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1年前
A Blue Chip Stock With a 9.5% Yield
By: 24/7 Wall St. | January 16, 2024
Yield stocks don’t grab many headlines during a period when the value of the Magnificent Seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla) have much more than doubled in the past year, compared to a 20% rise in the S&P 500. Why invest in any shares that might underperform the S&P 500 in 2024? (Apple’s stock is actually down in 2024, and tech share prices are shaky in general.) The answer is safety, stability and a yield much better than anything short of junk bonds.
Altria Group Inc. (NYSE: MO), the huge tobacco company, has a dividend yield of 9.4%. Altria stock generally does not move much, either up or down. However, it is lower by 7% compared to the start of the year. (These are the seven highest-yielding 2024 Dividend Kings to buy and hold forever.)
Altria’s revenue fell 4% year over year to $6.3 billion in the most recent quarter. Net income was up sharply from $224 million to $2.2 billion. The 35% net income margin shows the leverage Altria has in making commodity products on which it can get a strong brand price. Almost all its cigarette sales are under the Marlboro brand, which, according to BrandZ, is the 30th most valuable brand in the world at $57 billion. Altria’s chief executive officer, Billy Gifford, commented about the most recent financial results: “Our highly profitable traditional tobacco businesses were resilient in a dynamic operating environment during the third quarter and first nine months, providing fuel for our business transformation and significant cash returns to our shareholders.”
Part of Altria’s magic for yield investors is the $11 billion it has on its balance sheet. Altria does not need this money for operations because of positive cash flow. That means the dividend is solid. The tobacco business may be out of favor, and massive shareholder lawsuits in 1998 that cost the industry $246 billion. Yet, the financial effects of that are long gone as a factor in Altria’s dividend.
Altria’s pitch to investors who are reluctant to invest in a company that makes a deadly product is that it is creating less deadly tobacco products. That is how it describes itself to Wall Street. It is what management calls “Moving Beyond Smoking,” which makes it a “tobacco harm reduction company.” This means producing “smoke-free” tobacco products. Nevertheless, cigarettes drive Altria’s financials and will for many years.
Altria stock investors who are willing to ignore the ill effects of smoking get a tremendous and steady yield.
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1年前
A Blue Chip Stock With a 9% Ultra-High Yield
By: 24/7 Wall St. | December 18, 2023
Yield stocks don’t grab many headlines during a period when the Magnificent Seven (Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Tesla and Meta) are higher by 75% this year, compared to a 23% rise in the S&P 500. Why invest in any shares that might underperform the broader market? The answer is safety, stability and a yield much better than anything short of junk bonds in the broader bond market. (Here are the seven highest-yielding ‘Strong Buy’ Dividend Kings you can buy and hold forever.)
Altria Stock
Huge tobacco company Altria Group Inc. (NYSE: MO) has a yield of 9.4%. Altria stock does not move that much, either up or down. It is lower by 7% compared to the start of the year.
Altria’s revenue fell 4% to $6.3 billion in the most recent quarter. Net income was up sharply from $224 million to $2.2 billion. The 35% net income margin shows the leverage Altria has in making commodity products on which it can get a strong brand price. Almost all of its cigarette sales are under the Marlboro brand. According to BrandZ, that brand is the 30th most valuable in the world at $57 billion. Billy Gifford, Altria’s chief executive officer, commented about the most recent financial results: “Our highly profitable traditional tobacco businesses were resilient in a dynamic operating environment during the third quarter and first nine months, providing fuel for our business transformation and significant cash returns to our shareholders.”
Part of the Altria stock magic for yield investors is the $11 billion it has on its balance sheet. Altria does not need this money for operations because of its positive cash flow. That means the dividend is solid. The tobacco business may be out of favor, but, except for massive shareholders’ lawsuits in 1998, that cost the industry $246 billion.
Altria’s pitch to investors who are reluctant to invest in a company that makes a deadly product is that it is creating less deadly tobacco products. That is how it describes itself to Wall Street. It is what management calls “moving beyond smoking,” which makes it a “tobacco harm reduction company.” This means producing “smoke-free” tobacco products. Nevertheless, cigarettes drive Altria’s financials and will for many years.
Investors who are willing to ignore the effects of smoking get a huge and steady yield with Altria stock.
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1年前
Bridgewater Associates LP Has $57.81 Million Stock Holdings in Altria Group, Inc. (MO)
By: MarketBeat | November 25, 2023
• Bridgewater Associates LP lifted its stake in Altria Group, Inc. (NYSE:MO) by 18.7% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 1,276,258 shares of the company's stock after purchasing an additional 200,981 shares during the quarter. Bridgewater Associates LP owned 0.07% of Altria Group worth $57,814,000 as of its most recent filing with the Securities & Exchange Commission...
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1年前
Altria Group sees insider buying amid concerns over growth consistency
By: Investing | November 12, 2023
An analysis of Altria Group , Inc. (NYSE:MO) has highlighted a blend of optimism and caution among investors and analysts. The company, known for its significant institutional ownership, with 60% of its shares held by institutions, has recently witnessed insider buying that suggests a positive outlook on its future performance.
The top 25 shareholders, including prominent names such as The Vanguard Group, Inc., Capital Research and Management Company, and BlackRock (NYSE:BLK), Inc., collectively control 42% of Altria Group. Despite this substantial institutional presence, there is no single dominant shareholder exerting control over the company.
On the insider front, ownership may be less than 1%, but recent activities show board members are collectively investing in the company's potential, owning about $49 million in shares. This insider buying is often interpreted as confidence in the company's strategic direction and future earnings prospects.
