Altria Group (NYSE:MO) Stock Price Up 1.5% Following Dividend Announcement

Key Points

• Altria raised its quarterly dividend to $1.11 per share from $1.06, payable October 9 to shareholders of record September 15. The increase brings the annualized dividend to $4.44 and the yield to approximately 6.5%.
• Shares rose 1.5% to $68.68 following the announcement, with trading volume below its average level. Altria has a market capitalization of about $114.7 billion.
• Analysts maintain a consensus “Hold” rating with an average price target of $70.11. Recent earnings slightly missed estimates, although quarterly revenue increased 1.2% year over year.

Altria Group, Inc. (NYSE:MO - Get Free Report) shares shot up 1.5% on Friday following a dividend announcement from the company. The stock traded as high as $68.75 and last traded at $68.68. 5,841,537 shares were traded during mid-day trading, a decline of 37% from the average session volume of 9,327,181 shares. The stock had previously closed at $67.67.The newly announced dividend which will be paid on Friday, October 9th. Shareholders of record on Tuesday, September 15th will be paid a $1.11 dividend. This is an increase from Altria Group's previous quarterly dividend of $1.06. The ex-dividend date is Tuesday, September 15th. This represents a $4.44 annualized dividend and a dividend yield of 6.5%. Altria Group's dividend payout ratio (DPR) is 89.45%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on MO shares. Citigroup lifted their price objective on shares of Altria Group from $65.00 to $70.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. BTIG Research assumed coverage on shares of Altria Group in a research report on Tuesday, July 21st. They set a "neutral" rating for the company. Jefferies Financial Group raised their target price on shares of Altria Group from $50.00 to $60.00 and gave the stock an "underperform" rating in a research note on Wednesday, May 27th. Barclays lowered their target price on shares of Altria Group from $64.00 to $58.00 and set an "underweight" rating on the stock in a report on Tuesday, August 11th. Finally, Stifel Nicolaus boosted their price target on shares of Altria Group from $68.00 to $77.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $70.11.

Altria Group Stock Up 1.5%

The company has a market cap of $114.68 billion, a price-to-earnings ratio of 14.49, a price-to-earnings-growth ratio of 2.45 and a beta of 0.46. The company has a fifty day simple moving average of $70.11 and a two-hundred day simple moving average of $68.95.

Altria Group (NYSE:MO - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.48 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.02). Altria Group had a negative return on equity of 315.29% and a net margin of 33.99%.The business had revenue of $5.36 billion during the quarter, compared to analysts' expectations of $5.35 billion. During the same quarter in the prior year, the firm earned $1.44 earnings per share. Altria Group's quarterly revenue was up 1.2% on a year-over-year basis. Altria Group has set its FY 2026 guidance at 5.610-5.720 EPS. On average, research analysts predict that Altria Group, Inc. will post 5.67 EPS for the current year.

Altria Group News Roundup

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

• Positive Sentiment: Dividend increased 4.7%: Altria raised its quarterly dividend to $1.11 per share from $1.06. The dividend is payable October 9 to shareholders of record September 15, supporting the investment case for income-focused holders. Altria Increases Quarterly Dividend to $1.11 Per Share
• Positive Sentiment: Board addition may support strategic execution: Altria elected Steve Presley to its board of directors. The appointment could add relevant consumer-products and business-management experience as the company manages its traditional tobacco portfolio and develops smoke-free products. Altria Announces Election of Steve Presley to Altria’s Board of Directors
• Neutral Sentiment: Valuation appears reasonable after a strong run: Recent commentary describes Altria as reasonably priced despite an approximately 95% five-year gain. This may limit near-term valuation concerns, but it also suggests investors will look for continued earnings and dividend growth to drive further upside. Altria Stock Looks Reasonably Priced
• Neutral Sentiment: Smoke-free transition remains central: Analysis comparing Altria with Philip Morris highlights both companies’ efforts to expand reduced-risk and smoke-free products. Altria’s progress in this area could influence its long-term growth as cigarette volumes decline. Altria vs. Philip Morris

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of MO. Cornerstone Planning Group LLC boosted its position in Altria Group by 5.8% during the first quarter. Cornerstone Planning Group LLC now owns 2,619 shares of the company's stock worth $191,000 after acquiring an additional 143 shares during the last quarter. Angeles Wealth Management LLC raised its holdings in Altria Group by 1.3% in the 2nd quarter. Angeles Wealth Management LLC now owns 11,239 shares of the company's stock valued at $821,000 after acquiring an additional 146 shares during the last quarter. Bernardo Wealth Planning LLC lifted its stake in shares of Altria Group by 4.6% during the 2nd quarter. Bernardo Wealth Planning LLC now owns 3,379 shares of the company's stock worth $243,000 after purchasing an additional 149 shares during the period. Old Peak Finance LLC lifted its stake in shares of Altria Group by 1.3% during the 2nd quarter. Old Peak Finance LLC now owns 11,920 shares of the company's stock worth $858,000 after purchasing an additional 151 shares during the period. Finally, Joel Isaacson & Co. LLC boosted its holdings in shares of Altria Group by 0.7% during the second quarter. Joel Isaacson & Co. LLC now owns 23,324 shares of the company's stock worth $1,678,000 after purchasing an additional 152 shares during the last quarter. 57.41% of the stock is owned by hedge funds and other institutional investors.

Altria Group Company Profile

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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