Philip Morris International Draws New Institutional Stakes and Analyst Coverage
Bahl & Gaynor initiated a $113.1 million position in Philip Morris International as JPMorgan began coverage, following strong quarterly earnings and an increased dividend payout.
Institutional investors have continued to adjust their stakes in Philip Morris International Inc. (NYSE:PM). Bahl & Gaynor LLC initiated a major new position in the firm during the third quarter, acquiring 592,898 shares valued at approximately $113,137,000, according to recent regulatory filings. Institutional investors and hedge funds collectively hold 78.63% of the tobacco company's outstanding shares.
Several other institutional managers also adjusted their holdings during the same period. Kinsale Capital Group Inc. lifted its position by 14.0% by purchasing 14,792 shares, bringing its total to 120,097 shares valued at $22,917,000. Elite Wealth Management Inc. boosted its holdings by 144.1% to 24,636 shares, and M Holdings Securities Inc. purchased a new position of 10,855 shares worth about $2,222,000. Conversely, Retirement Systems of Alabama reduced its investment by 3.9%, selling 30,469 shares while maintaining 757,760 shares valued at $144,596,000.
Wall Street analysts have also recently updated their views on the stock. JPMorgan Chase & Co. initiated coverage with a neutral rating and a price target of $200.00. Meanwhile, Stifel Nicolaus lifted its target price from $205.00 to $232.00 with a buy rating on Tuesday, November 3rd, and Needham & Company LLC raised its target to $220.00 on Thursday, October 22nd. According to MarketBeat, Philip Morris maintains an average consensus rating of Moderate Buy.
The institutional activity and analyst commentary follow the company's third-quarter financial results released on Wednesday, October 21st. Philip Morris reported quarterly earnings per share of $2.36, exceeding analyst expectations of $2.30. Revenue reached $11.44 billion, surpassing projected figures of $11.32 billion and reflecting a 5.5% increase compared to the same period in the prior year. The company recorded a net margin of 10.73% and a negative return on equity of 183.96%.
Shareholders also received an increased payout after the company boosted its quarterly dividend from $1.47 to $1.60 per share, distributed on Monday, October 26th. The raised payment reflects an annualized dividend of $6.40, with the company maintaining a dividend payout ratio of 93.43%. Equities analysts currently anticipate that Philip Morris will generate 8.32 earnings per share for the fiscal year.