Reynolds American, Inc. Just Recorded A Sigfniciant Bearish Options Activity

 Reynolds American, Inc. Just Recorded A Sigfniciant Bearish Options Activity

In today’s session Reynolds American, Inc. (RAI) recorded an unusually high (205) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2018 put, expecting serious RAI decrease. With 205 contracts traded and 3784 open interest for the Jan, 18 contract, it seems this is a quite bearish bet. The option with symbol: RAI180119P00045000 closed last at: $4.2 or 6.7% down. About 414,025 shares traded hands. Reynolds American, Inc. (NYSE:RAI) has declined 7.13% since March 11, 2016 and is downtrending. It has underperformed by 12.58% the S&P500.

Analysts await Reynolds American, Inc. (NYSE:RAI) to report earnings on October, 25. They expect $0.66 EPS, up 20.00% or $0.11 from last year’s $0.55 per share. RAI’s profit will be $949.31 million for 17.94 P/E if the $0.66 EPS becomes a reality. After $0.58 actual EPS reported by Reynolds American, Inc. for the previous quarter, Wall Street now forecasts 13.79% EPS growth.

Reynolds American, Inc. (NYSE:RAI) Ratings Coverage

Out of 13 analysts covering Reynolds American Inc. (NYSE:RAI), 7 rate it a “Buy”, 2 “Sell”, while 4 “Hold”. This means 54% are positive. $92 is the highest target while $44 is the lowest. The $52.60 average target is 11.06% above today’s ($47.36) stock price. Reynolds American Inc. has been the topic of 22 analyst reports since July 29, 2015 according to StockzIntelligence Inc. The stock has “Strong Buy” rating given by S&P Research on Wednesday, July 29. The company was downgraded on Friday, August 14 by Zacks. The firm earned “Buy” rating on Wednesday, September 21 by Jefferies. The firm has “Buy” rating by Zacks given on Thursday, September 17. Berenberg initiated Reynolds American, Inc. (NYSE:RAI) on Tuesday, June 14 with “Hold” rating. The firm earned “Equal-Weight” rating on Wednesday, October 28 by Morgan Stanley. The firm earned “Underperform” rating on Wednesday, October 21 by Credit Agricole. The rating was downgraded by Zacks to “Buy” on Friday, August 21. Goldman Sachs downgraded Reynolds American, Inc. (NYSE:RAI) rating on Wednesday, March 16. Goldman Sachs has “Buy” rating and $54 price target. The rating was downgraded by Goldman Sachs on Monday, September 12 to “Neutral”.

According to Zacks Investment Research, “Reynolds American Inc. is the parent company of R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company, Inc., Lane Limited and R.J. Reynolds Global Products, Inc. R.J. Reynolds Tobacco Company, the second- largest U.S. tobacco company, manufactures about one of every three cigarettes sold in the United States, including five of the nation’s 10 best-selling brands: Camel, Winston, KOOL, Salem and Doral. Santa Fe Natural Tobacco Company, Inc. manufactures Natural American Spirit cigarettes.”

Insitutional Activity: The institutional sentiment increased to 1.15 in Q2 2016. Its up 0.08, from 1.07 in 2016Q1. The ratio is positive, as 44 funds sold all Reynolds American, Inc. shares owned while 247 reduced positions. 55 funds bought stakes while 280 increased positions. They now own 644.47 million shares or 0.10% more from 643.79 million shares in 2016Q1.
Moors & Cabot Inc last reported 0.11% of its portfolio in the stock. Savant Capital Ltd Liability Corp holds 5,512 shares or 0.08% of its portfolio. Rothschild Asset Mngmt accumulated 9,284 shares or 0.01% of the stock. Private Ocean Ltd Liability Corp has 0.02% invested in the company for 600 shares. Cibc Asset Mgmt Incorporated last reported 200,592 shares in the company. Private Advisor Grp Limited Company has invested 0.15% of its portfolio in Reynolds American, Inc. (NYSE:RAI). Avalon Advisors Limited holds 1.11% of its portfolio in Reynolds American, Inc. (NYSE:RAI) for 532,301 shares. Prudential Plc has invested 0.15% of its portfolio in Reynolds American, Inc. (NYSE:RAI). Silvercrest Asset Grp Inc Limited Liability accumulated 25,351 shares or 0.02% of the stock. The Utah-based Utah Retirement Systems has invested 0.22% in Reynolds American, Inc. (NYSE:RAI). Capital Fund Sa reported 28,392 shares or 0.01% of all its holdings. Manchester Capital Mngmt last reported 0.03% of its portfolio in the stock. The Nebraska-based Ameritas Inv Partners has invested 0.07% in Reynolds American, Inc. (NYSE:RAI). Moreover, Fisher Asset Mgmt Ltd Liability Corp has 0% invested in Reynolds American, Inc. (NYSE:RAI) for 9,783 shares. Fincl Counselors accumulated 0.31% or 95,038 shares.

Insider Transactions: Since May 5, 2016, the stock had 0 insider purchases, and 3 sales for $37.24 million net activity. Shares for $5.28 million were sold by CAMERON SUSAN M. on Thursday, May 5. 5,000 shares were sold by WAJNERT THOMAS C, worth $249,120. British American Tobacco p.l.c. sold 660,385 shares worth $31.72 million.

Reynolds American Inc. is a holding company. The company has a market cap of $68.12 billion. The Company’s divisions are RJR Tobacco, Santa Fe and American Snuff. It has a 12.8 P/E ratio. The RJR Tobacco segment consists principally of the primary activities of R.

RAI Company Profile

Reynolds American Inc. (RAI), incorporated on January 2, 2004, is a holding company. The Company’s divisions are RJR Tobacco, Santa Fe and American Snuff. The RJR Tobacco segment consists principally of the primary activities of R. J. Reynolds Tobacco Company. The Santa Fe segment consists of the domestic activities of Santa Fe Natural Tobacco Company, Inc. (SFNTC). The American Snuff segment consists of the primary activities of American Snuff Company, LLC (American Snuff Co.). The Company’s operating subsidiaries include R. J. Reynolds Tobacco Company, SFNTC, American Snuff Co., R. J. Reynolds Vapor Company (RJR Vapor), Niconovum USA, Inc. and Niconovum AB.

More important recent Reynolds American, Inc. (NYSE:RAI) news were published by: Forbes.com which released: “Reynolds American Enters Oversold Territory” on October 05, 2016, also Fool.com published article titled: “Better Buy: Philip Morris International Inc. vs. Reynolds American, Inc.”, Bloomberg.com published: “Camel Smoker John Boehner Joins Board of Reynolds American” on September 15, 2016. More interesting news about Reynolds American, Inc. (NYSE:RAI) was released by: Fool.com and their article: “Better Buy: Altria Group Inc. vs. Reynolds American” with publication date: October 03, 2016.

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