Altria Group (NYSE:MO) Shares Down 1.1% - Here's Why

Key Points

• Shares fell 1.1% to about $64.21 on Friday with volume down ~6% versus the average, while analysts are mixed — the stock's consensus rating is "Hold" with an average target of $65.88 (5 Buy, 4 Hold, 2 Sell).
• Altria declared a quarterly dividend of $1.06 (annualized $4.24) with an ex-dividend date of March 25 and a yield of 6.6%, but the payout ratio is a high 103.16%, raising sustainability questions.
• Quarterly results showed EPS of $1.30, missing estimates by $0.02 while revenue of $5.08B slightly beat forecasts; the company has a market cap of $107.3B and a P/E of 15.62, but reported a negative ROE (-287.61%).

Shares of Altria Group, Inc. (NYSE:MO - Get Free Report) fell 1.1% during trading on Friday . The stock traded as low as $64.08 and last traded at $64.2130. 9,401,727 shares traded hands during trading, a decline of 6% from the average session volume of 10,025,398 shares. The stock had previously closed at $64.94.

Analyst Ratings Changes

Several research firms recently commented on MO. Jefferies Financial Group increased their target price on shares of Altria Group from $47.00 to $50.00 and gave the company an "underperform" rating in a research note on Wednesday, March 4th. Barclays upped their price target on shares of Altria Group from $57.00 to $63.00 and gave the company an "underweight" rating in a research report on Monday, February 23rd. Argus upgraded shares of Altria Group to a "hold" rating in a research report on Tuesday, January 13th. Stifel Nicolaus reduced their price target on shares of Altria Group from $72.00 to $68.00 and set a "buy" rating for the company in a research report on Friday, January 30th. Finally, Citigroup upped their price target on shares of Altria Group from $57.00 to $65.00 and gave the company a "neutral" rating in a research report on Monday, February 9th. Five research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $65.88.

Altria Group Stock Performance

The stock has a market cap of $107.32 billion, a price-to-earnings ratio of 15.62, a price-to-earnings-growth ratio of 2.58 and a beta of 0.41. The company's 50 day simple moving average is $66.61 and its two-hundred day simple moving average is $62.63.

Altria Group (NYSE:MO - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The company reported $1.30 earnings per share for the quarter, missing the consensus estimate of $1.32 by ($0.02). The company had revenue of $5.08 billion during the quarter, compared to analyst estimates of $5.02 billion. Altria Group had a net margin of 29.84% and a negative return on equity of 287.61%. The firm's quarterly revenue was down .5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.30 EPS. On average, equities research analysts predict that Altria Group, Inc. will post 5.32 earnings per share for the current fiscal year.

Altria Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Wednesday, March 25th will be paid a $1.06 dividend. This represents a $4.24 annualized dividend and a yield of 6.6%. The ex-dividend date is Wednesday, March 25th. Altria Group's dividend payout ratio is currently 103.16%.

Insiders Place Their Bets

In other Altria Group news, SVP Charles N. Whitaker sold 27,908 shares of the company's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $67.57, for a total value of $1,885,743.56. Following the transaction, the senior vice president owned 180,869 shares in the company, valued at approximately $12,221,318.33. This represents a 13.37% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its stake in shares of Altria Group by 64.7% during the 4th quarter. Brighton Jones LLC now owns 17,702 shares of the company's stock worth $926,000 after purchasing an additional 6,954 shares during the last quarter. Sivia Capital Partners LLC increased its stake in shares of Altria Group by 86.3% during the 2nd quarter. Sivia Capital Partners LLC now owns 6,361 shares of the company's stock worth $373,000 after purchasing an additional 2,946 shares during the last quarter. Schnieders Capital Management LLC. increased its stake in shares of Altria Group by 6.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,630 shares of the company's stock worth $565,000 after purchasing an additional 618 shares during the last quarter. Gamco Investors INC. ET AL acquired a new position in shares of Altria Group during the 2nd quarter worth $346,000. Finally, AXA S.A. acquired a new position in shares of Altria Group during the 2nd quarter worth $5,752,000. Institutional investors and hedge funds own 57.41% of the company's stock.

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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