What’s Propelling Reynolds American, Inc. to Increase So Much?

 What's Propelling Reynolds American, Inc. to Increase So Much?

In today’s session Reynolds American, Inc. (RAI) registered an unusually high (1,806) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the December, 2016 call, expecting serious RAI increase. With 1,806 contracts traded and 7674 open interest for the Dec, 16 contract, it seems this is a quite bullish bet. The option with symbol: RAI161216C00055000 closed last at: $1.6 or 0% . About 1.13M shares traded hands. Reynolds American, Inc. (NYSE:RAI) has risen 7.84% since April 5, 2016 and is uptrending. It has outperformed by 5.89% the S&P500.

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

Out of 13 analysts covering Reynolds American Inc. (NYSE:RAI), 8 rate it a “Buy”, 2 “Sell”, while 3 “Hold”. This means 62% are positive. $92 is the highest target while $44 is the lowest. The $52.60 average target is -4.61% below today’s ($55.14) stock price. Reynolds American Inc. has been the topic of 24 analyst reports since July 29, 2015 according to StockzIntelligence Inc. Barclays Capital maintained it with “Overweight” rating and $48 target price in Wednesday, September 30 report. The firm has “Buy” rating given on Friday, August 21 by Zacks. The rating was initiated by Berenberg with “Hold” on Tuesday, June 14. The firm has “Buy” rating by Goldman Sachs given on Wednesday, March 16. The stock of Reynolds American, Inc. (NYSE:RAI) earned “Underperform” rating by CLSA on Wednesday, October 21. The rating was downgraded by Credit Agricole on Wednesday, October 21 to “Underperform”. The stock has “Buy” rating given by Zacks on Friday, August 14. The stock has “Outperform” rating given by RBC Capital Markets on Tuesday, November 3. As per Monday, October 24, the company rating was downgraded by CLSA. The stock of Reynolds American, Inc. (NYSE:RAI) earned “Equal-Weight” rating by Morgan Stanley on Wednesday, October 28.

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 2016 Q2. Its up 0.08, from 1.07 in 2016Q1. The ratio improved, 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.
Eulav Asset Management holds 241,000 shares or 0.71% of its portfolio. Pub Employees Retirement Association Of Colorado accumulated 184,286 shares or 0.08% of the stock. Manchester Cap Mngmt Ltd Co owns 3,434 shares or 0.03% of their US portfolio. Ionic Capital Limited Co holds 0.01% or 4,800 shares in its portfolio. Utah Retirement reported 151,150 shares or 0.22% of all its holdings. Capwealth Advsrs Limited Liability Co has invested 0.02% of its portfolio in Reynolds American, Inc. (NYSE:RAI). Waverton Investment Mngmt owns 1.14M shares or 4.61% of their US portfolio. Evercore Tru Com Na owns 8.86M shares or 1.53% of their US portfolio. Jane Street Grp Incorporated Ltd holds 32,265 shares or 0.01% of its portfolio. Savant Ltd holds 0.08% of its portfolio in Reynolds American, Inc. (NYSE:RAI) for 5,512 shares. Jefferies Ltd Limited Liability Company holds 66,539 shares or 0.02% of its portfolio. Veritable L P, a Pennsylvania-based fund reported 46,032 shares. New Jersey Better Educational Savings Tru holds 15,000 shares or 0.54% of its portfolio. Capital Fund Sa owns 28,392 shares or 0.01% of their US portfolio. Caxton Assoc L P last reported 20,000 shares in the company.

Insider Transactions: Since September 28, 2016, the stock had 0 buys, and 2 selling transactions for $32.31 million net activity. Shares for $31.72 million were sold by British American Tobacco p.l.c. on Wednesday, September 28. Crew Debra Ann had sold 10,818 shares worth $589,964 on Wednesday, October 26.

Reynolds American Inc. is a holding company. The company has a market cap of $79.46 billion. The Company’s divisions are RJR Tobacco, Santa Fe and American Snuff. It has a 14.34 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 notable recent Reynolds American, Inc. (NYSE:RAI) news were published by: Foxbusiness.com which released: “Why Reynolds American, Inc. Stock Jumped 17% in October” on November 06, 2016, also Journalnow.com with their article: “Reynolds American Inc. picks advisers to review offer” published on October 31, 2016, Fool.com published: “5 Great Reasons to Buy Reynolds American Inc.” on October 21, 2016. More interesting news about Reynolds American, Inc. (NYSE:RAI) were released by: Reuters.com and their article: “Fitch Places Reynolds American Inc. on Rating Watch Positive” published on October 21, 2016 as well as Wsj.com‘s news article titled: “Reynolds American CEO to Leave Role at Year’s End” with publication date: October 19, 2016.

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