Shares of Altria Group, Inc. (NYSE:MO) increased by 1.6% during midday trading on Thursday, reaching a high of $67.46 before settling at $66.98. In total, 9,403,891 shares changed hands, which represents a 17% decline from the average session volume of 11,277,672 shares. The stock had closed at $65.92 in the previous session.
Analysts Project Positive Momentum
A series of research firms have recently provided updates on Altria Group’s stock performance. Citigroup raised its price target from $57.00 to $65.00 and assigned a “neutral” rating in a report released on February 9. Similarly, UBS Group lifted its target price from $63.00 to $67.00, classifying the stock as a “buy” in a note dated January 26. Argus upgraded Altria to a “hold” rating on January 13, while Stifel Nicolaus adjusted their price target down from $72.00 to $68.00 but maintained a “buy” rating on January 30.
Overall, five analysts currently rate the stock as a “buy,” while five others have issued “hold” ratings and two assigned “sell” ratings. According to data from MarketBeat, Altria Group holds a consensus rating of “hold” with an average price target of $63.67.
Financial Performance and Dividends
Altria Group’s most recent quarterly earnings report, announced on January 29, revealed earnings per share (EPS) of $1.30, which fell short of the consensus estimate of $1.32 by $0.02. The company reported revenue of $5.08 billion, exceeding expectations of $5.02 billion. Year-over-year, revenue experienced a slight decline of 0.5%. Analysts forecast Altria Group will post an EPS of 5.32 for the current year.
Additionally, Altria recently declared a quarterly dividend of $1.06, which was paid on January 9. Investors who held shares as of December 26 received this dividend, representing an annualized payout of $4.24 and a dividend yield of 6.3%. The ex-dividend date was also on December 26, and the company currently has a dividend payout ratio of 103.16%.
On October 30, the Board of Directors approved a stock repurchase program allowing the company to buy back $2.00 billion in shares, reflecting a belief that the stock is undervalued. This program permits the repurchase of up to 1.9% of its outstanding shares.
Institutional Investors Active in Altria
Several hedge funds have recently adjusted their stakes in Altria Group. CWA Asset Management Group LLC increased its holdings by 8.6% in the third quarter, acquiring an additional 26,624 shares to reach a total of 335,418 shares valued at $22.16 million. Meanwhile, Sumitomo Mitsui Trust Group Inc. raised its position by 1.3%, owning 3,522,209 shares valued at $232.68 million after adding 44,303 shares.
Vanguard Group Inc. also increased its stake by 1.0%, now holding 159,717,148 shares worth approximately $9.36 billion following the purchase of 1,599,923 additional shares. Hedge funds collectively own 57.41% of Altria Group’s stock, indicating significant institutional interest.
Altria Group, headquartered in Richmond, Virginia, primarily engages in the manufacture and sale of tobacco products. Its operations are predominantly focused on the U.S. market, producing and distributing cigarettes, smokeless tobacco, and cigars. The company continues to navigate a challenging regulatory environment while aiming to maintain its position as a key player in the tobacco industry.
