The stock of Reynolds American, Inc. (NYSE:RAI) hit a new 52-week low and has $43.09 target or 6.00% below today’s $45.84 share price. The 9 months bearish chart indicates high risk for the $65.46 billion company. The 1-year low was reported on Oct, 19 by Barchart.com. If the $43.09 price target is reached, the company will be worth $3.93 billion less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 5.09M shares traded hands or 9.46% up from the average. Reynolds American, Inc. (NYSE:RAI) has declined 7.20% since March 16, 2016 and is downtrending. It has underperformed by 12.75% the S&P500.
Analysts await Reynolds American, Inc. (NYSE:RAI) to report earnings on October, 25. They expect $0.66 earnings per share, up 20.00% or $0.11 from last year’s $0.55 per share. RAI’s profit will be $942.51M for 17.34 P/E if the $0.66 EPS becomes a reality. After $0.58 actual earnings per share 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. The firm has “Buy” rating by Zacks given on Friday, August 21. The stock has “Underperform” rating given by Credit Agricole on Wednesday, October 21. On Wednesday, September 21 the stock rating was initiated by Jefferies with “Buy”. The firm earned “Equal-Weight” rating on Wednesday, October 28 by Morgan Stanley. The company was initiated on Tuesday, June 14 by Berenberg. Barclays Capital maintained the shares of RAI in a report on Wednesday, September 30 with “Overweight” rating. The rating was maintained by S&P Research with “Strong Buy” on Wednesday, October 28. As per Wednesday, July 29, the company rating was upgraded by S&P Research. The rating was downgraded by RBC Capital Markets to “Outperform” on Tuesday, November 3. The stock of Reynolds American, Inc. (NYSE:RAI) has “Neutral” rating given 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 increased, 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.
Zweig holds 0.09% or 16,961 shares in its portfolio. Kcg Holdg holds 0.01% of its portfolio in Reynolds American, Inc. (NYSE:RAI) for 7,004 shares. Wealth Enhancement Advisory Svcs Ltd Liability has invested 0.36% of its portfolio in Reynolds American, Inc. (NYSE:RAI). Maryland Mngmt last reported 4,100 shares in the company. Meiji Yasuda Life Ins Commerce owns 37,852 shares or 0.33% of their US portfolio. Moody Comml Bank Tru Division has invested 0.03% of its portfolio in Reynolds American, Inc. (NYSE:RAI). Geneva Advsrs Llc has invested 0.42% of its portfolio in Reynolds American, Inc. (NYSE:RAI). Johnson Investment Counsel accumulated 0.03% or 14,361 shares. Virginia Retirement Systems Et Al holds 0.47% or 590,998 shares in its portfolio. Capital Interest Ltd Ca owns 23,800 shares or 0.09% of their US portfolio. Lombard Odier Asset Management (Europe) Ltd holds 10,903 shares or 0.03% of its portfolio. Bank, a Missouri-based fund reported 122,562 shares. Crawford Counsel Inc has 0.27% invested in the company for 124,568 shares. Summit Secs Gru Ltd holds 13,166 shares or 0.38% of its portfolio. Morgan Stanley last reported 0.4% of its portfolio in the stock.
Insider Transactions: Since May 5, 2016, the stock had 0 insider purchases, and 3 sales for $37.24 million net activity. On Thursday, May 5 the insider CAMERON SUSAN M. sold $5.28M. On Thursday, May 5 WAJNERT THOMAS C sold $249,120 worth of the stock or 5,000 shares. The insider British American Tobacco p.l.c. sold 660,385 shares worth $31.72 million.
More important recent Reynolds American, Inc. (NYSE:RAI) news were published by: Wsj.com which released: “Reynolds American CEO to Leave Role at Year’s End” on October 19, 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: Forbes.com and their article: “Reynolds American Enters Oversold Territory” with publication date: October 05, 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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