Altria Group, Inc. $MO Stock: Rakuten Investment Management Inc. Grows Holdings

Key Points

• Rakuten Investment Management increased its Altria stake by 9.7% in the third quarter, adding 26,500 shares to hold 299,710 shares valued at about $20.6 million. Institutional investors and hedge funds own 57.41% of the stock.
• Altria slightly beat quarterly earnings and revenue estimates, reporting EPS of $1.52 and revenue of $5.44 billion; revenue rose 1% year over year. Its quarterly dividend increased to $1.11 per share, equivalent to a 5.7% annualized yield.
• Analysts’ consensus rating is Hold, with an average price target of $71.67. Recent target increases included UBS to $83 (Buy) and Morgan Stanley to $77 (Equal Weight).

Rakuten Investment Management Inc. grew its position in Altria Group, Inc. (NYSE:MO - Free Report) by 9.7% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 299,710 shares of the company's stock after purchasing an additional 26,500 shares during the quarter. Rakuten Investment Management Inc.'s holdings in Altria Group were worth $20,596,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in MO. Procyon Advisors LLC increased its position in shares of Altria Group by 59.3% during the first quarter. Procyon Advisors LLC now owns 38,926 shares of the company's stock worth $2,569,000 after buying an additional 14,490 shares during the period. Callan Family Office LLC acquired a new stake in Altria Group during the second quarter worth approximately $2,911,000. Janney Montgomery Scott LLC increased its stake in shares of Altria Group by 26.9% in the 2nd quarter. Janney Montgomery Scott LLC now owns 1,164,691 shares of the company's stock valued at $83,800,000 after acquiring an additional 246,702 shares in the last quarter. Waverly Advisors LLC raised its holdings in shares of Altria Group by 21.6% during the first quarter. Waverly Advisors LLC now owns 95,137 shares of the company's stock valued at $6,278,000 after purchasing an additional 16,877 shares during the period. Finally, Principal Financial Group Inc. raised its position in shares of Altria Group by 2.1% during the first quarter. Principal Financial Group Inc. now owns 1,952,375 shares of the company's stock worth $128,837,000 after purchasing an additional 40,974 shares during the period. 57.41% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Morgan Stanley increased their price objective on Altria Group from $71.00 to $77.00 and gave the stock an "equal weight" rating in a research note on Friday, October 30th. Barclays lifted their target price on Altria Group from $58.00 to $60.00 and gave the company an "underweight" rating in a research report on Monday. Weiss Ratings reiterated a "buy (b)" rating on shares of Altria Group in a report on Monday, October 12th. Citigroup boosted their price target on shares of Altria Group from $70.00 to $72.00 and gave the stock a "neutral" rating in a report on Friday, October 30th. Finally, UBS Group raised their target price on Altria Group from $79.00 to $83.00 and gave the company a "buy" rating in a research report on Friday, October 30th. Five analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $71.67.

Insiders Place Their Bets

In other news, Director Kathryn McQuade purchased 1,500 shares of the company's stock in a transaction dated Wednesday, September 9th. The shares were purchased at an average cost of $67.62 per share, for a total transaction of $101,430.00. Following the purchase, the director directly owned 114,929 shares in the company, valued at approximately $7,771,498.98. This represents a 1.32% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.10% of the company's stock.

Trending Headlines about Altria Group

Here are the key news stories impacting Altria Group this week:

• Positive Sentiment: Altria’s October advance was supported by solid earnings, with price increases helping offset a smaller-than-expected decline in cigarette volumes. The company is also continuing share repurchases and dividend increases, which may appeal to income-focused investors. Why Altria Group Shares Bumped 15.9% Higher In October
• Positive Sentiment: Barclays raised its price target on MO, providing a supportive analyst signal, though the report headline does not specify the new target or its rationale. Altria Group Stock Gets Price Target Increase from Barclays
• Neutral Sentiment: Altria filed a universal shelf registration that gives it flexibility to issue debt, warrants or other securities for purposes such as refinancing or general corporate needs. It does not mean an offering is imminent, but future issuance could affect the company’s financing costs or shareholder dilution depending on the securities issued. Why Did Altria Group File A Universal Shelf Registration?
• Negative Sentiment: The 10-year Treasury yield near 4.91% offers investors a comparatively low-risk income alternative, potentially making high-yield dividend stocks like Altria less attractive at the margin. The 10-Year Treasury Yields 4.91%. These 4 Dividend Stocks Pay More

Altria Group Stock Up 1.4%

Shares of NYSE MO opened at $78.02 on Thursday. The firm's fifty day moving average is $71.04 and its 200 day moving average is $68.99. The company has a market cap of $129.78 billion, a price-to-earnings ratio of 16.12, a PEG ratio of 2.61 and a beta of 0.43. Altria Group, Inc. has a 52 week low of $54.70 and a 52 week high of $79.81.

Altria Group (NYSE:MO - Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.01. The company had revenue of $5.44 billion for the quarter, compared to analysts' expectations of $5.31 billion. Altria Group had a net margin of 34.51% and a negative return on equity of 330.66%. Altria Group's quarterly revenue was up 1.0% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.45 earnings per share. Equities research analysts anticipate that Altria Group, Inc. will post 5.70 earnings per share for the current year.

Altria Group Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Tuesday, September 15th were paid a dividend of $1.11 per share. The ex-dividend date was Tuesday, September 15th. This represents a $4.44 dividend on an annualized basis and a yield of 5.7%. This is a boost from Altria Group's previous quarterly dividend of $1.06. Altria Group's dividend payout ratio (DPR) is presently 91.74%.

Altria Group Profile

Altria Group, Inc is a U.S.-based consumer products company focused primarily on tobacco, nicotine and related products. Through its operating companies, Altria sells cigarettes, cigars, pipe tobacco, oral tobacco and nicotine products, and electronic vapor products.

Altria's principal cigarette business is Philip Morris USA, whose portfolio includes Marlboro, Parliament and Virginia Slims. Its other major brands include Copenhagen and Skoal moist smokeless tobacco, Black & Mild cigars, on! nicotine pouches and NJOY electronic cigarettes.

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