reynolds American’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend was Thursday, September 8th. Reynolds American’s dividend payout ratio is presently 49.73%.
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A number of equities research analysts recently weighed in on RAI shares. Credit Agricole SA upgraded shares of Reynolds American from an “underperform” rating to an “outperform” rating and upped their target price for the stock from $52.00 to $54.00 in a report on Monday, August 8th. They noted that the move was a valuation call. Goldman Sachs Group Inc. restated a “buy” rating and issued a $57.00 target price (up previously from $55.00) on shares of Reynolds American in a report on Friday, July 15th. Citigroup Inc. started coverage on shares of Reynolds American in a report on Monday, September 12th. They issued a “buy” rating and a $57.00 target price on the stock. Vetr upgraded shares of Reynolds American from a “buy” rating to a “strong-buy” rating and set a $56.12 target price on the stock in a report on Thursday, September 8th. Finally, Cowen and Company restated an “outperform” rating and issued a $57.00 target price on shares of Reynolds American in a report on Tuesday, August 16th. Four 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. Reynolds American presently has an average rating of “Buy” and a consensus target price of $55.93.
In other news, major shareholder American Tobacco P.L.C British sold 660,385 shares of the business’s stock in a transaction dated Wednesday, September 28th. The shares were sold at an average price of $48.03, for a total transaction of $31,718,291.55. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Company insiders own 0.11% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in RAI. Ameritas Investment Partners Inc. boosted its position in shares of Reynolds American by 3.8% in the second quarter. Ameritas Investment Partners Inc. now owns 19,761 shares of the company’s stock valued at $1,066,000 after buying an additional 720 shares during the last quarter. Bank of Nova Scotia boosted its position in shares of Reynolds American by 6.4% in the second quarter. Bank of Nova Scotia now owns 16,538 shares of the company’s stock valued at $892,000 after buying an additional 990 shares during the last quarter. Columbia Partners L L C Investment Management boosted its position in shares of Reynolds American by 2.6% in the second quarter. Columbia Partners L L C Investment Management now owns 21,278 shares of the company’s stock valued at $1,147,000 after buying an additional 546 shares during the last quarter. Advantus Capital Management Inc boosted its position in shares of Reynolds American by 0.9% in the second quarter. Advantus Capital Management Inc now owns 81,916 shares of the company’s stock valued at $4,418,000 after buying an additional 747 shares during the last quarter. Finally, GAM Holding AG boosted its position in shares of Reynolds American by 2.4% in the second quarter. GAM Holding AG now owns 116,818 shares of the company’s stock valued at $6,300,000 after buying an additional 2,738 shares during the last quarter. 46.87% of the stock is currently owned by hedge funds and other institutional investors.
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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