Additionally, the general public maintains a significant interest in Altria Group, holding 40% of the company's shares. This diverse shareholder base contributes to a robust market for the company's stock.
However, analysts are paying close attention to risks associated with 'crowded trades.' This concern arises when multiple institutions own large portions of a company's stock. If sentiment shifts negatively, these institutions may attempt to exit their positions quickly, leading to a rapid sell-off that can negatively impact the stock price. For Altria Group, with its lack of a history of consistent growth, this risk is particularly noteworthy.
The company's future is being closely watched by analysts who provide coverage and forecasts that are vital for investors to gauge Altria Group's prospects. Nonetheless, investors have been cautioned about one specific warning sign related to Altria Group. While details of this risk were not disclosed, it underscores the importance of due diligence and consideration of potential pitfalls when making investment decisions in the company.
In summary, while insider buying at Altria Group may indicate a positive sentiment from those closest to the company's operations, investors are advised to weigh this against the broader context of the company's performance history and potential risks highlighted by analysts.
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1年前
Altria Group (MO) cuts profit forecast as smokers swap to cheaper brands
By: Investing | October 26, 2023
(Reuters) - Tobacco giant Altria Group (NYSE:MO) cut its annual profit forecast on Thursday as more smokers swapped its higher priced cigarettes for cheaper brands or smoking alternatives, sending the Marlboro maker's shares lower.
The company said it now expects adjusted profit of $4.91 to $4.98 per share this year, compared with a previous forecast of $4.89 to $5.03 per share.
Altria has been hiking prices of its traditional products to offset volume declines as many consumers, wary of health risks, opt for new options like vapes or oral nicotine.
But price increases hit Marlboro's market share, Altria said, as inflation-weary consumers try to conserve cash by switching to cheaper brands like USA Gold.
Net revenues from smokeable products fell 5.3% in the third quarter, as higher pricing only partially offset lower shipment volumes and higher promotional investments.
Chief Executive Billy Gifford noted Altria's cigarette business remained "highly profitable", providing fuel for the company's switch to smoking alternatives.
Altria's shares fell around 2% in pre-market trade.
Rae Maile, analyst at Panmure Gordon, said Altria was still effectively leveraging its ability to raise prices to maintain revenues and profit.
"The model is not broken," he said, adding Altria's profits remained at similar levels to last year despite volume declines.
Altria is also continuing its push into smoking alternatives, following a disastrous foray into e-cigarettes via its 2018 investment in Juul Labs, which lost it billions of dollars.
It made a new bet via the acquisition of pod-based vape NJOY ACE in June, but NJOY lags far behind Juul in terms of market share. Altria said the reported shipment volume for NJOY ACE in the third quarter was about 7.5 million pods.
Analysts at Jefferies said the scant progress update on NJOY, combined with the slowdown in traction of its nicotine pouch product on!, meant the market may not view this as a good quarter for Altria.
A 36.7% increase in on! shipment volumes helped offset a decline in traditional moist-cut oral tobacco, but fell short of the 47.8% growth seen in the second quarter.
Overall, Altria's third quarter revenues net of excise taxes of $5.28 billion were also slightly behind analyst expectations, according to LSEG data.
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1年前
Altria's NJOY sues 34 e-vapor product makers, seeks damages
By: Investing | October 19, 2023
(Reuters) - Marlboro maker Altria Group (NYSE:MO) on Thursday said its e-cigarette brand NJOY had filed a suit seeking an injunction against a number of companies manufacturing and selling allegedly illicit e-vapor products in the United States.
The lawsuit, filed in a California court, claimed the products marketed by 34 foreign and domestic companies - including brands such as Elf Bar, Esco Bar and Puff Bar - violated the state's flavor ban law and "illegally competed" against companies that complied with state and federal laws.
NJOY, one of the few e-cigarette makers whose products have clearance from federal regulators, sought a nationwide injunction against the import, marketing and sale of these products, along with compensatory and punitive damages. It also said it might add more makers of vapor products to the complaint.
The move echoes a similar complaint by British American Tobacco (NYSE:BTI) last week to the U.S. International Trade Commission, alleging several manufacturers and retailers of popular disposable vapes were engaged in unfair imports. It also underscores some industry players' concerns about weak enforcement of the rules governing disposable vapes.
The U.S. Food and Drug Administration (FDA) has struggled to combat a surge in disposable vaping brands, some of which are being sold illegally, yet have come to dominate the market.
Last December, the U.S. Supreme Court had allowed California to enforce a voter-approved ban on flavored tobacco products in America's most populous state, denying a bid by a unit of British American Tobacco to block it on the grounds that the policy conflicted with federal laws.
Many other states have restricted flavored vaping products and several U.S. municipalities have adopted their own bans.
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1年前
Why 6 of the Highest-Yielding S&P 500 Stocks May Be the Best Q4 Bets Now
By: 24/7 Wall St. | October 11, 2023
• Altria
This maker of tobacco products offers value investors a great entry point now as it has been hit as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.
Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer, which some feel is worth more than $10 billion and may be a segment of the company that could be sold. Given the public relations issues the company has faced this year, it could very well be on the chopping board. (See which 19 companies were caught trying to manipulate the free market.)
The company has increased its dividend for 52 consecutive years and announced another increase effective October 10, when the dividend went to $0.98 per share from $0.94.
Shareholders now receive a 9.18% dividend. Jefferies has a $55 target price, while the consensus target is $48.89. Altria stock closed on Tuesday at $42.49.
