Reynolds American (RAI) stock coverage was initiated with a “buy” rating and $57 price target at Citigroup on Tuesday. The ROA for Reynolds American Inc. tells us exactly what earnings were generated from the invested capital. That is compared with the $0.55 in earnings per share it reported during the same period previous year. Credit Agricole SA raised shares of Reynolds American from an underperform rating to an outperform rating and increased their target price for the company from $52.00 to $54.00 in a research note on Monday, August 8th.
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Goldman is a brokerage house chasing shares of Reynolds American Inc.
Spielman expects sales growth to remain strong during the next couple of years and predicts that Reynolds American, Inc. will experience improved sales and earnings growth based on faster market share gains for both cigarettes and dip. Following the completion of the transaction, the insider is left with a stake of 269,001 shares, amounting $12764097. The company has dropped -6.37% in past 3 months and in the last five trades has moved down -5.54%. The investment management firm now holds a total of 55,408 shares of Reynolds American which is valued at $2,803,645.Reynolds American makes up approximately 0.14% of Etrade Capital Management’s portfolio. The ex-dividend date is Thursday, September 8th. Its debt-to-equity ratio fell to 1.4x in 2Q16, compared with 1.9x in 4Q15. The median estimate represents a 3.05% increase from the last price of 72.78. Prudential Financial Inc. boosted its stake in shares of Reynolds American by 155.4% in the second quarter. The short ratio in the company’s stock is documented at 2.69 and the short float is around of 1.42%. (SFNTC). The Companys wholly owned subsidiaries include R. J. Reynolds Tobacco Company American Snuff Company LLC (American Snuff Co.) Lorillard Inc. Wajnert Thomas C retains 25,000 shares in the stock after this transaction. Vanguard Group Inc. now owns 62,617,955 shares of the company’s stock worth $3,376,987,000 after buying an additional 1,343,766 shares in the last quarter.
Reynolds American Inc.’s (RAI) has a Gap of 0.33% and it value Change from Open was at -1.23%. The Company operates through three segments: RJR Tobacco American Snuff and Santa Fe.
While the investment cases and valuations are similar for Reynolds and fellow tobacco company Altria (MO), Citi prefers Reynolds and believes it should trade at a premium.
Additionally, Citi said the two companies can rerate further relative to Philip Morris (PM) because domestic tobacco earnings are more predictable as they aren’t hurt by FX-related volatility.
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