Don’t Get Into Altria Group, Inc. (MO) For The Wrong Reasons

Looking into the technicals, Altria Group, Inc. (NYSE:MO) has scored 80% Sell indication. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the MO’s short-term trajectory should know that short terms indicators for the stock averaged 80% Sell with an average daily trading volume over the past 20 days at 13745000 shares. MO stock has overall a 0.5% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 11731116 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 9479532 shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $46.91. Below this, the next support is placed in the zone of $46.62. Till the time, the MO stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 30.51 on daily chart, which may remain a cause for comfort. If the price breaks below $46.62 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $47.71 mark may result into a pull-back move towards $48.22 level.

Altria Group, Inc. (MO) is projected to climb by 24.05 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $68price as 12-month high target. This represents a whopping 44.07 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $59.5, which represents a return potential of 26.06 percent when compared to the closing price of the stock of $47.2 on Wednesday, January 16. The lowest price target for the stock is $45 — slightly more than -4.66 percent from MO’s current share price.

Here’s a rundown of insider trading activity for sense of Altria Group, Inc. (NYSE:MO). The earliest insider trade took place on 08/29/2018. Devitre Dinyar S parted with a total of 3.17 thousand shares of company at average share price of $58.44. The total for the sales was set at $184.96 thousand. After this transaction, the Director account balance stood at 91.08 thousand shares. The stock lost -19.23 percent since that insider sale. On 04/30/2018, Newman Mark, Director, purchased 5.35 thousand shares at a price per share of $56.19. This added 300.34 thousand shares to the insider’s fortune and the stock saw a -16 percent retreat in value since the news became public. This transaction left 6.02 thousand shares in the Director account. On 03/02/2018, President & CEO, USSTC Quigley Brian W. performed a sale transaction worth $216.15 thousand. This sale at $62.4 each has eliminated 3.46 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -24.36 percent decrease since the transaction was reported. The insider now is left with 41.59 thousand shares remaining in the account. Surgner W Hildebrandt Jr, who performs the VP, Corp.Secy. & Assoc. GC job, sold 3.2 thousand shares for $199.49 thousand. The disposal occurred on 03/02/2018 was priced at $62.34 per share. The share price plunged -24.29 percent since the reporting date. Surgner W Hildebrandt Jr now left with a stake of 26.83 thousand MO stock worth $1.27 million after the insider selling.

MO shares dropped -0.71 points or -1.48 percent on Wednesday to $47.2 with a heavy trade volume of 13.616 million shares. After opening the session at $47.84, the shares went as high as $47.93 and as low as $47.13, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $88.6 billion and now has 1.88 billion shares outstanding. Altria Group, Inc. (MO) stock has lost -10.49 percent of market value in 21 trading days.

Analysts at Citigroup cut their rating on shares of Altria Group, Inc. (NYSE:MO) from Neutral to Sell in their opinion released on December 21. Analysts at Jefferies downgraded the stock to a Hold call from its previous Buy stance, in a research note that dated back to August 24.

MO stock has a trailing 3-year beta of 0.44, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.92 a share in the trailing twelve months. The stock’s value has fallen -4.43 percent year to date (YTD) against a decline of -31.51 percent in 12 month’s time. The company’s shares still trade -34.32 percent away from its 1-year high of $71.86 and 1.53 percent up from 52-week low of $46.49. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Altria Group, Inc. (MO) are trading at a P/E ratio of 8.25 times earnings reported for the past 12 months. The industry MO operates in has an average P/E of 30.07. Its P/E ratio went as low as 9.29X and as high as 21.82 over the 5-year span. Further, it is sporting a 3.5 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.93. 48.7 percent is the gross profit margin for Altria Group, Inc. and operating margin sits at 37.4 percent. Along with this, the net profit margin is 42.1 percent.

MO will be declaring its Q4 financial results on January 31. Analysts are forecasting revenue to climb 2.8 percent to $4.85B in the next fiscal quarter, while earnings are seen soaring by nearly 4.4 percent to $0.95 per share. History has shown that shares in Altria Group, Inc. have gone down on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $1.08 per share, better than the $1.07, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $5.29B, better than the $5.21B analysts expected. Earnings are estimated to increase by -51.1 percent this year, 7.21 percent next year and continue to increase by 8.4 percent annually for the next 5 years.