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2年前
FCF Advisors LLC Purchases 9,493 Shares of Altria Group, Inc. (MO)
By: MarketBeat | September 29, 2023
• FCF Advisors LLC lifted its position in shares of Altria Group, Inc. (NYSE:MO) by 22.0% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 52,608 shares of the company's stock after acquiring an additional 9,493 shares during the quarter. Altria Group makes up about 1.2% of FCF Advisors LLC's investment portfolio, making the stock its 14th largest position. FCF Advisors LLC's holdings in Altria Group were worth $2,383,000 at the end of the most recent reporting period...
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2年前
Altria's attractive dividend yield faces challenges amid declining cigarette sales
By: Investing.com | September 28, 2023
The consumer staples company, Altria (NYSE:MO), well-known for its high dividend yield of 9.37%, has been under scrutiny as the long-term sustainability of its business model comes into question. The company's dividend, which has been increased annually for 54 consecutive years, is currently safe with a payout ratio of about 100% and a cash dividend payout ratio of roughly 80%. However, the declining volume of cigarette sales poses a significant challenge to Altria's business.
Altria's Marlboro, the largest cigarette brand in the U.S., holds a substantial 42% market share. Despite this dominance, the company's cigarette business is experiencing a long-term secular decline, with smoking habits becoming increasingly less popular. In Q2 2023, Altria sold approximately 21 billion cigarettes, down from nearly 23 billion in the same quarter of the previous year — an 8% decline in volume. This trend isn't new; over the past five years, since Q2 2018, the company's volume has fallen by almost 25%, from around 27.7 billion cigarettes.
To maintain its growing dividend amidst falling sales, Altria has been increasing cigarette prices. However, this strategy may not be sustainable in the long term as it risks exacerbating volume decline. The company's attempts to diversify into marijuana and vaping have so far not been successful. Although Altria recently purchased NJOY in another attempt to break into the vaping market, past failures warrant caution from investors.
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2年前
Altria’s Option Activity Wednesday Was Smokin’: Time to Buy?
By: Barchart | September 15, 2023
How busy was Altria’s (MO) options trading on Wednesday? It had no less than 11 puts or calls exhibiting unusual options activity -- a Vol/OI ratio of 1.25x or higher -- with volumes of 10,000 or more on five of them.
Something is up. It’s been two years since Altria experienced volume like yesterday’s. I’m guessing big hitters picked up long-duration calls, given that the put/call ratio was 0.02.
But as I’ve said, I’m a neophyte regarding options. My skill lies in assessing a company’s strengths and weaknesses vis-a-vis its business model. Good business models -- think Costco (COST) -- never go out of style.
Yesterday’s volume doesn’t confirm that investors are building positions in Altria. However, with volume of just 18,099 at midday on Thursday, I wouldn’t discount it.
So, I’ll answer two questions for readers: First, is Altria a long-term buy? Secondly, which of the 11 unusually active options from Wednesday were worth buying to secure Altria stock in the future?
Yay, Or Nay To Altria?
Everyone and their dog knows about Altria’s humongous dividend yield. With the October 2023 payment of $0.98, up four cents from July, it will have an annualized rate of $3.92, yielding 8.9%. It has increased its dividend for the 58th time over the past 54 years, putting it in an elite company. It is one of only 49 S&P 500 stocks that have increased their annual dividend payout for 50 or more consecutive years.
Also keen about share repurchases, Altria’s shareholder yield -- dividend yield plus buyback yield -- is 10.4%, putting it ahead of most companies in the index.
So, even with interest rates as high as they are, it’s an enticing yield. If you have no problem owning so-called sin stocks like Altria, you’d be silly not to consider MO, which pays you to wait for its share price to appreciate.
For example, although MO stock over the past five years is down more than 29%, its annualized total return is flat, thanks to its consistent dividends, at -0.05%. Over 15 years, it’s 9.3%. Anything over 8% is good in my books.
Earlier this year, Altria announced that it was getting back into the e-cigarette game, buying NJOY Holdings for $2.75 billion, plus $500 million in potential earnouts for achieving certain regulatory approvals. The acquisition is part of the company’s Moving Beyond Smoking business strategy.
“We are excited to add NJOY’s e-vapor intellectual property as a new platform that we believe we can build on to help more adult smokers transition to smoke-free alternatives,” Olivier Houpert, Altria’s Chief Innovation and Product Officer, said in the company’s March press release announcing the deal.
The company has four product segments in its smoke-free offerings: Smokeless Tobacco, often called chewing tobacco, Nicotine Pouches, E-Vapor (NJOY acquisition), and Heated Tobacco products through its majority-owned joint venture with JT Group, the owners of Japan Tobacco.
The e-vapor category generated $7 billion in U.S. retail sales in the past year. It is the largest smoke-free category in the U.S. Altria has an opportunity to capture a big chunk of that.
Altria’s goal for its smoke-free products is $5 billion by 2028. It finished 2022 with $2.6 billion. The acquisition of NJOY should help it meet its goal.
I don’t think there’s any question; Altria is a controversial stock, given its history in the cigarette business. However, the appreciation potential of its smoke-free products combined with the cash flow from its smokable products makes it an excellent contrarian play.
I say yay to MO stock.
The Best Option To Play MO
Over the past five years, MO stock has only traded below $40 on one occasion from March to November 2020. That would make a perfect entry point for buying Altria stock.
Of the 11 unusually active options from yesterday, none will get you all the way there. However, two stand out for me. One is a put -- the only put, by the way -- and the other a call.
The put has a $47.50 strike price with a June 21/2024 expiry, 281 days from now. As of yesterday’s close of $44.75, it was $2.75 in the money. With a $5.25 bid, your net price paid should you have to buy the shares would be $42.25, $1.69 below where it’s currently trading.
