Tobacco giant Altria Group’s (NYSE:MO) shares ended in the red on Friday after seventh straight sessions of gains. The stock closed 0.01% lower at $67.67.
The Marlboro maker’s shares gained over 3% in the preceding six sessions. On a year-to-date basis, they have gained 31.12%, outpacing the broader market, which rose by 8.31%.
Looking at Seeking Alpha’s quant rating, MO has a Hold rating with a score of 3.43 out of 5. The company has been graded A+ for profitability but is dragged down by a D grade for growth. Wall Street analysts also echo similar sentiments and have issued a Hold call for the stock.
However, Seeking Alpha analysts have issued a Buy call for Altria with 13 analysts rating it Buy and above. Six analysts suggested to Hold, while 1 issued a Sell call.
The company declared a quarterly dividend of $1.06/share on Thursday, representing a 3.9% increase from the prior dividend of $1.02.
Seeking Alpha analyst Dividend and Value Investor suggested to Hold the stock “despite what looks like an irrationally exuberant stock price from a historical perspective”. The analyst’s view on the stock was supported by MO’s robust dividends and capital gains, even amid persistent and steep declines in cigarette volumes.
“Altria, like its competitors, has turned into an extremely solid investment. Patient investors have been rewarded not only with solid cash returns but also, most recently, with significant capital gains, resulting in overall performance well above the market average,” it said.
Another analyst, The Dividend Collectuh, maintained its Buy call on the company last week, arguing that its strong balance sheet, ongoing deleveraging, and prospects of a dividend hike enhance its investment appeal and potential upside.
“Despite macro uncertainty, continued traditional cigarette declines, and regulatory risks, Altria has been one of the best performing stocks in my portfolio, and in the market over the past year,” the analyst said.