Investors Buy Large Volume of Call Options on Altria Group (NYSE:MO)

Key Points

• Altria Group experienced a striking **4,332% increase** in call options trading, with **1,274,336 call options** purchased on Friday compared to an average of **28,752**.
• The company's recent quarterly earnings surpassed expectations, reporting **$1.44 EPS** versus an estimated **$1.37**, alongside **revenue of $5.29 billion**, which also exceeded projections.
• Altria has declared a **quarterly dividend** of **$1.06 per share**, reflecting an increase from the previous **$1.02**, and representing a **6.4% yield** for shareholders.

Altria Group, Inc. (NYSE:MO - Get Free Report) saw unusually large options trading on Friday. Traders bought 1,274,336 call options on the company. This represents an increase of 4,332% compared to the average volume of 28,752 call options.

Altria Group Trading Up 0.4%

Shares of NYSE:MO traded up $0.28 on Friday, reaching $66.64. The company had a trading volume of 7,957,556 shares, compared to its average volume of 8,975,363. Altria Group has a 52-week low of $48.86 and a 52-week high of $68.60. The firm's 50 day simple moving average is $63.14 and its 200-day simple moving average is $60.02. The firm has a market capitalization of $111.95 billion, a PE ratio of 12.89, a PEG ratio of 3.56 and a beta of 0.59.

Altria Group (NYSE:MO - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $1.44 EPS for the quarter, beating analysts' consensus estimates of $1.37 by $0.07. Altria Group had a negative return on equity of 295.26% and a net margin of 37.24%.The company had revenue of $5.29 billion during the quarter, compared to analysts' expectations of $5.21 billion. During the same period last year, the business posted $1.31 earnings per share. The firm's revenue was up .2% compared to the same quarter last year. Altria Group has set its FY 2025 guidance at 5.350-5.450 EPS. As a group, equities research analysts predict that Altria Group will post 5.32 earnings per share for the current year.

Altria Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Monday, September 15th will be given a dividend of $1.06 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $4.24 dividend on an annualized basis and a yield of 6.4%. This is an increase from Altria Group's previous quarterly dividend of $1.02. Altria Group's payout ratio is presently 78.92%.

Hedge Funds Weigh In On Altria Group

Several institutional investors and hedge funds have recently modified their holdings of MO. Brighton Jones LLC lifted its holdings in shares of Altria Group by 64.7% in the 4th quarter. Brighton Jones LLC now owns 17,702 shares of the company's stock valued at $926,000 after buying an additional 6,954 shares during the period. Janus Henderson Group PLC increased its stake in Altria Group by 5.4% during the 4th quarter. Janus Henderson Group PLC now owns 76,099 shares of the company's stock worth $3,982,000 after buying an additional 3,883 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Altria Group by 5.8% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 514,825 shares of the company's stock worth $26,914,000 after buying an additional 28,128 shares in the last quarter. Pathstone Holdings LLC grew its position in shares of Altria Group by 8.1% in the fourth quarter. Pathstone Holdings LLC now owns 175,128 shares of the company's stock valued at $9,177,000 after purchasing an additional 13,067 shares in the last quarter. Finally, Quantinno Capital Management LP grew its position in shares of Altria Group by 33.6% in the fourth quarter. Quantinno Capital Management LP now owns 150,445 shares of the company's stock valued at $7,867,000 after purchasing an additional 37,858 shares in the last quarter. Institutional investors and hedge funds own 57.41% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on MO shares. Barclays upped their price objective on Altria Group from $49.00 to $57.00 and gave the company an "underweight" rating in a research report on Wednesday, August 6th. Morgan Stanley upped their price objective on Altria Group from $57.00 to $62.00 and gave the company an "equal weight" rating in a research report on Thursday, July 31st. Needham & Company LLC upgraded Altria Group to a "hold" rating in a research report on Thursday, May 22nd. Bank of America upped their price objective on Altria Group from $64.00 to $72.00 and gave the company a "buy" rating in a research report on Friday, August 22nd. Finally, Jefferies Financial Group assumed coverage on Altria Group in a report on Wednesday, July 9th. They issued an "underperform" rating and a $50.00 price target on the stock. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Altria Group currently has a consensus rating of "Hold" and a consensus target price of $60.88.

About Altria Group

Altria Group, Inc, through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company offers cigarettes primarily under the Marlboro brand; large cigars and pipe tobacco under the Black & Mild brand; moist smokeless tobacco and snus products under the Copenhagen, Skoal, Red Seal, and Husky brands; oral nicotine pouches under the on! brand; and e-vapor products under the NJOY ACE brand.

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