Shares of Altria Group, Inc. (NYSE: MO) experienced a notable increase of 1.6% in mid-day trading on Thursday, reaching as high as $67.46 before settling at $66.98. Approximately 9,403,891 shares changed hands, reflecting a 17% decline from the average session volume of 11,277,672 shares. The stock’s previous closing price was $65.92.
Analysts have recently indicated a positive outlook for Altria Group. Citigroup raised its price target from $57.00 to $65.00, maintaining a “neutral” rating, while UBS Group increased its target from $63.00 to $67.00 with a “buy” recommendation. Additionally, Argus upgraded its rating to “hold,” and Stifel Nicolaus adjusted its target from $72.00 to $68.00, also issuing a “buy” rating. Currently, five analysts rate the stock as a buy, five as hold, and two as sell, leading to a consensus rating of “hold” with an average price target of $63.67, according to MarketBeat.
Quarterly Performance and Dividend Updates
Altria Group reported its quarterly earnings on January 29, 2024, disclosing earnings per share (EPS) of $1.30, which fell short of the consensus estimate of $1.32 by $0.02. The company achieved revenue of $5.08 billion, surpassing the expected $5.02 billion, although this figure represents a 0.5% decline compared to the previous year. The firm noted a negative return on equity of 287.61% and a net margin of 29.84%.
In terms of shareholder returns, Altria Group declared a quarterly dividend of $1.06, which was paid on January 9. This translates to an annualized dividend of $4.24 with a yield of 6.3%. The ex-dividend date was December 26, 2023. The company’s dividend payout ratio currently stands at 103.16%.
Moreover, the Board of Directors approved a stock repurchase program, allowing for the buyback of up to $2 billion in shares, equating to approximately 1.9% of its shares outstanding. Such repurchase initiatives typically signal confidence from the company’s leadership regarding the stock’s valuation.
Institutional Investment Trends
Interest from institutional investors has been significant. CWA Asset Management Group LLC increased its stake by 8.6% in the third quarter, owning 335,418 shares valued at $22.16 million. Sumitomo Mitsui Trust Group Inc. raised its holdings by 1.3%, bringing its total to 3,522,209 shares valued at $232.68 million. Additionally, Vanguard Group Inc. reported a 1.0% increase in its stake, now owning 159,717,148 shares worth approximately $9.36 billion.
About 57.41% of Altria Group’s stock is currently held by hedge funds and other institutional investors, indicating robust institutional confidence in the company’s prospects.
Altria Group, based in Richmond, Virginia, remains a leading player in the tobacco industry, focusing on the manufacturing and marketing of tobacco products across the United States. As it navigates a complex regulatory environment and shifting consumer preferences, the company’s performance continues to attract attention from analysts and investors alike.
