Cullen Capital Management LLC has decreased its stake in Altria Group, Inc. (NYSE:MO) by 9.2% during the second quarter of 2023, as detailed in a recent filing with the Securities and Exchange Commission (SEC). The firm now holds 2,617,603 shares, having sold 264,707 shares during this period. Altria represents about 1.7% of Cullen Capital’s portfolio, making it the firm’s 27th largest position. As of the latest SEC disclosure, Cullen Capital’s investment in Altria is valued at approximately $153.47 million.
Other institutional investors have also adjusted their positions in Altria recently. For example, Mattson Financial Services LLC acquired a new stake worth approximately $25,000 in the first quarter. Similarly, Global X Japan Co. Ltd. purchased shares valued at $25,000, while Carderock Capital Management Inc. and Darwin Wealth Management LLC made investments of $26,000 and $27,000 respectively during the second quarter. Furthermore, Country Trust Bank significantly increased its stake by 400%, now owning 500 shares valued at $29,000 after acquiring an additional 400 shares.
As for Altria’s market performance, shares opened at $58.76 on Monday, contributing to a market capitalization of $98.64 billion. The company has a price-to-earnings (P/E) ratio of 11.21 and a beta of 0.48. Over the past year, Altria’s stock has seen a low of $50.08 and a high of $68.60, with a 50-day moving average price of $60.48 and a 200-day moving average price of $61.76.
Altria recently announced its earnings results for the third quarter on October 30, 2023. The company reported earnings per share (EPS) of $1.45, slightly beating the consensus estimate of $1.44. Despite this positive earnings report, Altria’s revenue for the quarter was $5.25 billion, falling short of analysts’ expectations of $5.31 billion and reflecting a 3.0% decrease compared to the previous year. The firm also indicated a fiscal year 2025 guidance of $5.370 to $5.45 EPS.
In a significant move, Altria’s board authorized a stock buyback program on the same day as the earnings report, allowing for up to $2.00 billion in share repurchases. This buyback plan enables the company to purchase up to 1.9% of its stock through open market transactions, a strategic decision often interpreted as a sign that the board believes the shares are undervalued.
Additionally, Altria announced a quarterly dividend of $1.06 per share, set to be paid on January 9, 2024. Shareholders of record on December 26, 2023 will receive this dividend, which represents an annualized payout of $4.24 and a dividend yield of 7.2%. The company’s current dividend payout ratio stands at 80.92%.
Analysts have varied opinions on Altria’s stock. Recently, Weiss Ratings reaffirmed a “buy” rating, while UBS Group lowered its price target from $68.00 to $61.00, maintaining a “neutral” rating. Conversely, Bank of America increased its price objective from $64.00 to $72.00 and issued a “buy” rating. Overall, four analysts rate the stock as a buy, five as hold, and two as sell, with a consensus rating of “hold” and an average price target of $62.33 according to MarketBeat.com.
Altria Group, Inc., through its subsidiaries, is a major player in the manufacturing and sale of smokeable and oral tobacco products in the United States. The company’s product lineup includes cigarettes under the Marlboro brand, large cigars and pipe tobacco under the Black & Mild brand, and various smokeless tobacco products.