Altria Group (NYSE:MO) Trading Down 5% After Earnings Miss

Shares of Altria Group, Inc. (NYSE:MO) traded down 5% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $47.57 and last traded at $48.01. 5,184,214 shares changed hands during trading, a decline of 51% from the average session volume of 10,641,981 shares. The stock had previously closed at $50.55.

The company reported $1.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.35 by ($0.04). The company had revenue of $6.21 billion for the quarter, compared to analyst estimates of $5.39 billion. Altria Group had a negative return on equity of 222.80% and a net margin of 34.81%. The company’s quarterly revenue was up 14.2% compared to the same quarter last year. During the same period in the prior year, the company earned $1.31 EPS.

Altria Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 10th. Investors of record on Friday, June 14th were paid a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 8.16%. The ex-dividend date of this dividend was Friday, June 14th. Altria Group’s dividend payout ratio (DPR) is presently 82.01%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on MO shares. StockNews.com upgraded shares of Altria Group from a “hold” rating to a “buy” rating in a research note on Friday, June 28th. Argus upgraded shares of Altria Group to a “hold” rating in a research report on Friday, May 31st. Bank of America upped their target price on Altria Group from $47.00 to $48.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 10th. Finally, UBS Group lifted their price target on Altria Group from $36.10 to $36.50 and gave the company a “sell” rating in a research note on Monday, April 8th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $47.10.

Insider Transactions at Altria Group

In related news, VP Charles N. Whitaker sold 22,487 shares of the firm’s stock in a transaction on Thursday, May 2nd. The stock was sold at an average price of $43.95, for a total transaction of $988,303.65. Following the sale, the vice president now owns 173,485 shares of the company’s stock, valued at approximately $7,624,665.75. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.09% of the company’s stock.

Institutional Investors Weigh In On Altria Group

Several hedge funds have recently added to or reduced their stakes in MO. Van ECK Associates Corp increased its position in Altria Group by 120.6% during the 1st quarter. Van ECK Associates Corp now owns 8,762,047 shares of the company’s stock valued at $382,201,000 after purchasing an additional 4,789,788 shares during the period. International Assets Investment Management LLC bought a new position in Altria Group during the fourth quarter worth $525,810,000. United Services Automobile Association lifted its holdings in Altria Group by 103.9% in the fourth quarter. United Services Automobile Association now owns 1,803,226 shares of the company’s stock valued at $72,742,000 after buying an additional 919,058 shares during the period. Victory Capital Management Inc. boosted its position in Altria Group by 24.4% during the fourth quarter. Victory Capital Management Inc. now owns 4,674,441 shares of the company’s stock valued at $188,567,000 after acquiring an additional 915,478 shares during the last quarter. Finally, Bank of Nova Scotia grew its holdings in Altria Group by 131.3% during the 4th quarter. Bank of Nova Scotia now owns 1,418,284 shares of the company’s stock worth $57,211,000 after acquiring an additional 805,051 shares during the period. 57.41% of the stock is currently owned by institutional investors and hedge funds.

Altria Group Trading Down 5.0 %

The stock has a market capitalization of $82.50 billion, a P/E ratio of 10.04, a price-to-earnings-growth ratio of 3.10 and a beta of 0.66. The company has a 50-day moving average price of $46.82 and a two-hundred day moving average price of $43.83.

About Altria Group

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.