Altria Group (NYSE:MO) Reaches New 1-Year High – Time to Buy?

Altria Group, Inc. (NYSE:MO) reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $68.63 and last traded at $68.4790, with a volume of 1144406 shares traded. The stock had previously closed at $67.57.

Analyst Ratings Changes

Several equities research analysts recently weighed in on MO shares. Barclays increased their target price on shares of Altria Group from $57.00 to $63.00 and gave the company an “underweight” rating in a research note on Monday. Citigroup raised their price objective on Altria Group from $57.00 to $65.00 and gave the stock a “neutral” rating in a research report on Monday, February 9th. UBS Group lifted their price objective on Altria Group from $63.00 to $67.00 and gave the stock a “buy” rating in a report on Monday, January 26th. Argus upgraded Altria Group to a “hold” rating in a research report on Tuesday, January 13th. Finally, Stifel Nicolaus reduced their target price on Altria Group from $72.00 to $68.00 and set a “buy” rating for the company in a research report on Friday, January 30th. Five investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $64.33.

Altria Group Stock Performance

The company has a 50-day moving average of $61.29 and a 200 day moving average of $62.37. The firm has a market cap of $115.84 billion, a P/E ratio of 16.78, a P/E/G ratio of 2.91 and a beta of 0.47.

Altria Group (NYSE:MO) last released its quarterly earnings data on Thursday, January 29th. The company reported $1.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.32 by ($0.02). Altria Group had a negative return on equity of 287.61% and a net margin of 29.84%.The company had revenue of $5.08 billion for the quarter, compared to analyst estimates of $5.02 billion. During the same quarter in the prior year, the company earned $1.30 earnings per share. The business’s revenue was down .5% compared to the same quarter last year. Sell-side analysts anticipate that Altria Group, Inc. will post 5.32 EPS for the current fiscal year.

Altria Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 26th were given a dividend of $1.06 per share. The ex-dividend date was Friday, December 26th. This represents a $4.24 dividend on an annualized basis and a yield of 6.1%. Altria Group’s dividend payout ratio is 103.16%.

Altria Group announced that its Board of Directors has authorized a share buyback plan on Thursday, October 30th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to purchase up to 1.9% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Hedge Funds Weigh In On Altria Group

A number of institutional investors have recently modified their holdings of MO. Johnson & White Wealth Management LLC raised its position in Altria Group by 1.2% in the 4th quarter. Johnson & White Wealth Management LLC now owns 12,704 shares of the company’s stock worth $733,000 after purchasing an additional 154 shares during the last quarter. Kercheville Advisors LLC increased its stake in shares of Altria Group by 3.7% in the 3rd quarter. Kercheville Advisors LLC now owns 4,397 shares of the company’s stock valued at $290,000 after buying an additional 156 shares during the period. Kanawha Capital Management LLC raised its position in shares of Altria Group by 0.8% during the fourth quarter. Kanawha Capital Management LLC now owns 19,546 shares of the company’s stock worth $1,127,000 after acquiring an additional 160 shares during the last quarter. Strategic Advisors LLC lifted its stake in shares of Altria Group by 2.0% during the fourth quarter. Strategic Advisors LLC now owns 8,243 shares of the company’s stock valued at $475,000 after acquiring an additional 160 shares during the period. Finally, Acorn Wealth Advisors LLC boosted its holdings in Altria Group by 1.6% in the fourth quarter. Acorn Wealth Advisors LLC now owns 10,117 shares of the company’s stock valued at $583,000 after acquiring an additional 163 shares during the last quarter. 57.41% of the stock is owned by institutional investors.

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.