Altria Group (NYSE:MO) Trading Down 1% - Time to Sell?

Key Points

• Altria shares fell 1% to $68.18 in midday trading, with volume about 16% above average. Analysts’ consensus rating remains “Hold,” with an average price target of $70.11.
• The company slightly missed quarterly EPS estimates, reporting $1.48 versus the $1.50 consensus, while revenue rose 1.2% year over year to $5.36 billion. Full-year EPS guidance is $5.61–$5.72.
• Altria increased its quarterly dividend to $1.11 per share, equivalent to a 6.5% yield and an $89.45% payout ratio; shares must be held by September 15 to receive the October 9 payment.

Altria Group, Inc. (NYSE:MO - Get Free Report)'s share price fell 1% during trading on Tuesday . The stock traded as low as $67.72 and last traded at $68.18. Approximately 10,733,784 shares were traded during mid-day trading, an increase of 16% from the average session volume of 9,286,592 shares. The stock had previously closed at $68.88.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Jefferies Financial Group lifted their price target on Altria Group from $50.00 to $60.00 and gave the company an "underperform" rating in a report on Wednesday, May 27th. Weiss Ratings restated a "buy (b)" rating on shares of Altria Group in a research report on Tuesday, July 14th. Barclays lowered their target price on Altria Group from $64.00 to $58.00 and set an "underweight" rating on the stock in a research note on Tuesday, August 11th. Wall Street Zen downgraded Altria Group from a "buy" rating to a "hold" rating in a report on Sunday, June 21st. Finally, BTIG Research assumed coverage on shares of Altria Group in a research report on Tuesday, July 21st. They issued a "neutral" rating for the company. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $70.11.

Altria Group Stock Down 1.0%

The firm has a market capitalization of $113.84 billion, a price-to-earnings ratio of 14.38, a P/E/G ratio of 2.44 and a beta of 0.45. The stock's 50 day moving average price is $69.71 and its two-hundred day moving average price is $69.10.

Altria Group (NYSE:MO - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.50 by ($0.02). Altria Group had a net margin of 33.99% and a negative return on equity of 315.29%. The firm had revenue of $5.36 billion for the quarter, compared to analyst estimates of $5.35 billion. During the same period in the previous year, the business posted $1.44 EPS. Altria Group's revenue for the quarter 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, equities analysts expect that Altria Group, Inc. will post 5.67 EPS for the current fiscal year.

Altria Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Tuesday, September 15th will be issued a dividend of $1.11 per share. The ex-dividend date is Tuesday, September 15th. This represents a $4.44 annualized dividend and a dividend yield of 6.5%. This is a positive change from Altria Group's previous quarterly dividend of $1.06. Altria Group's dividend payout ratio is presently 89.45%.

Hedge Funds Weigh In On Altria Group

Hedge funds have recently added to or reduced their stakes in the company. Cornerstone Planning Group LLC increased its stake in shares of Altria Group by 5.8% during the 1st quarter. Cornerstone Planning Group LLC now owns 2,619 shares of the company's stock worth $191,000 after purchasing an additional 143 shares during the last quarter. Angeles Wealth Management LLC lifted its stake in shares of 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 purchasing an additional 146 shares during the last quarter. Bernardo Wealth Planning LLC boosted its holdings in Altria Group by 4.6% in the second quarter. Bernardo Wealth Planning LLC now owns 3,379 shares of the company's stock worth $243,000 after purchasing an additional 149 shares in the last quarter. Old Peak Finance LLC increased its position in Altria Group by 1.3% during the second quarter. Old Peak Finance LLC now owns 11,920 shares of the company's stock worth $858,000 after buying an additional 151 shares during the last quarter. Finally, Joel Isaacson & Co. LLC increased its position in 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 buying an additional 152 shares during the last quarter. Institutional investors and hedge funds own 57.41% of the company's stock.

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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