Altria Group (NYSE:MO) Shares Up 1.9% - Time to Buy?

Key Points

• Shares rose 1.9% to $67.63 on Thursday; analysts are mixed with an average rating of "Hold" and an average price target of $65.11 (range includes UBS at $74 and several lower targets).
• The company declared a quarterly dividend of $1.06 (annualized $4.24), yielding 6.3%, but the dividend payout ratio is a high 103.16%, which may raise sustainability concerns.
• Altria reported Q results of $1.30 EPS (missed by $0.02) and revenue down 0.5% year-over-year, while an SVP recently sold 27,908 shares, reducing their stake by 13.37%.

Shares of Altria Group, Inc. (NYSE:MO - Get Free Report) shot up 1.9% on Thursday . The company traded as high as $67.73 and last traded at $67.6320. 8,785,944 shares traded hands during trading, a decline of 13% from the average session volume of 10,138,465 shares. The stock had previously closed at $66.34.

Analysts Set New Price Targets

MO has been the subject of several research analyst reports. Stifel Nicolaus lowered their target price on shares of Altria Group from $72.00 to $68.00 and set a "buy" rating for the company in a report on Friday, January 30th. Citigroup lifted their price target on shares of Altria Group from $57.00 to $65.00 and gave the stock a "neutral" rating in a research note on Monday, February 9th. Argus raised shares of Altria Group to a "hold" rating in a research report on Tuesday, January 13th. UBS Group raised their price objective on Altria Group from $67.00 to $74.00 and gave the stock a "buy" rating in a report on Monday. Finally, Barclays lifted their target price on Altria Group from $57.00 to $63.00 and gave the stock an "underweight" rating in a research report on Monday, February 23rd. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $65.11.

Altria Group Price Performance

The business's 50-day moving average price is $63.80 and its 200-day moving average price is $62.60. The firm has a market capitalization of $113.07 billion, a PE ratio of 16.46, a price-to-earnings-growth ratio of 2.87 and a beta of 0.45.

Altria Group (NYSE:MO - Get Free Report) last released its quarterly earnings results on Thursday, January 29th. The company reported $1.30 EPS for the quarter, missing the consensus estimate of $1.32 by ($0.02). Altria Group had a net margin of 29.84% and a negative return on equity of 287.61%. The business's quarterly revenue was down .5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.30 earnings per share. Equities analysts forecast that Altria Group, Inc. will post 5.32 earnings per share for the current year.

Altria Group Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Wednesday, March 25th will be issued a $1.06 dividend. 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 presently 103.16%.

Insider Buying and Selling at Altria Group

In related news, SVP Charles N. Whitaker sold 27,908 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $67.57, for a total transaction of $1,885,743.56. Following the transaction, the senior vice president owned 180,869 shares of the company's stock, valued at $12,221,318.33. This trade represents a 13.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 0.08% of the company's stock.

Institutional Trading of Altria Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Darwin Wealth Management LLC purchased a new stake in shares of Altria Group during the second quarter worth approximately $27,000. Navalign LLC purchased a new position in Altria Group in the 4th quarter valued at $28,000. Country Trust Bank increased its stake in Altria Group by 400.0% in the 2nd quarter. Country Trust Bank now owns 500 shares of the company's stock valued at $29,000 after buying an additional 400 shares during the period. Creative Capital Management Investments LLC acquired a new position in Altria Group in the 4th quarter valued at $29,000. Finally, Hughes Financial Services LLC raised its position in Altria Group by 62.9% during the 4th quarter. Hughes Financial Services LLC now owns 510 shares of the company's stock worth $29,000 after buying an additional 197 shares during the last quarter. 57.41% of the stock is owned by hedge funds and other institutional investors.

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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