British American Tobacco Target of Unusually Large Options Trading (NYSE:BTI)

Key Points

• Traders bought 40,260 call options on British American Tobacco, a 327% surge versus the stock's typical call volume of 9,420, indicating unusually heavy bullish options activity.
• JPMorgan Chase notably increased its position by 1,837,106 shares (a 201.6% rise) and other funds also boosted stakes, with institutional investors owning about 16.16% of the company.
• The company declared a quarterly dividend of $0.8349 (annualized $3.34), implying a 5.7% yield; the ex-dividend date is Dec. 29 and the payment date is Feb. 8.

British American Tobacco p.l.c. (NYSE:BTI - Get Free Report) was the target of some unusual options trading on Thursday. Traders acquired 40,260 call options on the stock. This is an increase of 327% compared to the typical volume of 9,420 call options.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC raised its position in shares of British American Tobacco by 35.2% in the 1st quarter. AQR Capital Management LLC now owns 27,914 shares of the company's stock valued at $1,155,000 after purchasing an additional 7,270 shares in the last quarter. Sivia Capital Partners LLC boosted its stake in British American Tobacco by 42.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 8,455 shares of the company's stock valued at $400,000 after acquiring an additional 2,521 shares during the last quarter. JPMorgan Chase & Co. grew its holdings in British American Tobacco by 201.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,748,324 shares of the company's stock worth $130,078,000 after acquiring an additional 1,837,106 shares in the last quarter. MAI Capital Management raised its stake in shares of British American Tobacco by 92.3% in the 2nd quarter. MAI Capital Management now owns 5,370 shares of the company's stock valued at $254,000 after purchasing an additional 2,578 shares in the last quarter. Finally, AlphaCore Capital LLC bought a new position in shares of British American Tobacco during the second quarter worth about $76,000. 16.16% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have commented on BTI. Citigroup reiterated a "buy" rating on shares of British American Tobacco in a research report on Friday, November 28th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating on shares of British American Tobacco in a research report on Friday, November 28th. Kepler Capital Markets began coverage on British American Tobacco in a report on Friday, December 12th. They issued a "buy" rating on the stock. Weiss Ratings raised British American Tobacco from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, February 17th. Finally, Morgan Stanley reaffirmed an "underweight" rating on shares of British American Tobacco in a report on Wednesday, December 10th. Eight analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $51.00.

British American Tobacco Stock Down 0.4%

NYSE:BTI traded down $0.22 during mid-day trading on Thursday, reaching $58.23. The company's stock had a trading volume of 4,066,609 shares, compared to its average volume of 5,436,456. The company has a quick ratio of 0.57, a current ratio of 0.87 and a debt-to-equity ratio of 0.66. The company's fifty day simple moving average is $59.93 and its two-hundred day simple moving average is $56.56. British American Tobacco has a twelve month low of $37.96 and a twelve month high of $63.22.

British American Tobacco Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, February 8th. Stockholders of record on Tuesday, December 29th will be issued a $0.8349 dividend. This represents a $3.34 dividend on an annualized basis and a dividend yield of 5.7%. The ex-dividend date is Tuesday, December 29th.

British American Tobacco Company Profile

British American Tobacco plc (BTI) is a multinational tobacco manufacturer and nicotine products company headquartered in London. Founded in 1902 as a joint venture to commercialize tobacco products outside the United States, the company has grown into one of the world's largest tobacco firms with a long history in manufacturing and global distribution of combustible tobacco products.

BAT's core business remains the manufacture and sale of cigarettes and other tobacco products under a portfolio of well-known consumer brands, including Dunhill, Lucky Strike, Pall Mall, Kent and Rothmans.

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