Price Action To Observe: Does Reynolds American, Inc. Have Any Gas After Today’s Huge Increase?

Price Action To Observe: Does Reynolds American, Inc. Have Any Gas After Today's Huge Increase?

The stock of Reynolds American, Inc. (NYSE:RAI) is a huge mover today! About 1.29 million shares traded hands. Reynolds American, Inc. (NYSE:RAI) has declined 8.92% since March 8, 2016 and is downtrending. It has underperformed by 18.24% the S&P500.
The move comes after 8 months positive chart setup for the $66.24 billion company. It was reported on Oct, 11 by Barchart.com. We have $75.14 PT which if reached, will make NYSE:RAI worth $41.07B more.

Analysts await Reynolds American, Inc. (NYSE:RAI) to report earnings on October, 25. They expect $0.66 EPS, up 20.00% or $0.11 from last year’s $0.55 per share. RAI’s profit will be $942.61M for 17.57 P/E if the $0.66 EPS becomes a reality. After $0.58 actual EPS reported by Reynolds American, Inc. for the previous quarter, Wall Street now forecasts 13.79% EPS growth.

Reynolds American, Inc. (NYSE:RAI) Ratings Coverage

Out of 13 analysts covering Reynolds American Inc. (NYSE:RAI), 7 rate it a “Buy”, 2 “Sell”, while 4 “Hold”. This means 54% are positive. Reynolds American Inc. has been the topic of 22 analyst reports since July 29, 2015 according to StockzIntelligence Inc. As per Wednesday, September 30, the company rating was maintained by Barclays Capital. Berenberg initiated Reynolds American, Inc. (NYSE:RAI) on Tuesday, June 14 with “Hold” rating. The rating was upgraded by Zacks on Thursday, September 17 to “Buy”. Zacks downgraded the shares of RAI in a report on Friday, August 21 to “Buy” rating. Morgan Stanley maintained Reynolds American, Inc. (NYSE:RAI) rating on Wednesday, October 28. Morgan Stanley has “Equal-Weight” rating and $45 price target. Zacks downgraded Reynolds American, Inc. (NYSE:RAI) on Friday, August 14 to “Buy” rating. The stock has “Underperform” rating given by CLSA on Wednesday, October 21. The firm has “Buy” rating by Citigroup given on Tuesday, September 13. The firm earned “Outperform” rating on Tuesday, November 3 by RBC Capital Markets. The firm earned “Neutral” rating on Monday, September 12 by Goldman Sachs.

According to Zacks Investment Research, “Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company, Inc., Lane Limited and R.J. Reynolds Global Products, Inc. R.J. Reynolds Tobacco Company, the second- largest U.S. tobacco company, manufactures about one of every three cigarettes sold in the United States, including five of the nation’s 10 best-selling brands: Camel, Winston, KOOL, Salem and Doral. Santa Fe Natural Tobacco Company, Inc. manufactures Natural American Spirit cigarettes.”

Insitutional Activity: The institutional sentiment increased to 1.15 in Q2 2016. Its up 0.08, from 1.07 in 2016Q1. The ratio is positive, as 44 funds sold all Reynolds American, Inc. shares owned while 247 reduced positions. 55 funds bought stakes while 280 increased positions. They now own 644.47 million shares or 0.10% more from 643.79 million shares in 2016Q1.
Madison Investment Hldgs has invested 0.01% of its portfolio in Reynolds American, Inc. (NYSE:RAI). Atria Invs Lc, a North Carolina-based fund reported 28,026 shares. Marshall Wace Llp last reported 483,588 shares in the company. Cetera Advsr Lc reported 7,900 shares or 0.03% of all its holdings. Grassi Investment Mngmt holds 1.61% of its portfolio in Reynolds American, Inc. (NYSE:RAI) for 157,379 shares. Moreover, Clarivest Asset Mgmt Limited Liability Co has 1.95% invested in Reynolds American, Inc. (NYSE:RAI) for 1.21 million shares. Moreover, Chevy Chase Tru has 0.21% invested in Reynolds American, Inc. (NYSE:RAI) for 712,044 shares. Td Asset Mngmt Inc has 0.09% invested in the company for 955,960 shares. Macnealy Hoover Invest last reported 8,000 shares in the company. 1St Inc holds 0.13% of its portfolio in Reynolds American, Inc. (NYSE:RAI) for 17,011 shares. Capital Interest Ltd Ca owns 23,800 shares or 0.09% of their US portfolio. Altavista Wealth has invested 0.12% of its portfolio in Reynolds American, Inc. (NYSE:RAI). Wright Invsts Serv holds 0.63% of its portfolio in Reynolds American, Inc. (NYSE:RAI) for 28,213 shares. Norinchukin Fincl Bank The has 0.06% invested in the company for 43,422 shares. Kanaly Com accumulated 0.52% or 47,463 shares.

Insider Transactions: Since May 5, 2016, the stock had 0 insider purchases, and 3 sales for $37.24 million net activity. Shares for $31.72M were sold by British American Tobacco p.l.c.. WAJNERT THOMAS C had sold 5,000 shares worth $249,120. Another trade for 105,766 shares valued at $5.28M was made by CAMERON SUSAN M. on Thursday, May 5.

More important recent Reynolds American, Inc. (NYSE:RAI) news were published by: Forbes.com which released: “Reynolds American Enters Oversold Territory” on October 05, 2016, also Fool.com published article titled: “Better Buy: Philip Morris International Inc. vs. Reynolds American, Inc.”, Fool.com published: “Better Buy: Altria Group Inc. vs. Reynolds American” on October 03, 2016. More interesting news about Reynolds American, Inc. (NYSE:RAI) was released by: Bloomberg.com and their article: “Camel Smoker John Boehner Joins Board of Reynolds American” with publication date: September 15, 2016.

RAI Company Profile

Reynolds American Inc. (RAI), incorporated on January 2, 2004, is a holding company. The Company’s divisions are RJR Tobacco, Santa Fe and American Snuff. The RJR Tobacco segment consists principally of the primary activities of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the domestic activities of Santa Fe Natural Tobacco Company, Inc. (SFNTC). The American Snuff segment consists of the primary activities of American Snuff Company, LLC (American Snuff Co.). The Company’s operating subsidiaries include R. J. Reynolds Tobacco Company, SFNTC, American Snuff Co., R. J. Reynolds Vapor Company (RJR Vapor), Niconovum USA, Inc. and Niconovum AB.

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