Drucker Wealth 3.0 LLC has significantly increased its investment in Altria Group, Inc. (NYSE: MO) by 98.0% during the third quarter of 2023. This move was disclosed in the firm’s latest filing with the Securities and Exchange Commission. Following this acquisition, Drucker Wealth now holds 28,925 shares of Altria, valued at approximately $1.9 million.
The surge in Drucker Wealth’s holdings reflects broader trends among institutional investors. Ameriprise Financial Inc. raised its stake in Altria Group by 62.5% in the second quarter, acquiring an additional 6,302,819 shares for a total of 16,395,070 shares valued at $954.4 million. Meanwhile, Vanguard Group Inc. increased its holdings by 1.0%, now owning 159,717,148 shares worth $9.36 billion after adding 1,599,923 shares.
Further notable increases came from Marshall Wace LLP, which boosted its stake by an astounding 1,094.0%, now holding 1,158,437 shares valued at $67.9 million. State Street Corp. and JPMorgan Chase & Co. also reported increases, with State Street acquiring 886,583 shares, bringing its total to 72,367,263 shares valued at $4.32 billion. JPMorgan increased its share count by 814,665 shares, now owning 12,073,682 shares valued at $797.6 million. Collectively, institutional investors now own 57.41% of Altria Group’s stock.
Market Performance and Dividend Announcements
On the trading front, Altria Group’s stock has experienced a 1.1% decline, opening at $66.54 on a recent Wednesday. The company currently has a market capitalization of $111.7 billion and a price-to-earnings (P/E) ratio of 16.19. Over the past year, the stock has fluctuated between a low of $52.46 and a high of $68.60.
Altria also announced a quarterly dividend of $1.06 per share, which was paid on January 9, 2024, to investors of record as of December 26, 2023. This dividend represents an annualized payout of $4.24, yielding 6.4%. The company’s payout ratio stands at 103.16%, indicating a high proportion of earnings distributed as dividends.
In a strategic move, Altria’s board authorized a stock repurchase program on October 30, 2023, allowing for the repurchase of up to $2 billion in outstanding shares. This program enables the company to reacquire approximately 1.9% of its stock through open market purchases, often interpreted as a signal that the management perceives the stock as undervalued.
Analyst Ratings and Future Outlook
Several research firms have recently issued updates on Altria Group. Citigroup raised its price target from $57.00 to $65.00 while maintaining a “neutral” rating on February 9, 2024. Argus upgraded the stock to a “hold” rating on January 13, 2024. Meanwhile, Stifel Nicolaus adjusted its price objective from $72.00 to $68.00, maintaining a “buy” rating on January 30, 2024. UBS Group also raised its target price from $63.00 to $67.00 and assigned a “buy” rating on January 26, 2024.
Currently, the consensus among analysts indicates a mixed outlook, with five rating the stock as a “buy,” five as a “hold,” and two suggesting a “sell.” The average target price is reported at $63.67 according to data from MarketBeat.com.
Altria Group, Inc., headquartered in Richmond, Virginia, is primarily engaged in the manufacture and sale of tobacco products. Its operations are heavily focused on the U.S. market, producing and distributing well-known cigarette brands through its subsidiaries. As ongoing market fluctuations and regulatory changes continue to shape the tobacco industry, Altria’s strategic decisions and investor sentiment will play a critical role in its future performance.
