Reynolds American Inc. (NYSE:RAI) registered a 0.55% increase, still its new closing price is 34.82% up from the company’s 1 year high of 58.15.It posted 3.92% gains in previous 5 sessions and is now the subject of 4 analysts who together assign a hold rating on stock. 1 of Wall Street analysts have an underperform rating; the 0 sells versus 3 buy or better ratings. The 11 stock analysts following this company have an average price target at $55.41, with individual PT in the $49.00-$62.00 range. The shares moved at $58.00, implying that brokerage firms see shares gaining about 27.85% in twelve months time.
Reynolds American Inc. (RAI) SEC Form 4 News
The stock is getting much attention these days as insiders are offloading shares while they posted a 3.50% rise year to date. A President & CEO-Elect at Reynolds American Inc. (RAI) offloaded shares in a transaction closed on Wednesday October 26, 2016. Crew Debra Ann sold 10,818 shares in the company at $54.54 each and collected $590,000 in proceeds. Crew Debra Ann now owns 41,835 shares in the company after this transaction. A 10% Owner in the company, British American Tobacco p.l.c, disclosed a transaction on Wednesday September 28, 2016 that ended up generating $31,718,000 from the sale of 660,385 shares at $48.03 per share.
Reynolds American Inc. (NYSE:RAI) Upcoming Results on Tap
Reynolds American Inc. will next provide financial results for the March 2017 quarter. Stock analysts expect it to report per-share earnings of $0.65 in that period. Sales during the quarter are predicted to arrive at $3.04 billion.
Earnings surprise history: Last quarter, the company posted approximately $3.21 billion in revenue and EPS of $0.61. The mean forecast was for $3.31 billion and $0.64 a share, respectively. One quarter earlier, revenue for the stock was at $3.2 billion, with earnings at $0.58/share.
Reynolds American Inc. (RAI) Brokerage Update
Reynolds American Inc. (RAI) is in Citigroup’s research list so their analyst rating change is noteworthy. These shares were downgraded to Neutral from Buy by Citigroup, according to news reported on Wednesday January 18, 2017.Another important research note was issued by CLSA on Monday October 24, 2016.The firm downgraded RAI to Underperform from Outperform. Over the last six months and over the last three months, the shares of Reynolds American Inc. (RAI), have changed 12.27% and 23.78%, respectively.
Reynolds American Inc. (NYSE:RAI) on January 17, 2017 announced that it has reached an agreement with British American Tobacco p.l.c. (BATS.L) under which BAT will acquire the 57.8% of RAI common stock that BAT does not currently own for $29.44 per share in cash and a number of BAT American Depositary Shares representing 0.5260 of a BAT ordinary share, currently worth $30.20 per share based on the BAT closing share price as of January 16, 2017, and the corresponding Dollar-Sterling exchange rate.
The per-share price represents a 26.4% premium to RAI’s closing price as of October 20, 2016, the day prior to BAT’s public proposal to acquire the outstanding shares that BAT does not currently own. Under the terms of the agreement, RAI shareholders will receive for each share of RAI common stock they own, $29.44 in cash and a number of BAT American Depositary Shares representing 0.5260 of a BAT ordinary share. The BAT American Depositary Shares will be listed on the New York Stock Exchange. RAI shareholders will own approximately 19% of the combined company.
The transaction has been approved by the independent directors of RAI who formed a transaction committee to negotiate with BAT, given BAT’s existing ownership stake and representation on RAI’s board of directors, and by the boards of directors of both companies.
Following the transaction, the combined companies become a stronger, truly global tobacco and Next Generation Products company, delivering sustained long-term profit growth and returns. It will maintain a presence in both profitable developed and high-growth developing markets while bringing together a compelling and complementary global portfolio of strong brands including Newport, Kent and Pall Mall. The companies’ combined next-generation product development and R&D capabilities will create an innovative pipeline of vapor and tobacco-heating products, delivering both an array of new product options for adult tobacco consumers, as well as diversified sources of profit growth opportunities for investors.