Altria Group (NYSE:MO) Shares Down 1.6% - Time to Sell?

Key Points

• Shares fell 1.6% to $67.06 on Thursday with volume around 12.13M (up ~18% versus average), and the stock is trading above its 50‑ and 200‑day moving averages (~$62.92 and $62.61).
• Analysts are mixed — consensus rating is Hold with an average price target of $64.33 (5 Buy, 5 Hold, 2 Sell) following recent target adjustments.
• Altria announced a quarterly dividend of $1.06 (annualized $4.24) for a 6.3% yield, but the dividend payout ratio is about 103%, which may raise sustainability concerns.

Altria Group, Inc. (NYSE:MO - Get Free Report) shares dropped 1.6% during trading on Thursday . The stock traded as low as $66.16 and last traded at $67.06. Approximately 12,130,194 shares changed hands during mid-day trading, an increase of 18% from the average daily volume of 10,240,459 shares. The stock had previously closed at $68.12.

Analysts Set New Price Targets

MO has been the topic of several recent research reports. Argus upgraded Altria Group to a "hold" rating in a report on Tuesday, January 13th. Stifel Nicolaus cut their target price on Altria Group from $72.00 to $68.00 and set a "buy" rating on the stock in a report on Friday, January 30th. Barclays lifted 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. Citigroup upped their price objective on shares of Altria Group from $57.00 to $65.00 and gave the stock a "neutral" rating in a report on Monday, February 9th. Finally, UBS Group lifted their price objective on shares of Altria Group from $63.00 to $67.00 and gave the company a "buy" rating in a report on Monday, January 26th. Five investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $64.33.

Altria Group Price Performance

The company's fifty day moving average price is $62.92 and its 200 day moving average price is $62.61. The company has a market cap of $112.12 billion, a PE ratio of 16.32, a P/E/G ratio of 2.96 and a beta of 0.45.

Altria Group (NYSE:MO - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The company reported $1.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.32 by ($0.02). Altria Group had a negative return on equity of 287.61% and a net margin of 29.84%.During the same quarter in the prior year, the company earned $1.30 earnings per share. The company's quarterly revenue was down .5% on a year-over-year basis. On average, analysts forecast that Altria Group, Inc. will post 5.32 EPS for the current year.

Altria Group Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Wednesday, March 25th will be given a dividend of $1.06 per share. This represents a $4.24 dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date of this dividend is Wednesday, March 25th. Altria Group's dividend payout ratio is currently 103.16%.

Institutional Trading of Altria Group

Hedge funds and other institutional investors have recently modified their holdings of the business. CWA Asset Management Group LLC increased its position in shares of Altria Group by 8.6% during the third quarter. CWA Asset Management Group LLC now owns 335,418 shares of the company's stock valued at $22,158,000 after buying an additional 26,624 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its holdings in shares of Altria Group by 1.3% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 3,522,209 shares of the company's stock valued at $232,677,000 after purchasing an additional 44,303 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Altria Group by 7.2% during the third quarter. JPMorgan Chase & Co. now owns 12,073,682 shares of the company's stock valued at $797,587,000 after buying an additional 814,665 shares during the last quarter. Vanguard Group Inc. boosted its stake in Altria Group by 1.0% in the 2nd quarter. Vanguard Group Inc. now owns 159,717,148 shares of the company's stock worth $9,364,216,000 after purchasing an additional 1,599,923 shares in the last quarter. Finally, Silver Oak Securities Incorporated lifted its stake in shares of Altria Group by 155.4% in the third quarter. Silver Oak Securities Incorporated now owns 31,220 shares of the company's stock worth $2,062,000 after buying an additional 18,997 shares in the last quarter. Institutional investors own 57.41% of the company's stock.

Altria Group Company Profile

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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