Altria Group (NYSE:MO) Trading 6.5% Higher on Better-Than-Expected Earnings

Shares of Altria Group, Inc. (NYSE:MO) traded up 6.5% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $54.06 and last traded at $53.77. 7,747,256 shares were traded during mid-day trading, a decline of 21% from the average session volume of 9,817,551 shares. The stock had previously closed at $50.50.

The company reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.02. Altria Group had a net margin of 42.25% and a negative return on equity of 232.55%. The firm had revenue of $6.26 billion during the quarter, compared to the consensus estimate of $5.33 billion. During the same period last year, the firm posted $1.28 EPS. The firm’s revenue for the quarter was up 18.6% on a year-over-year basis.

Altria Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 10th. Stockholders of record on Monday, September 16th were issued a dividend of $1.02 per share. The ex-dividend date was Monday, September 16th. This is an increase from Altria Group’s previous quarterly dividend of $0.98. This represents a $4.08 dividend on an annualized basis and a dividend yield of 7.57%. Altria Group’s payout ratio is 70.34%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on MO shares. StockNews.com downgraded shares of Altria Group from a “buy” rating to a “hold” rating in a report on Tuesday, October 8th. Stifel Nicolaus lifted their price target on shares of Altria Group from $54.00 to $60.00 and gave the stock a “buy” rating in a report on Friday. Barclays lifted their price target on shares of Altria Group from $43.00 to $45.00 and gave the stock an “underweight” rating in a report on Monday, September 9th. Bank of America lowered their price target on shares of Altria Group from $57.00 to $53.00 and set a “neutral” rating for the company in a report on Tuesday, October 15th. Finally, Citigroup lifted their price target on shares of Altria Group from $44.50 to $48.00 and gave the stock a “neutral” rating in a report on Tuesday, October 8th. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $51.17.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Ted Buchan & Co lifted its position in Altria Group by 4.2% during the third quarter. Ted Buchan & Co now owns 12,202 shares of the company’s stock valued at $623,000 after buying an additional 492 shares in the last quarter. RKL Wealth Management LLC acquired a new position in Altria Group during the third quarter valued at approximately $205,000. Atria Investments Inc lifted its position in Altria Group by 19.2% during the third quarter. Atria Investments Inc now owns 111,281 shares of the company’s stock valued at $5,680,000 after buying an additional 17,887 shares in the last quarter. Resolute Advisors LLC lifted its position in shares of Altria Group by 2.2% during the third quarter. Resolute Advisors LLC now owns 11,772 shares of the company’s stock worth $613,000 after purchasing an additional 250 shares in the last quarter. Finally, Assetmark Inc. lifted its position in shares of Altria Group by 3.8% during the third quarter. Assetmark Inc. now owns 2,154,251 shares of the company’s stock worth $109,953,000 after purchasing an additional 78,002 shares in the last quarter. 57.41% of the stock is owned by institutional investors and hedge funds.

Altria Group Price Performance

The business’s 50-day moving average price is $51.42 and its 200 day moving average price is $48.38. The firm has a market capitalization of $91.91 billion, a price-to-earnings ratio of 9.29, a PEG ratio of 2.92 and a beta of 0.65.

Altria Group Company Profile

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.