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Analyst Report: Altria Group, Inc. Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Helix Innovations, and Philip Morris Capital, although the company plans to …
Why did Mo drop?
Is Altria a buy sell or hold?
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Predicted Opening Price for Altria Group of Thursday, May 12, 2022.
| Fair opening price May 12, 2022 | Current price |
|---|---|
| $51.99 | $51.69 (Undervalued) |
Is MO a good buy now?
MO stock has risen above a long consolidation with a 52.69 entry, MarketSmith shows. Shares are currently trading at around 55. Altria stock has an 88 Composite Rating. The stock's EPS Rating, which measures earnings growth, is 76.Apr 29, 2022
What is the target price for Altria stock?
| High | $68.00 |
|---|---|
| Low | $53.00 |
| Average | $57.04 |
| Current Price | $51.57 |
Does Altria have a lot of debt?
How much debt is Altria?
What is the best tobacco stock?
| Best Value Tobacco Stocks | ||
|---|---|---|
| Price ($) | 12-Month Trailing P/E Ratio | |
| Imperial Brands PLC (IMBBY) | 20.14 | 4.9 |
| Vector Group Ltd. (VGR) | 10.13 | 7.1 |
| Japan Tobacco Inc. (JAPAY) | 8.53 | 8.4 |
What is the relationship between Philip Morris and Altria?
What is Zacks rating on MO?
How High Will Mo stock go up CNN Money?
The 15 analysts offering 12-month price forecasts for Altria Group Inc have a median target of 57.00, with a high estimate of 68.00 and a low estimate of 53.00. The median estimate represents a +10.27% increase from the last price of 51.69.
Is Juul a disrupter?
Is Altria a neutral stock?
To justify his downgrade, Spielman argued that e-cigarette maker Juul is "beginning to disrupt the U.S. cigarette industry." As such, when Altria reports earnings next week, he believes it will confirm that industry volumes declined around 6% in the first quarter -- a trend that will mean Altria's valuation remains "depressed."
What happened
More specifically, Altria was downgraded from neutral to buy by Citi analyst Adam Spielman, who also reduced his per-share price target on the stock from $84 to $70. Morgan Stanley also reduced its price target on Altria from $74 to $70, maintaining its "equal weight" rating on the stock. Shares of Altria are currently trading at just above $61.
So what
Shares of Altria Group Inc. (NYSE: MO) were down 5.2% as of 3:00 p.m. EDT Wednesday after several analysts downgraded shares of tobacco products giant.
Now what
To justify his downgrade, Spielman argued that e-cigarette maker Juul is "beginning to disrupt the U.S. cigarette industry." As such, when Altria reports earnings next week, he believes it will confirm that industry volumes declined around 6% in the first quarter -- a trend that will mean Altria's valuation remains "depressed."
How long are futures trading delayed?
The bar isn't set particularly high, as investors expect Altria's quarterly sales will climb less than 1% from the same year-ago period, to roughly $4.62 billion. Thanks in part to tight cost controls, though, Altria's earnings per share are expected to simultaneously climb around 26%, to $0.92.
How often do exchanges report short interest?
Commodities & Futures: Futures prices are delayed at least 10 minutes as per exchange requirements. Change value during the period between open outcry settle and the commencement of the next day's trading is calculated as the difference between the last trade and the prior day's settle.
Who owns restricted shares of a company?
Percentage change in short interest from the previous report to the most recent report. Exchanges report short interest twice a month.
How to calculate restricted stock?
Number of shares that are currently held by investors, including restricted shares owned by the company's officers and insiders as well as those held by the public.
How much has Altria dropped in price?
To calculate, start with total shares outstanding and subtract the number of restricted shares. Restricted stock typically is that issued to company insiders with limits on when it may be traded. A company's dividend expressed as a percentage of its current stock price.
Why did Altria price increase?
Altria (NYSE: MO) saw its stock price plummet by almost 40% over the last 3 years, from $74 in February 2017 to about $45 in February 2020. This drop was primarily driven by a complete washout of profitability in 2019, with the company reporting losses in 2019, led by a surge in impairment charges. This was partly offset by a rise in the price-to-earnings (P/E) multiple, with the company entering into the e-cigarette market with a 35% investment in JUUL, which is set to diversify its portfolio which was earlier restricted to cigarettes and chewable tobacco. We break down the movement in Altria’s stock price into four factors: growth in revenue, drop in net income margin, reduction in share count, and expansion of P/E multiple. View our interactive dashboard analysis What Factors Drove Almost A 40% Drop In Altria’s Stock In The Last 3 Years?
How much revenue does Altria have?
However, Altria has resorted to price increases to avoid a sharp decline in revenue.
How much will the cigarette industry grow in 2020?
A] Revenue Growth. Altria has seen only a modest rise of $0.5 billion in revenues over the last three years, with net revenue growing from $19.3 billion in 2016 to $19.8 billion in 2019. However, growth is likely to accelerate to $20.2 billion in 2020, led by higher revenue from heated tobacco products, benefiting from JUUL and Cronos acquisitions, ...
How much has the EPS declined in 2019?
However, growth is likely to accelerate to $20.2 billion in 2020, led by higher revenue from heated tobacco products, benefiting from JUUL and Cronos acquisitions, partly offset by a drop in cigarette sales.
When did Altria's P/E multiple increase?
EPS has declined steadily over the years from $7.29 in 2016 to -$0.69 in 2019.
Is Forbes opinion their own?
Altria’s P/E multiple expanded from 25.5x in December 2016 to 45x in December 2019.
Summary
Opinions expressed by Forbes Contributors are their own.
Thesis
Altria's share price is down, but that does not mean the company is running into problems.
Altria's Price Is Down - The Only Issue It Has Experienced
Altria ( MO) has seen its share price decline over the last couple of years, but that was not based on crashing earnings or cash flows. Instead, it was purely driven by valuation. Altria's underlying performance has been solid over the last couple of years, including during the current pandemic.
Altria And The Current Crisis
I recently read an article here on Seeking Alpha that argues that Altria was collapsing. In that report, author Income Generator argues that the company's weak share price performance over the last couple of years was caused by its weak performance, the JUUL investment going south, and problems during the pandemic.
Takeaway
Some bearish investors argue that Altria was running into problems due to the current crisis (pandemic and recession), but I don't think that belief is justified when we look at a couple of relevant factors.
One Last Word
Altria's investment in JUUL seems ill-timed in retrospect, but the cash for that acquisition has been paid a long time ago, and any asset writedowns during 2020 or in the future will be a non-cash item.
Will Big Tobacco give up menthol?
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Is Altria stock going down?
Big Tobacco Won’t Give Up Menthol Cigarettes Easily. One analyst says the odds are remote that the FDA will “actually finalize” its menthol and e-cigarette restrictions. Continue reading. as part of an attempt by Scott Gottleib, commissioner at the time, to combat teen smoking.