At Current Price, Is It Too Late To Buy Altria Group, Inc. (MO)?

On Wednesday, shares of Altria Group, Inc. (NYSE:MO) marked $40.56 per share versus a previous $40.73 closing price. With having a -0.42% loss, an insight into the fundamental values of Altria Group, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. MO showed a fall of -17.88% within its YTD performance, with highs and lows between $39.30 – $66.04 during the period of 52 weeks, compared to the simple moving average of -19.02% in the period of the last 200 days.

Piper Jaffray equity researchers changed the status of Altria Group, Inc. (NYSE: MO) shares from “Overweight” to a “Neutral” rating in the report published on September 10th, 2019. Other analysts, including Morgan Stanley, also published their reports on MO shares. Morgan Stanley repeated the rating from the previous report, marking MO under “Equal-Weight” rating, in the report published on August 23rd, 2019. Additionally, MO shares got another “Buy” rating from Goldman, setting a target price of $59 on the company’s shares, according to the report published in July 12th, 2019. On the other hand, Citigroup Downgrade the “Sell” rating for MO shares, as published in the report on December 21st, 2018. Bernstein seems to be going bullish on the price of MO shares, based on the price prediction for MO. Another “Hold” rating came from Jefferies.

Altria Group, Inc. (MO) Analysis

The present dividend yield for MO owners is set at 0.08, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Altria Group, Inc., the company needs to provide a healthy cash flow, currently at the value of 88.50. In addition, the growth of sales from quarter to quarter is recording 5.00%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Altria Group, Inc. (MO) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 42.90% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 0.30 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while MO is currently recording an average of 10.45M in volumes. The volatility of the stock on monthly basis is set at 3.44%, while the weekly volatility levels are marked at 3.53%with -0.69% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $54.71, indicating growth from the present price of $40.56, which can represent yet another valuable research and analysis points that can help you decide whether to invest in MO or pass.

What to Look for When Analyzing Altria Group, Inc. Shares?

Altria Group, Inc. (MO) is based in the USA and it represents one of the well-known company operating with Consumer Goods sector. If you wish to compare MO shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 11.80 for Altria Group, Inc., while the value 9.02 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 3.44 is supported by the yearly ESP growth of 6.20%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.12%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 65.00% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in MO Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in MO in the recent period. That is how The Vanguard Group, Inc. now has an increase position in MO by 0.44% in the first quarter, owning 145.08 million shares of MO stocks, with the value of $6.35 billion after the purchase of an additional 639,427 shares during the last quarter. In the meanwhile, Capital Research & Management Co. also increased their stake in MO shares changed 9.89% in the first quarter, which means that the company now owns 74.64 million shares of company, all valued at $3.26 billion after the acquisition of additional 6,714,555 shares during the last quarter.

SSgA Funds Management, Inc. acquired a new position in Altria Group, Inc. during the first quarter, with the value of $3.24 billion, and Capital Research & Management Co. increased their stake in the company’s shares by 3.76% in the first quarter, now owning 905,471 shares valued at $1.09 billion after the acquisition of the additional 24.99 million shares during the last quarter. In the end, Northern Trust Investments, Inc. increased their position by 2.82% during the first quarter, now owning 21.91 million MO shares, now holding the value of $958.33 million in MO with the purchase of the additional 10,594 shares during the period of the last quarter. At the present, 65.00% of MO shares are in the ownership of institutional investors.