Altria Group Target of Unusually High Options Trading (NYSE:MO)

Altria Group, Inc. (NYSE:MO) was the target of some unusual options trading activity on Thursday. Stock investors bought 32,932 call options on the stock. This is an increase of approximately 40% compared to the average daily volume of 23,453 call options.

Analyst Ratings Changes

A number of research analysts recently issued reports on MO shares. Stifel Nicolaus dropped their price objective on shares of Altria Group from $72.00 to $68.00 and set a “buy” rating for the company in a report on Friday, January 30th. Argus raised shares of Altria Group to a “hold” rating in a research note on Tuesday, January 13th. Citigroup increased their price target on Altria Group from $57.00 to $65.00 and gave the company a “neutral” rating in a research note on Monday. Finally, UBS Group lifted their price objective on Altria Group from $63.00 to $67.00 and gave the stock a “buy” rating in a research note on Monday, January 26th. Five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $63.67.

Altria Group Trading Up 1.7%

NYSE MO traded up $1.10 on Thursday, hitting $67.02. 3,548,428 shares of the company were exchanged, compared to its average volume of 11,063,412. The company has a market cap of $112.50 billion, a PE ratio of 16.29, a PEG ratio of 3.55 and a beta of 0.47. The stock has a fifty day moving average of $60.06 and a 200-day moving average of $62.08. Altria Group has a 12 month low of $52.40 and a 12 month high of $68.60.

Altria Group (NYSE:MO) last announced its quarterly earnings data on Thursday, January 29th. The company reported $1.30 earnings per share for the quarter, missing the consensus estimate of $1.32 by ($0.02). Altria Group had a net margin of 29.84% and a negative return on equity of 287.61%. 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 posted $1.30 EPS. Altria Group’s revenue for the quarter was down .5% on a year-over-year basis. On average, analysts expect that Altria Group will post 5.32 earnings per share for the current year.

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

Altria Group Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 9th. Investors of record on Friday, December 26th were issued a $1.06 dividend. This represents a $4.24 dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date was Friday, December 26th. Altria Group’s dividend payout ratio is currently 103.16%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its position in shares of Altria Group by 64.7% during the 4th quarter. Brighton Jones LLC now owns 17,702 shares of the company’s stock valued at $926,000 after acquiring an additional 6,954 shares during the period. Sivia Capital Partners LLC grew its holdings in Altria Group by 86.3% during the second quarter. Sivia Capital Partners LLC now owns 6,361 shares of the company’s stock valued at $373,000 after purchasing an additional 2,946 shares during the period. Aberdeen Group plc grew its holdings in Altria Group by 12.1% during the second quarter. Aberdeen Group plc now owns 237,793 shares of the company’s stock valued at $13,894,000 after purchasing an additional 25,750 shares during the period. Vest Financial LLC increased its position in Altria Group by 39.2% in the second quarter. Vest Financial LLC now owns 23,248 shares of the company’s stock worth $1,363,000 after buying an additional 6,552 shares during the last quarter. Finally, Sequoia Financial Advisors LLC raised its stake in shares of Altria Group by 15.4% in the second quarter. Sequoia Financial Advisors LLC now owns 85,850 shares of the company’s stock valued at $5,033,000 after buying an additional 11,430 shares during the period. 57.41% of the stock is currently owned by hedge funds and other institutional investors.

Altria Group Company Profile

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.