Altria Group Inc. [NYSE: MO] loss -0.93% or -0.41 points to close at $43.87 with a heavy trading volume of 44329863 shares. The company report on March 14, 2024 at 9:56 AM that Altria to Significantly Enhance Cash Returns to Shareholders Through Expanded Share Repurchase Program in Connection with Pricing of Offering of Anheuser-Busch InBev Stock; Raises 2024 Full-Year Earnings Guidance.
Altria Group, Inc. (Altria) (NYSE: MO) today announced that it has agreed to sell 35 million shares of Anheuser-Busch InBev SA/NV (ABI) (NYSE: BUD) (Euronext: ABI) (MEXBOL: ANB) (JSE: ANH) through a global secondary offering (offering) comprised of a public offering of ABI ordinary shares represented by American depositary shares (ADS) in the United States, a public offering of ABI ordinary shares in the United States, a concurrent private placement of ABI ordinary shares in the European Economic Area and the United Kingdom and an offering of ABI ordinary shares, including ABI ordinary shares represented by ADSs, in other countries outside the United States, at a price of $61.50 per ADS, corresponding to €56.17 per ABI ordinary share. In addition, ABI will repurchase $200 million of ordinary shares directly from Altria, concurrently with, and conditional on, completion of the offering. The aggregate amount of the offering and repurchase by ABI is approximately $2.4 billion. Altria has also granted the underwriters an option to purchase up to 5.25 million additional ABI shares owned by Altria at the price per ADS paid by the underwriters in the offering, exercisable within the next 30 days.
In connection with the pricing of the offering, we announce a $2.4 billion increase to our existing $1 billion share repurchase program. Our Board of Directors (Board) has authorized the expanded program, which we expect to complete by December 31, 2024. Share repurchases depend on marketplace conditions and other factors, and the program remains subject to the discretion of our Board. As part of the expanded share repurchase program, we expect to enter into an estimated $2.4 billion accelerated share repurchase (ASR) program. We expect cash savings from the elimination of future dividend payments on the repurchased shares.
The daily chart for MO points out that the company has recorded -0.52% loss over the past six months.
If we look at the average trading volume of 10.14M shares, MO reached to a volume of 44329863 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Altria Group Inc. [MO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MO shares is $46.32 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MO stock is a recommendation set at 2.67. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
UBS have made an estimate for Altria Group Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on January 23, 2024. While these analysts kept the previous recommendation, Stifel raised their target price to Buy. The new note on the price target was released on April 14, 2023, representing the official price target for Altria Group Inc. stock. Previously, the target price had yet another raise to $38, while UBS analysts kept a Sell rating on MO stock. On June 29, 2022, analysts decreased their price target for MO shares from 53 to 36.
The Average True Range (ATR) for Altria Group Inc. is set at 0.67, with the Price to Sales ratio for MO stock in the period of the last 12 months amounting to 3.77. Price to Free Cash Flow for MO in the course of the last twelve months was 8.51 with Quick ratio for the last quarter at 0.39.
Trading performance analysis for MO stock
Altria Group Inc. [MO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.78. With this latest performance, MO shares gained by 8.59% in over the last four-week period, additionally sinking by -0.52% over the last 6 months – not to mention a drop of -6.40% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MO stock in for the last two-week period is set at 70.34, with the RSI for the last a single of trading hit 74.50, and the three-weeks RSI is set at 66.37 for Altria Group Inc. [MO]. The present Moving Average for the last 50 days of trading for this stock 41.01, while it was recorded at 43.45 for the last single week of trading, and 42.52 for the last 200 days.
Altria Group Inc. [MO]: A deeper dive into fundamental analysis
Altria Group Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.39 and a Current Ratio set at 0.49.
Altria Group Inc. [MO]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Altria Group Inc. posted 1.18/share EPS, while the average EPS was predicted by analysts to be reported at 1.18/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Altria Group Inc. go to 2.80%.
An analysis of Institutional ownership at Altria Group Inc. [MO]
The top three institutional holders of MO stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in MO stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in MO stock with ownership which is approximately 5.8325%.