With 281 days to expiration, anything could happen. More than likely, it moves above the strike, and you’re left with the premium income yielding 15.2% on an annualized basis. That’s not a bad consolation prize.
As for the call, I like the Jan. 17/2025 $35 strike with a $9.85 ask. Sure, you’re paying 28% of the strike price to secure your right to buy 100 shares of MO stock in 492 days. But at a net price of $44.85, you could be sitting on a decent entry point should Altria shares catch fire over the next 70 weeks.
The volume yesterday on that call was 34,834 or 12.85x its open interest. Anything over 10x suggests there’s some unusual interest.
Both the put and call have long durations that provide sufficient time for the Altria Moving Beyond Smoking business strategy to gain traction with investors.
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2年前
Renaissance Group LLC Has $25.85 Million Holdings in Altria Group, Inc. (MO)
By: MarketBeat | September 9, 2023
• Renaissance Group LLC boosted its holdings in shares of Altria Group, Inc. (NYSE:MO) by 7.2% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 579,306 shares of the company's stock after buying an additional 38,820 shares during the quarter. Renaissance Group LLC's holdings in Altria Group were worth $25,849,000 at the end of the most recent reporting period...
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2年前
Pacer Advisors Inc. Has $290.19 Million Holdings in Altria Group, Inc. (MO)
By: MarketBeat | July 21, 2023
• Pacer Advisors Inc. increased its position in shares of Altria Group, Inc. (NYSE:MO) by 25.2% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 6,503,577 shares of the company's stock after purchasing an additional 1,308,730 shares during the quarter. Altria Group makes up about 1.2% of Pacer Advisors Inc.'s holdings, making the stock its 5th biggest position. Pacer Advisors Inc. owned approximately 0.36% of Altria Group worth $290,190,000 at the end of the most recent reporting period...
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2年前
Altria Group, Inc. (MO) Holdings Raised by HB Wealth Management LLC
By: MarketBeat | June 24, 2023
• HB Wealth Management LLC grew its stake in shares of Altria Group, Inc. (NYSE:MO) by 6.1% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 49,653 shares of the company's stock after purchasing an additional 2,838 shares during the period. HB Wealth Management LLC's holdings in Altria Group were worth $2,216,000 as of its most recent SEC filing...
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2年前
Range Financial Group LLC Has $1.45 Million Holdings in Altria Group, Inc. (MO)
By: MarketBeat | June 16, 2023
• Range Financial Group LLC lifted its stake in shares of Altria Group, Inc. (NYSE:MO) by 15.6% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 32,546 shares of the company's stock after buying an additional 4,387 shares during the period. Altria Group comprises approximately 1.0% of Range Financial Group LLC's investment portfolio, making the stock its 27th biggest position. Range Financial Group LLC's holdings in Altria Group were worth $1,452,000 as of its most recent filing with the SEC...
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2年前
Kovack Advisors Inc. Grows Stake in Altria Group, Inc. (MO)
By: MarketBeat | June 15, 2023
• Kovack Advisors Inc. raised its stake in Altria Group, Inc. (NYSE:MO) by 15.4% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 26,767 shares of the company's stock after acquiring an additional 3,577 shares during the period. Kovack Advisors Inc.'s holdings in Altria Group were worth $1,224,000 as of its most recent SEC filing...
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2年前
It Might Not Be A Great Idea To Buy Altria Group, Inc. (MO) For Its Next Dividend
By: Simply Wall St | June 9, 2023
Altria Group, Inc. (NYSE:MO) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Thus, you can purchase Altria Group's shares before the 14th of June in order to receive the dividend, which the company will pay on the 10th of July.
The company's next dividend payment will be US$0.94 per share, on the back of last year when the company paid a total of US$3.76 to shareholders. Based on the last year's worth of payments, Altria Group has a trailing yield of 8.3% on the current stock price of $45.36. If you buy this business for its dividend, you should have an idea of whether Altria Group's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Altria Group paid out 120% of profit in the past year, which we think is typically not sustainable unless there are mitigating characteristics such as unusually strong cash flow or a large cash balance. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out more than half (74%) of its free cash flow in the past year, which is within an average range for most companies.
It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Altria Group fortunately did generate enough cash to fund its dividend. Still, if the company repeatedly paid a dividend greater than its profits, we'd be concerned...
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2年前
Buy-Rated Stocks With Dividends: Altria Group Inc. (NYSE: MO)
By: 24/7 Wall St. | May 15, 2023
• Altria
This maker of tobacco products offers value investors a great entry point now as it has been hit as cigarette sales have slowed. Altria Group Inc. (NYSE: MO) is the parent company of Philip Morris USA (cigarettes), UST (smokeless), John Middleton (cigars), Ste. Michelle Wine Estates and Philip Morris Capital. PMUSA enjoys a 51% share of the U.S. cigarette market, led by its top cigarette brand Marlboro.
Altria also owns over 10% of Anheuser-Busch InBev, the world’s largest brewer, which some feel is worth more than $10 billion and may be a segment of the company that could be sold. When Altria posted outstanding fourth-quarter results, it also announced a shareholder-friendly $1 billion stock buyback plan.
Altria stock investors receive an 8.23% dividend. The Goldman Sachs target price is $52, while the consensus target is $49.62. The shares closed on Friday at $45.67.
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2年前
Altria agrees to $235 million settlement to resolve Juul-related cases
By: Investing.com | May 10, 2023
(Reuters) -Altria Group Inc said Wednesday that it will pay $235 million to settle at least 6,000 lawsuits accusing it of fueling a teen vaping epidemic through its former investment in e-cigarette maker Juul Labs Inc.
