Altria Group (NYSE:MO) Trading Down 1.3% - Here's Why

Key Points

• Altria shares fell 1.3% to $68.62 in mid-day trading, with trading volume 24% below the average. Analysts have a consensus “Hold” rating and an average price target of $70.11.
• The company’s latest quarterly results slightly missed expectations, reporting $1.48 in EPS versus the $1.50 consensus, while revenue rose 1.2% year over year to $5.36 billion.
• Altria increased its quarterly dividend to $1.11 per share, equating to a 6.5% yield and a $4.44 annualized payout. A company director also purchased 1,500 shares at an average price of $67.62.

Altria Group, Inc. (NYSE:MO - Get Free Report)'s share price dropped 1.3% during mid-day trading on Monday . The company traded as low as $68.45 and last traded at $68.62. 7,023,648 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 9,265,537 shares. The stock had previously closed at $69.52.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on MO. BTIG Research started coverage on Altria Group in a report on Tuesday, July 21st. They set a "neutral" rating for the company. Wall Street Zen cut Altria Group from a "buy" rating to a "hold" rating in a report on Sunday, June 21st. Jefferies Financial Group boosted their price target on Altria Group from $50.00 to $60.00 and gave the company an "underperform" rating in a research report on Wednesday, May 27th. Barclays dropped their price target on Altria Group from $64.00 to $58.00 and set an "underweight" rating for the company in a research note on Tuesday, August 11th. Finally, Weiss Ratings restated a "buy (b)" rating on shares of Altria Group in a report on Tuesday, July 14th. 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. According to data from MarketBeat.com, Altria Group has a consensus rating of "Hold" and an average price target of $70.11.

Altria Group Trading Down 1.3%

The stock has a market cap of $114.58 billion, a PE ratio of 14.48, a P/E/G ratio of 2.47 and a beta of 0.45. The company's 50 day moving average is $69.18 and its 200-day moving average is $69.14.

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

Altria Group Increases Dividend

The business also recently announced 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. This represents a $4.44 annualized dividend and a dividend yield of 6.5%. This is a boost from Altria Group's previous quarterly dividend of $1.06. The ex-dividend date of this dividend is Tuesday, September 15th. Altria Group's dividend payout ratio is currently 93.67%.

Insiders Place Their Bets

In other news, Director Kathryn McQuade acquired 1,500 shares of the company's stock in a transaction that occurred on Wednesday, September 9th. The shares were acquired at an average price of $67.62 per share, with a total value of $101,430.00. Following the acquisition, the director directly owned 114,929 shares in the company, valued at approximately $7,771,498.98. The trade was a 1.32% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Altria Group

Several large investors have recently bought and sold shares of the stock. Security National Bank of SO Dak acquired a new stake in shares of Altria Group in the second quarter valued at $128,000. Anchor Investment Management LLC grew its holdings in Altria Group by 4.4% during the second quarter. Anchor Investment Management LLC now owns 11,684 shares of the company's stock worth $841,000 after acquiring an additional 496 shares during the period. Talon Private Wealth LLC acquired a new position in Altria Group during the second quarter worth about $223,000. Bouchey Financial Group Ltd. raised its position in Altria Group by 12.9% in the second quarter. Bouchey Financial Group Ltd. now owns 9,411 shares of the company's stock worth $682,000 after acquiring an additional 1,072 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in Altria Group by 29.7% in the second quarter. The Manufacturers Life Insurance Company now owns 1,379,243 shares of the company's stock worth $99,237,000 after acquiring an additional 315,892 shares in 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 tobacco and nicotine company headquartered in Richmond, Virginia. Through its operating companies, Altria develops, manufactures and markets cigarettes, cigars, oral tobacco products, nicotine pouches and electronic vaping products, with its business focused primarily on the United States.

Altria's smokeable products portfolio includes Marlboro cigarettes, which are manufactured and marketed in the U.S. by Philip Morris USA, as well as Black & Mild cigars through John Middleton.

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