Stock Traders Purchase Large Volume of Altria Group Call Options (NYSE:MO)

Altria Group, Inc. (NYSE:MO) was the recipient of unusually large options trading on Thursday. Traders acquired 32,932 call options on the stock. This is an increase of approximately 40% compared to the average volume of 23,453 call options.

Wall Street Analysts Forecast Growth

MO has been the subject of several analyst reports. UBS Group raised their target price on shares of Altria Group from $63.00 to $67.00 and gave the company a “buy” rating in a research note on Monday, January 26th. Citigroup upped their price objective on Altria Group from $57.00 to $65.00 and gave the company a “neutral” rating in a research note on Monday. Argus raised Altria Group to a “hold” rating in a research report on Tuesday, January 13th. Finally, Stifel Nicolaus decreased their target price on Altria Group from $72.00 to $68.00 and set a “buy” rating on the stock in a report on Friday, January 30th. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $63.67.

Altria Group Stock Up 1.6%

Shares of MO stock opened at $66.98 on Friday. Altria Group has a 12-month low of $52.40 and a 12-month high of $68.60. The company has a market capitalization of $112.43 billion, a PE ratio of 16.30, a price-to-earnings-growth ratio of 3.63 and a beta of 0.47. The firm has a 50 day moving average price of $60.23 and a two-hundred day moving average price of $62.12.

Altria Group (NYSE:MO) last announced its earnings results on Thursday, January 29th. The company reported $1.30 earnings per share for the quarter, missing analysts’ consensus estimates of $1.32 by ($0.02). The firm had revenue of $5.08 billion for the quarter, compared to the consensus estimate of $5.02 billion. Altria Group had a negative return on equity of 287.61% and a net margin of 29.84%.Altria Group’s revenue for the quarter was down .5% on a year-over-year basis. During the same quarter last year, the business posted $1.30 EPS. As a group, research analysts expect that Altria Group will post 5.32 EPS for the current year.

Altria Group announced that its Board of Directors has authorized a stock repurchase program on Thursday, October 30th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to buy up to 1.9% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s leadership believes its shares are undervalued.

Altria Group Announces Dividend

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Darwin Wealth Management LLC bought a new position in Altria Group during the 2nd quarter worth $27,000. Navalign LLC bought a new stake in shares of Altria Group during the 4th quarter valued at $28,000. Country Trust Bank grew its holdings in shares of Altria Group by 400.0% during the 2nd quarter. Country Trust Bank now owns 500 shares of the company’s stock worth $29,000 after purchasing an additional 400 shares in the last quarter. EMC Capital Management bought a new position in shares of Altria Group in the third quarter worth $33,000. Finally, Creative Capital Management Investments LLC acquired a new position in Altria Group in the fourth quarter valued at about $29,000. Institutional investors and hedge funds own 57.41% of the company’s stock.

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.