The deal ends nearly all of the litigation brought against the tobacco giant over Juul by local government bodies and individuals across the United States. It came shortly after San Francisco's public school district finished presenting its case against the company in a jury trial, which will now be cut short.
Sarah London, one of the lead attorneys for plaintiffs in the litigation, in a statement said the deal would "provide extraordinary and truly meaningful relief for youth, parents, and governmental organizations nationwide."
Altria (NYSE:MO) expects to record a pre-tax charge of $235 million in the second quarter of 2023 and intends to exclude it from adjusted earnings per share.
"While we continue to believe the claims against us are meritless, we believe this settlement avoids the uncertainty and expense of a protracted legal process and is in the best interest of our shareholders," said Murray Garnick, Altria's executive vice president and general counsel.
The company in March announced that it had given up its 35% stake in Juul in exchange for licenses to some of Juul's intellectual property. As of December, its share of Juul was valued at $250 million, down from $12.8 billion in 2018.
Plaintiffs in the lawsuits claimed that Juul marketed to teenagers with sweet flavors and flashy social media campaigns. They said Altria helped the strategy by letting Juul use its sales force and place its products next to Altria's on shelves.
Juul previously settled most of the cases against it, paying more than $1 billion to 48 states and territories and $1.7 billion to individuals and local government entities.
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2年前
Gibson Wealth Advisors LLC Raises Stake in Altria Group, Inc. (MO)
By: MarketBeat | May 3, 2023
• Gibson Wealth Advisors LLC increased its stake in Altria Group, Inc. (NYSE:MO) by 6,200.0% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 6,300 shares of the company's stock after purchasing an additional 6,200 shares during the quarter. Gibson Wealth Advisors LLC's holdings in Altria Group were worth $285,000 at the end of the most recent quarter...
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2年前
Juul, Altria settle with Minnesota over teen vaping addiction
By: Investing.com | April 17, 2023
(Reuters) -E-cigarette company Juul Labs Inc and its former largest investor, Marlboro maker Altria Group (NYSE:MO) Inc, on Monday settled claims by the state of Minnesota that accused them of fueling teen vaping addiction.
The settlement was announced by Minnesota Attorney General Keith Ellison and by Juul as a trial in the case, which had kicked off in late March, was nearing its end.
It is the latest in a series of settlements over e-cigarette marketing practices by Juul, but the first such public settlement by Altria, which still faces thousands of similar lawsuits including one by San Francisco's public school district set to go to trial next week.
Ellison said in a statement that the settlement was in "the best interest of Minnesotans" and that its terms would be announced in 30 days.
A Juul spokesman said the company was pleased with the deal and "focused on our path forward to maximize the value and impact of our product technology and scientific foundation."
Altria did not immediately respond to a request for comment.
Minnesota's lawsuit, filed in 2019, was the first to go to trial of thousands by state governments, school districts and individuals around the country against Juul and Altria over underage vaping.
Juul has now settled most of that litigation, agreeing to pay more than $1 billion to settle with 48 states and territories including Minnesota, and $1.7 billion to resolve thousands of lawsuits by individuals and local government entities. Only Florida, Michigan, Maine and Alaska have not reached settlements with the company.
Minnesota, like other plaintiffs, alleged that Juul sold its e-cigarettes in sweet flavors and promoted them on social media to appeal to underage consumers. It said Altria helped Juul market its products, including by providing it access to its sales force and including Juul advertisements in Marlboro products.
Both companies have denied wrongdoing.
Juul in 2019 pulled most of its e-cigarette flavors from the market and halted much of its advertising under pressure from regulators. The U.S. Food and Drug Administration last June briefly banned the products, though it put the ban on hold and agreed to reconsider after the company appealed.
Altria last month announced that it had given up its investment in Juul in exchange for some of Juul's intellectual property. As of December, its share of Juul was valued at $250 million, down from $12.8 billion in 2018.
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2年前
Key Client Fiduciary Advisors LLC Acquires 3,952 Shares of Altria Group, Inc. (MO)
By: MarketBeat | March 23, 2023
• Key Client Fiduciary Advisors LLC raised its holdings in Altria Group, Inc. (NYSE:MO) by 33.0% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 15,921 shares of the company's stock after buying an additional 3,952 shares during the period. Key Client Fiduciary Advisors LLC's holdings in Altria Group were worth $728,000 at the end of the most recent quarter...
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2年前
Cigarette giant Altria Group considers non-nicotine product expansion - WSJ
By: Investing.com | March 24, 2023
Altria Group (NYSE:MO), America's biggest cigarette company, is considering a move to expand into non-nicotine products, according to a report by The Wall Street Journal on Friday.
The company is looking to move into less harmful products after "a string of failures," the report states. The company has an array of heated-tobacco devices, e-cigarettes, and oral nicotine pouches in the works, as well as the planned acquisition of NJOY Holdings Inc.
The company is aiming to take its reduced-risk products abroad and is looking at expanding into non-nicotine offerings such as cannabis products and caffeine pouches.
Altria has also set volume and revenue goals for its transition to smoke-free products, aiming to increase its smoke-free sales volume by at least 35% over the next five years and setting the goal of doubling its net revenue from smoke-free products to $5 billion by 2028, with $2B from new reduced-risk products.
The maker of Marlboro cigarettes announced Thursday that it has "aspirations to compete in the international innovative smoke-free and non-nicotine categories."
