Altria Group, Inc. (NYSE:MO) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Altria Group has a consensus analyst rating of "Hold" from 11 brokerages, with five buy ratings, four hold ratings, and two sell ratings. The average 1-year price target is about $70.44.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.32 versus estimates of $1.25 and revenue of $4.76 billion versus $4.58 billion expected. Altria also maintained full-year guidance of 5.56 to 5.72 EPS.
• Altria declared a quarterly dividend of $1.06 per share, implying an annualized dividend of $4.24 and a 6.1% yield. The payout ratio is high at 88.7%, while insiders have recently sold shares and hedge funds remain the dominant owners.

Altria Group, Inc. (NYSE:MO - Get Free Report) has earned an average rating of "Hold" from the eleven brokerages that are presently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and five have issued a buy rating on the company. The average 1 year price objective among brokers that have issued a report on the stock in the last year is $70.4444.

Several analysts have recently commented on MO shares. UBS Group upped their price objective on shares of Altria Group from $74.00 to $76.00 and gave the company a "buy" rating in a report on Friday, May 1st. Barclays upped their price objective on shares of Altria Group from $63.00 to $64.00 and gave the company an "underweight" rating in a report on Friday, May 15th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $77.00 price objective on shares of Altria Group in a report on Thursday, April 30th. Morgan Stanley set a $71.00 price objective on shares of Altria Group in a report on Friday, May 1st. Finally, Jefferies Financial Group upped their price objective on shares of Altria Group from $50.00 to $60.00 and gave the company an "underperform" rating in a report on Wednesday.

Insider Buying and Selling

In related news, SVP Charles N. Whitaker sold 27,908 shares of the stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $67.57, for a total transaction of $1,885,743.56. Following the sale, the senior vice president directly owned 180,869 shares of the company's stock, valued at approximately $12,221,318.33. This represents a 13.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Ellen R. Strahlman sold 2,000 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $72.56, for a total transaction of $145,120.00. Following the sale, the director directly owned 25,102 shares in the company, valued at $1,821,401.12. This trade represents a 7.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 35,698 shares of company stock valued at $2,449,191. Corporate insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Altria Group

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Charles Schwab Investment Management Inc. raised its position in shares of Altria Group by 10.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 65,516,916 shares of the company's stock valued at $3,777,931,000 after buying an additional 6,265,780 shares during the last quarter. Marshall Wace LLP increased its position in Altria Group by 286.7% during the third quarter. Marshall Wace LLP now owns 4,479,699 shares of the company's stock worth $295,929,000 after purchasing an additional 3,321,262 shares during the last quarter. Ameriprise Financial Inc. increased its position in Altria Group by 19.4% during the third quarter. Ameriprise Financial Inc. now owns 19,567,823 shares of the company's stock worth $1,285,575,000 after purchasing an additional 3,172,753 shares during the last quarter. SG Americas Securities LLC increased its position in Altria Group by 438.6% during the fourth quarter. SG Americas Securities LLC now owns 3,637,678 shares of the company's stock worth $209,749,000 after purchasing an additional 2,962,270 shares during the last quarter. Finally, Vanguard Group Inc. increased its position in Altria Group by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 160,980,626 shares of the company's stock worth $9,282,143,000 after purchasing an additional 1,903,530 shares during the last quarter. 57.41% of the stock is owned by hedge funds and other institutional investors.

Altria Group Trading Down 3.2%

Shares of Altria Group stock opened at $69.63 on Friday. Altria Group has a 12-month low of $54.70 and a 12-month high of $74.56. The firm has a market capitalization of $116.28 billion, a price-to-earnings ratio of 14.57, a PEG ratio of 2.69 and a beta of 0.48. The firm's 50 day simple moving average is $68.21 and its two-hundred day simple moving average is $64.02.

Altria Group (NYSE:MO - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.25 by $0.07. The business had revenue of $4.76 billion for the quarter, compared to analyst estimates of $4.58 billion. Altria Group had a net margin of 34.34% and a negative return on equity of 298.69%. Altria Group's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.23 EPS. Altria Group has set its FY 2026 guidance at 5.560-5.72 EPS. On average, sell-side analysts predict that Altria Group will post 5.68 EPS for the current fiscal year.

Altria Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Investors of record on Monday, June 15th will be issued a dividend of $1.06 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $4.24 dividend on an annualized basis and a yield of 6.1%. Altria Group's dividend payout ratio is 88.70%.

About Altria Group

Altria Group, Inc NYSE: MO is a U.S.-based consumer goods company whose principal business is the manufacture and sale of tobacco products. Headquartered in Richmond, Virginia, the company's operations are focused primarily on the U.S. market and include the production, marketing and distribution of cigarettes, smokeless tobacco and cigars. Its flagship cigarette franchise in the United States is sold through its operating subsidiaries and is among the most recognizable cigarette brands in the country.

Altria's principal operating businesses include Philip Morris USA (cigarettes), U.S.

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