Altria Group (NYSE:MO) Trading Down 2.2% - Here's Why

Key Points

• Altria Group shares fell 2.2% in Tuesday trading, with the stock last changing hands at $73.05 after reaching an intraday low of $72.92. Trading volume was below average, with about 6.1 million shares exchanged.
• Analysts remain mixed on the stock: UBS raised its price target to $79 and kept a buy rating, while the overall consensus from MarketBeat is still Hold with an average target price of $70.78.
• Altria recently reported strong quarterly results, beating earnings and revenue estimates, and continues to offer a 5.8% dividend yield with an annualized payout of $4.24 per share.

Altria Group, Inc. (NYSE:MO - Get Free Report)'s share price dropped 2.2% during mid-day trading on Tuesday . The stock traded as low as $72.92 and last traded at $73.0520. 6,113,719 shares changed hands during trading, a decline of 34% from the average daily volume of 9,291,281 shares. The stock had previously closed at $74.66.

Analyst Ratings Changes

Several research firms have commented on MO. UBS Group upped their price target on shares of Altria Group from $76.00 to $79.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. Morgan Stanley set a $71.00 price objective on Altria Group in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft boosted their price objective on Altria Group from $60.00 to $66.00 and gave the company a "hold" rating in a report on Monday, May 4th. Jefferies Financial Group upped their target price on Altria Group from $50.00 to $60.00 and gave the stock an "underperform" rating in a research note on Wednesday, May 27th. Finally, Barclays raised their target price on Altria Group from $63.00 to $64.00 and gave the stock an "underweight" rating in a report on Friday, May 15th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $70.78.

Altria Group Stock Performance

The firm has a market capitalization of $121.99 billion, a PE ratio of 15.28, a price-to-earnings-growth ratio of 2.68 and a beta of 0.45. The firm's 50 day moving average price is $71.84 and its 200-day moving average price is $67.39.

Altria Group (NYSE:MO - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $1.32 earnings per share for the quarter, beating the consensus estimate of $1.25 by $0.07. The firm had revenue of $4.76 billion during the quarter, compared to analyst estimates of $4.58 billion. Altria Group had a negative return on equity of 298.69% and a net margin of 34.34%.Altria Group's revenue for the quarter was up 5.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.23 EPS. Altria Group has set its FY 2026 guidance at 5.560-5.72 EPS. On average, equities research analysts expect that Altria Group, Inc. will post 5.7 earnings per share for the current fiscal year.

Altria Group Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Monday, June 15th were given a $1.06 dividend. The ex-dividend date was Monday, June 15th. This represents a $4.24 dividend on an annualized basis and a dividend yield of 5.8%. Altria Group's payout ratio is 88.70%.

Insider Activity at Altria Group

In other news, Director Ellen R. Strahlman sold 2,000 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 25,102 shares of the company's stock, valued at $1,821,401.12. This represents a 7.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Ennis Debra J. Kelly sold 5,790 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $72.25, for a total value of $418,327.50. Following the transaction, the director owned 73,809 shares in the company, valued at $5,332,700.25. This trade represents a 7.27% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.10% of the company's stock.

Hedge Funds Weigh In On Altria Group

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MO. Regent Peak Wealth Advisors LLC grew its position in shares of Altria Group by 6.8% in the second quarter. Regent Peak Wealth Advisors LLC now owns 3,905 shares of the company's stock valued at $281,000 after purchasing an additional 248 shares during the period. Annex Advisory Services LLC raised its position in shares of Altria Group by 82.8% during the 2nd quarter. Annex Advisory Services LLC now owns 99,819 shares of the company's stock worth $7,182,000 after purchasing an additional 45,211 shares during the last quarter. Whitener Capital Management Inc. raised its position in shares of Altria Group by 1.6% during the 2nd quarter. Whitener Capital Management Inc. now owns 39,358 shares of the company's stock worth $2,832,000 after purchasing an additional 626 shares during the last quarter. Heck Capital Advisors LLC acquired a new position in shares of Altria Group during the 2nd quarter worth about $201,000. Finally, Tema ETFs LLC lifted its stake in Altria Group by 10.7% in the 2nd quarter. Tema ETFs LLC now owns 30,004 shares of the company's stock valued at $2,159,000 after buying an additional 2,900 shares in the last quarter. 57.41% of the stock is owned by hedge funds and other institutional investors.

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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