"We believe the international smoke-free and non-nicotine categories combined represent multi-billion dollar opportunities for us. Our teams are evaluating these opportunities and expect to finalize strategies for these growth areas over the next 12 months," the company said.
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2年前
Verity & Verity LLC Grows Stock Holdings in Altria Group, Inc. (MO)
By: MarketBeat | March 19, 2023
• Verity & Verity LLC raised its holdings in Altria Group, Inc. (NYSE:MO) by 2.1% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 191,764 shares of the company's stock after purchasing an additional 3,921 shares during the quarter. Verity & Verity LLC's holdings in Altria Group were worth $8,766,000 as of its most recent filing with the Securities and Exchange Commission...
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2年前
Altria to buy e-cigarette startup NJOY for $2.8 billion after Juul exit
By: Investing.com | March 6, 2023
(Reuters) -Altria Group Inc said on Monday it would buy e-cigarette startup NJOY Holdings Inc for about $2.75 billion in cash, in fresh bets by the Marlboro maker on the fast-growing market after losing billions through its investment in Juul.
The tobacco giant said it had exchanged its investment in Juul for certain of the once red-hot vaping company's heated tobacco intellectual property, at a time when it faces thousands of lawsuits and reportedly prepared to file for bankruptcy.
The value of Altria (NYSE:MO)'s investment in Juul slid to $250 million as of December last year from $12.8 billion it invested in 2018.
The NJOY deal will include an additional $500 million in cash payments subject to regulatory outcomes related to some NJOY products, Altria said.
NJOY is one of the handful of vaping companies whose products have clearance from federal regulators. It makes NJOY Ace Pods - currently the only pod-based e-vapor product with market authorizations from the U.S. Food and Drug Administration - and disposable e-cigarettes under the NJOY Daily brand.
Altria said it had multiple sources of funding for the deal, including cash from a $2.7 billion agreement it entered with Philip Morris International Inc (NYSE:PM) last year for the IQOS Tobacco Heating System.
The buyout is expected to add to Altria's adjusted per-share profit within three years of closing. The company, which did not provide a timeline for deal completion, also reaffirmed its outlook for a profit of $4.98 to $5.13 per share in 2023.
Perella Weinberg Partners LP and Morgan Stanley (NYSE:MS) are the financial advisers to Altria.
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2年前
Altria Group, Inc. (MO) Shares Acquired by Edge Capital Group LLC
By: MarketBeat | February 10, 2023
• Edge Capital Group LLC lifted its position in shares of Altria Group, Inc. (NYSE:MO) by 37.5% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 13,386 shares of the company's stock after purchasing an additional 3,650 shares during the period. Edge Capital Group LLC's holdings in Altria Group were worth $541,000 as of its most recent SEC filing...
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2年前
CWA Asset Management Group LLC Boosts Position in Altria Group, Inc. (MO)
By: MarketBeat | February 8, 2023
• CWA Asset Management Group LLC boosted its position in shares of Altria Group, Inc. (NYSE:MO) by 9.1% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 307,862 shares of the company's stock after purchasing an additional 25,767 shares during the quarter. Altria Group makes up 1.2% of CWA Asset Management Group LLC's portfolio, making the stock its 21st biggest holding. CWA Asset Management Group LLC's holdings in Altria Group were worth $12,431,000 at the end of the most recent quarter...
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2年前
Earnings Preview: Altria Group Inc. (NYSE: MO)
By: 24/7 Wall St. | January 30, 2023
• Here are previews of four firms expected to post quarterly results first thing Wednesday morning.
Altria
The maker and U.S. distributor of Marlboro cigarettes, Altria Group Inc. (NYSE: MO), has managed to reverse a two-quarter decline in its share price, but the stock still trades down about 12.3% for the past 12 months. The company’s massive dividend makes up for a lot of sins, however, and the stock has outperformed the S&P 500 index for five straight years.
Last week, e-cigarette maker Juul was reported to be in talks with Altria, its sister company Philip Morris and Japan Group about an acquisition. Altria paid $12.8 billion in 2018 for a 35% stake in Juul and has since marked that down to a value of just $ billion. The SEC is trying to unwind the Juul acquisition, and the FDA has ordered the company to stop U.S. sales, but Juul was granted a stay pending its appeal. The short version of the story is that, in the near term, Altria looks good. In the longer term, maybe not so much.
Sentiment on Altria is positive but not strong. Of 18 analysts covering the stock, 10 have a Hold rating, while another six rate the shares at Buy or Strong Buy. At a recent price of around $44.00 a share, the implied gain based on a median price target of $49.50 is 12.5%. At the high price target of $68.00, the upside potential is about 54.5%.
Fourth-quarter revenue is forecast at $5.15 billion, which would be down 4.9% sequentially but up 1.2% year over year. Adjusted EPS are forecast to come in at $1.16, down 9.4% sequentially and 6.4% lower year over year. For the full 2022 fiscal year, Altria is expected to report EPS of $4.81, up about 4.4%, on sales of $20.77 billion, down about 1.6%.
Altria stock trades at about 9.2 times expected 2022 EPS, 8.8 times estimated 2023 earnings of $5.00 and 8.4 times estimated 2024 earnings of $5.24 per share. The stock’s 52-week trading range is $40.35 to $57.05, and Altria pays an annual dividend of $3.76 (yield of 8.52%). Total shareholder return over the past year is negative 5.1%.
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2年前
Altria Group to adapt to changes in U.S. nicotine landscape - BofA
By: Investing.com | January 19, 2023
Altria Group (NYSE:MO) was reiterated with a Buy rating and $49 per share price target by BofA analysts on Thursday.
