Shares of Altria (MO 0.86%) fell today after the company was sued by the Federal Trade Commission over its acquisition of a minority stake in Juul Labs in 2018. The agency wants the Marlboro maker to unwind its investment in the e-cigarette company, alleging that the deal eliminated competition and violated antitrust laws.
Full Answer
What is happening to Altria’s stock price?
displayed on a smartphone. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images) Altria’s stock (NYSE: MO) lost about 32% of its value in the last 3 years, with the stock price dropping from $56 at the end of 2016 to $38 as of 18th May 2020.
How does Altria value Juul stock?
Altria currently values Juul using the fair value method, evaluating the holding each quarter and noting its value and any cash dividends in Altria's earnings statement.
How safe is Altria's dividend?
The stock's 78% dividend-payout ratio means Altria's juicy 8.3% dividend is safe. And as far as investments go, the company still owns 10% of Anheuser-Busch InBev, a stake that's worth roughly $9 billion today and a financial safety net for the company.
What is Altria’s biggest investment in E-vaping?
One major factor – Altria’s big entry in e-vaping with an investment in JUUL and Cronos in 2019. Altria had invested about $12.8 billion for a 35% stake in JUUL Labs, valuing the e-vapor giant, which has a market share of over 70% in the US, at close to $38 billion.
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Is MO a good buy right now?
MO stock is technically not a buy right now. Earnings growth for MO stock might tick higher this year. However, revenue has bounced between anemic growth and modest declines.
Why is Altria down?
Altria Group stock fell Wednesday after Morgan Stanley warned of increasing headwinds to the cigarette industry. Analyst Pamela Kaufman downgraded her rating of the cigarette company to Underweight from Equal Weight and lowered her price target to $50 from $54.
Is Altria a buy hold or sell?
Altria Group has received a consensus rating of Hold. The company's average rating score is 2.29, and is based on 2 buy ratings, 5 hold ratings, and no sell ratings.
Should you buy MO stock?
The financial health and growth prospects of MO, demonstrate its potential to perform inline with the market. It currently has a Growth Score of A. Recent price changes and earnings estimate revisions indicate this stock lacks momentum and would be a lackluster choice for momentum investors.
Is Altria undervalued?
Altria is significantly undervalued at 9.8x. Management realizes the undervaluation, and the company has been pursuing its sizable $3.5 billion share repurchase program. At the end of 2021, the company purchased almost 51.2 million shares and has $1.8 billion remaining under the program.
Is Altria a good stock?
Looking at cash flow, Altria is expected to report cash flow growth of 4.5% this year; MO has generated cash flow growth of 7.3% over the past three to five years. MO should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.
How High Will MO stock go up CNN Money?
Altria Group Inc (NYSE:MO) The 15 analysts offering 12-month price forecasts for Altria Group Inc have a median target of 56.00, with a high estimate of 68.00 and a low estimate of 43.00. The median estimate represents a +28.23% increase from the last price of 43.67.
Does Altria have a lot of debt?
What Is Altria Group's Debt? As you can see below, Altria Group had US$29.7b of debt, at March 2021, which is about the same as the year before. You can click the chart for greater detail. However, it does have US$5.79b in cash offsetting this, leading to net debt of about US$23.9b.
How much debt is Altria?
Altria long term debt for the quarter ending March 31, 2022 was $25.405B, a 9.85% decline year-over-year. Altria long term debt for 2021 was $26.939B, a 3.69% decline from 2020. Altria long term debt for 2020 was $27.971B, a 3.44% increase from 2019.
What is the best tobacco stock?
Market Tobacco StocksSymbolLast Price% ChangeMO43.281.81%RLX2.321.75%BTI42.740.49%PM101.720.14%2 more rows•May 16, 2022
What is the relationship between Philip Morris and Altria?
Altria is the parent company of Philip Morris USA (producer of Marlboro cigarettes), John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., and Philip Morris Capital Corporation.
How much revenue does Altria have?
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, ...
Is Altria going to increase its prices?
However, Altria has resorted to price increases to avoid a sharp decline in revenue. Revenue from the smokeless products division is expected to increase in the near future, driven by higher volume, along with premium pricing and partial phasing out of promotional investments and discounts.
Is Juul a crackdown?
The FDA crackdown on e-cigarettes and many states in the US banning flavored e-cigarettes is expected to hit JUUL the hardest, which has led to the value of Altria’s investment in JUUL dropping by about $8.6 billion in a year. Total expenses as a % of revenue has continuously increased with the rise being sharp in 2019.
