Market Update (NYSE:RAI): Advisory: RAI announces early results of cash tender offer

[PR Newswire] – WINSTON-SALEM, N.C., Feb. 19, 2016 /PRNewswire/ — Reynolds American Inc. (NYSE: RAI) has announced the following: “Reynolds American Inc. announces the early results of its cash tender offer for … Read more on this. Reynolds American Inc. (RAI) , valued at $70.57B, began trading this morning at $49.43. Today, shares have traded between $48.98 and $49.87 per share and has traded between $33.71 and $50.42 over the past 12 months. RAI shares are currently priced at 20.93x this year’s forecasted earnings, which makes them relatively expensive compared to the industry ’s 18.98x earnings multiple for the same period. And for those looking to make a return holding the stock , the company pays shareholders $1.44 per share annually in dividends, yielding 3.01%. Consensus earnings for the current quarter by the 8 sell-side analysts covering the stock is an estimate of $0.50 per share, which would be $0.07 better than the year-ago quarter and a $0.00 sequential decrease. Furthermore, our analysis shows the full-year EPS estimate to be $2.34, which would be a $0.36 better when compared to the last year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $2.91 Billion. If realized, that would be a 41.26% increase over the year-ago quarter. More recently, RBC Capital Mkts downgraded RAI from Top Pick to Outperform (Nov 3, 2015). Previously, Credit Agricole downgraded RAI from Outperform to Underperform. When considering if the stock is under or overvalued, the average price target is $54.13, which is 9.51% above where the stock opened this morning. See more in (NYSE:RAI) Similar Articles: Stock Update (NYSE:RAI): Advisory: Reynolds American Inc. announces expiration of registered Exchange Offers Market Update (NYSE:RAI): Advisory: RAI recommends shareholders reject TRC Capital ‘mini-tender’ offer Stock Update (NYSE:RAI): Advisory: Reynolds American Inc. announces executive changes at RAI and R.J. Reynolds Tobacco Company