The analysts explained that effective January 22, Altria's Philip Morris (NYSE:PM) USA division has announced a list price increase of 15c/per pack on Marlboro, its first increase of 2023, and follows a price boost of +15c in October 2022, July 2022, April 2022, and December 2021.
"Compared to year ago prices, Marlboro's list price increased by ~10%, driven by mgmt's desire to maintain profitability goals. Further, per pack prices for Benson & Hedges, Merit, Nat's, Parliament, and Virginia Slims have been lifted by 20c per pack in MO's latest round of price increases," the analysts said.
They added that Altria's price hikes are less aggressive than British American Tobacco (NYSE:BTI)'s recent U.S. cigarette pricing moves.
"While nicotine is an addictive product, we anticipate these more frequent pricing actions at a time of elevated inflation to drive combustible tobacco users to lower priced nicotine alternatives (oral, vapor and deep discount cigarettes) despite continued employment and wage growth for lower income consumers," wrote the analysts. "We would also note that price gap (Marlboro vs. the lowest effective brand) has widened to nearly 40% (39.8%) as of 3Q22, a level not seen since 2009."
The analysts went on to state that Altria has a "long history of adapting to changes in the U.S. nicotine landscape," and they expect this to continue. The company's shares have climbed 1% in Thursday's session.
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2年前
U.S. Capital Wealth Advisors LLC Cuts Holdings in Altria Group, Inc. (MO)
By: MarketBeat | January 14, 2023
• U.S. Capital Wealth Advisors LLC reduced its position in Altria Group, Inc. (NYSE:MO) by 14.3% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 197,340 shares of the company's stock after selling 32,892 shares during the quarter. U.S. Capital Wealth Advisors LLC's holdings in Altria Group were worth $7,969,000 as of its most recent filing with the Securities and Exchange Commission...
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2年前
Tobacco Stock Altria Group (MO) for Options Bulls to Light Up
By: Schaeffer's Investment Research | January 10, 2023
• Now looks like an opportune time to initiate a long position on MO
• Additional tailwinds could stem from an unwinding of pessimism
Bull flagging on the charts, tobacco stock Altria Group Inc (NYSE:MO) has found support at its 20-week moving average, which coincides with both its Covid low and its anchored VWAP (AVWAP). The shares are also breaking above their 20-day moving average, with support at the 45-strike peak put level. Any potential resistance from the peak call level will evaporate during the standard January expiration.
An unwinding of pessimism from the brokerage bunch could give MO a boost, too. Of the 18 analysts in coverage, 13 carry a “hold” or worse rating.
Similarly, options traders have been more bearish than usual, and an unwinding of this pessimism could add tailwinds. Data at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows MO sports a 50-day put/call volume ratio that ranks higher than 92% of annual readings.
Those looking to speculate with options can do so for a bargain right now. Altria Group stock's Schaeffer's Volatility Index (SVI) of 20% stands in the relatively low 24th percentile of readings from the past 12 months, meaning options traders are pricing in low volatility expectations at the moment. Our recommended call has a leverage ratio of 8.6, and will double on a 12% rise in the underlying shares.
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2年前
Altria Group, Inc. (MO) Short Interest Up 11.3% in November
By: MarketBeat | December 16, 2022
• Altria Group, Inc. (NYSE:MO - Get Rating) saw a significant increase in short interest during the month of November. As of November 30th, there was short interest totalling 16,580,000 shares, an increase of 11.3% from the November 15th total of 14,900,000 shares. Currently, 0.9% of the shares of the company are short sold. Based on an average daily trading volume, of 9,000,000 shares, the days-to-cover ratio is currently 1.8 days...
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2年前
Altria: There Are Good Reasons It Looks So Cheap
By: Vince Martin | November 2, 2022
• On its face, Altria stock looks like a steal, with a dividend yield nearly 9% and a single-digit P/E multiple
• The core smokeable products division continues to drive profit growth, making the valuation more attractive
• But management missteps and looming risks suggest caution — barring a big win in the smokeless space
It bears emphasizing up front: a dividend alone is no reason to buy Altria Group (NYSE:MO) stock. Dividend payments come out of the stock price, after all. And if the business is headed in the wrong direction, a payout of almost any size is not going to save the stock.
That lesson has been taught to investors over and over in recent years, in names like Kraft Heinz (NASDAQ:KHC) and General Electric (NYSE:GE). Even Altria itself is a cautionary tale. The stock’s dividend yield has been above 5% since late 2018. Yet, over the past five years, even including those dividends, shareholders have earned 1.84% — total.
That lackluster performance alone doesn’t mean MO will struggle going forward. Indeed, the company itself has suffered from self-inflicted wounds. Notably, Altria invested $12.8 billion in e-cigarette manufacturer Juul — and now values the stake at just $350 million. A much smaller stake in Cronos Group (NASDAQ:CRON) too failed to pay off.
Altria Group Weekly Chart.
Source: Investing.com
In fact, while Altria stock has gone nowhere, the underlying business actually has performed rather well. That combination of strong performance and attractive valuation metrics seems to make MO an easy buy here.
That doesn’t quite appear to be the case, however. Right now, Altria looks like a steal. Looking forward, the picture is much more cloudy.
The Smokeable Business
Altria’s strategy beyond cigarettes gets a lot of the press, but it’s still cigarettes that drive current profits. Through the first three quarters of 2022, Altria’s Smokeable Products segment accounted for 86% of the company’s adjusted profit. Nearly all of that comes from Marlboro, which represented 87% of segment volume.
