Altria Group (NYSE:MO) Stock Price Down 1.8% - Should You Sell?

Key Points

• Altria shares fell 1.8% to $65.64 on Tuesday, with trading volume about 12% below the average.
• Analysts are mixed—five Buy, four Hold and two Sell—giving a MarketBeat consensus of 'Hold' and an average price target of $65.88, essentially in line with the current share price.
• The company pays a quarterly dividend of $1.06 (annualized yield of 6.5%) but carries a payout ratio of 103.16%; its most recent quarter reported EPS of $1.30, missing estimates by $0.02 while revenue was down 0.5% year-over-year.

Altria Group, Inc. (NYSE:MO - Get Free Report) shares were down 1.8% on Tuesday . The stock traded as low as $64.90 and last traded at $65.64. Approximately 8,937,154 shares changed hands during trading, a decline of 12% from the average daily volume of 10,136,347 shares. The stock had previously closed at $66.81.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on MO shares. Bank of America upped their target price on shares of Altria Group from $72.00 to $73.00 and gave the stock a "buy" rating in a research report on Friday. Jefferies Financial Group upped their price target on shares of Altria Group from $47.00 to $50.00 and gave the company an "underperform" rating in a report on Wednesday, March 4th. 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 report on Monday, February 9th. UBS Group upped their price target on shares of Altria Group from $67.00 to $74.00 and gave the company a "buy" rating in a report on Monday, March 9th. Finally, 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 report on Monday, February 23rd. Five research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Altria Group presently has a consensus rating of "Hold" and an average price target of $65.88.

Altria Group Stock Down 1.8%

The company has a market cap of $109.70 billion, a PE ratio of 15.97, a P/E/G ratio of 2.88 and a beta of 0.41. The firm's fifty day simple moving average is $66.60 and its 200-day simple moving average is $62.60.

Altria Group (NYSE:MO - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The company reported $1.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.32 by ($0.02). The business had revenue of $5.08 billion during the quarter, compared to analysts' expectations 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 revenue for the quarter was down .5% on a year-over-year basis. During the same period last year, the company earned $1.30 EPS. On average, analysts predict that Altria Group, Inc. will post 5.32 earnings per share for the current year.

Altria Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Wednesday, March 25th will be paid a dividend of $1.06 per share. The ex-dividend date of this dividend is Wednesday, March 25th. This represents a $4.24 annualized dividend and a dividend yield of 6.5%. Altria Group's dividend payout ratio is presently 103.16%.

Insider Activity

In related 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 transaction of $1,885,743.56. Following the transaction, the senior vice president 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 the SEC website. Insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Altria Group

Several institutional investors and hedge funds have recently modified their holdings of the company. Rockefeller Capital Management L.P. lifted its stake in shares of Altria Group by 8.6% during the fourth quarter. Rockefeller Capital Management L.P. now owns 488,706 shares of the company's stock valued at $28,198,000 after buying an additional 38,878 shares during the period. Lane Brothers & Co. Inc. purchased a new position in shares of Altria Group during the fourth quarter valued at approximately $251,000. Fund Advisors of America Inc FL purchased a new position in shares of Altria Group during the fourth quarter valued at approximately $715,000. Winthrop Partners WNY LLC purchased a new position in shares of Altria Group during the fourth quarter valued at approximately $334,000. Finally, Nalls Sherbakoff Group LLC purchased a new position in shares of Altria Group during the fourth quarter valued at approximately $48,000. Hedge funds and other institutional investors 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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