Investors unfamiliar with Altria might be surprised to know that the smokeable products business has grown, particularly given the fact that MO stock has declined in recent years. In fact, based on year-to-date results, operating income in the segment should rise at about a 5% annualized rate over a seven-year period.
That profit growth has come despite the fact that volume has declined at a similar rate. Steadily higher pricing has offset the lower volume, and then some.
And so the clear risk at the moment is that an inflationary environment will lead smokers to quit — or at least to move to lower-priced, discount alternatives. It was that risk that led Morgan Stanley to downgrade Altria stock back in June. And Q3 earnings suggest the risk is real.
In Q3 alone, Marlboro’s market share declined by four-tenths of a percentage point. That’s nearly 1% of the total share achieved in the second quarter (an impressive 43%).
For Altria, the increased regulation around tobacco advertising has actually been a positive. Competitors can’t spend to take Marlboro’s dominant market share. Altria doesn’t have to spend to protect that share.
In that context, it’s not that big of a surprise that Altria’s profit margins have risen steadily higher. But the strategy of consistently increasing prices will have to end at some point. If that point arrives now, Altria earnings start to decline. That decline is precisely what is priced in at the moment.
Moving Beyond Cigarettes
Obviously, Altria management knows the cigarette business is in decline, and that prices can’t go higher forever. That’s why the company spent billions buying stakes in Juul and Cronos. It’s part of why it’s kept its stake in Anheuser Busch Inbev (EBR:ABI).
And the company isn’t giving up on its plans to diversify. Just last week, the company announced a joint venture with Japan Tobacco Inc (TYO:2914) to develop heated tobacco stick products.
Meanwhile, in e-vapor, Altria is terminating its non-compete clause with Juul, allowing it to go its own way in that market.
As Altria’s own chief executive officer put it on the third-quarter conference call, Altria is looking to “lead adult smokers to a smoke-free future.” But the transition is unlikely to be that easy. The JV with Japan Tobacco won’t have a product to even submit to the U.S. Food and Drug Administration until 2025.
Philip Morris International (NYSE:PM) now has the rights to IQOS heated tobacco in the U.S. Its potential acquisition of Swedish Match AB could add competition in nicotine pouches.
The transition to a “smoke-free future” means a transition away from Marlboro cigarettes, one of the most successful consumer products in human history. Under any circumstances, that kind of move is not going to be easy.
But given management missteps so far, and Altria’s inability to show leadership in non-cigarette categories, the transition looks particularly risky.
A high dividend and a low price-to-earnings multiple don’t fix that problem. Rather, they show how serious the market believes that problem is.
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2年前
Altria Inks New Deal On Heated Cigarettes As Sales Slide
By: Barchart | October 27, 2022
WASHINGTON (AP) — Marlboro-maker Altria has a new partner in its effort to bring a heat-not-burn cigarette to the U.S. market, one week after exiting a similar deal with its sister company, Philip Morris International.
Altria said Thursday it's launching a new venture with Japan Tobacco to commercialize cigarette alternatives developed by both companies for U.S. smokers. The partnership's first effort will be to win U.S. regulatory approval for Japan Tobacco's Ploom, a small handheld device that heats tobacco without burning it.
Altria, based in Richmond, Virginia, made the announcement as it reported third-quarter earnings that missed Wall Street estimates, with cigarette sales pressured by higher gas prices and inflation.
Company executives said Ploom and other heat-based products can appeal to smokers who “have not yet found a satisfying alternative to cigarettes,” including “millions of U.S. adult smokers who tried, but ultimately rejected, e-vapor products.”
The deal with Japan Tobacco comes after Altria said it will sell its rights to IQOS — currently the only heated tobacco product permitted in the U.S. — back to manufacturer Philip Morris International for $2.7 billion. Altria spun off Philip Morris into a separate international company in 2008.
IQOS has made inroads in Japan, Europe and other regions but has had minimal impact in the U.S. Under regulatory scrutiny, Altria and Philip Morris confined sales to specialty stores and kiosks in a handful of U.S. cities.
For years Altria has emphasized its efforts to shift its business away from cigarettes amid steady declines in smoking. The company's recent marketing and ads feature the tag line “moving beyond smoking.” But cigarettes still account for the vast majority of company sales and efforts to branch out into vaping and other alternatives have mostly flopped.
Altria pulled its own e-cigarettes off the market in 2018 after taking a nearly $13 billion stake in Juul, then the leader in the multibillion-dollar U.S. vaping space. But that investment has lost more than 95% of its value as Juul’s prospects have dimmed. That's recently given Altria the option to exit its non-compete agreement and relaunch or partner with other companies on e-cigarettes.
In June, U.S. regulators formally rejected Juul’s application to continue selling its e-cigarettes as a less-harmful alternative for adult smokers. Juul is appealing that decision. The company also faces thousands of personal injury and local government lawsuits alleging the company's high-nicotine products and flavors hooked teens on nicotine.
In the latest quarter Altria took another $100 million write down on its Juul investment.
The company reported net income and sales that were pressured by rising prices and tighter spending by smokers.
Altria said its third-quarter net income swung to $224 million, or 12 cents per share, after reporting a loss in the same period a year earlier.
Earnings, adjusted for non-recurring costs, were $1.28 per share, missing analyst expectations The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.31 per share.
The owner of Philip Morris USA, Altria posted revenue of $6.55 billion in the period. Its adjusted revenue fell 2% to $5.41 billion, also missing Street forecasts. Four analysts surveyed by Zacks expected $5.62 billion.
Altria narrowed its full-year earnings to the range of $4.81 to $4.89 per share.
Shares slipped about 2% before the opening bell Thursday.
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