TobaccoReporter logo

Tag: stocks

  • Tobacco Stocks Stumble as ‘PMI Results Weigh on Sector’

    Tobacco Stocks Stumble as ‘PMI Results Weigh on Sector’

    Tobacco and nicotine stocks slipped yesterday (October 24) as shares of Philip Morris International fell following the company’s third-quarter results. While the company reported stronger-than-expected earnings and revenue, investors reacted negatively to a modest increase in full-year profit guidance and concerns over slowing growth in its smoke-free division. PMI shares dipped around 3–4% after the announcement, according to MSN’s Seeking Alpha.

    The sentiment rippled across the sector, pulling down other major players, according to Seeking Alpha. British American Tobacco traded about 2% lower, Turning Point Brands dropped nearly 4%, and Greenlane Holdings fell more than 5%. Altria Group also edged down around 1.5% ahead of its own quarterly earnings report, expected next week.

    Analysts at Morgan Stanley and BofA Securities maintained their “buy” ratings on Philip Morris, emphasizing its strong growth potential in reduced-risk products such as Zyn nicotine pouches. However, market watchers noted that investor expectations remain high even as the industry faces regulatory scrutiny and shifting consumer trends. The broader tobacco sector continues to balance solid cash flow and dividend stability against slower growth and rising public health pressures.

  • Markets Stand Behind Tobacco

    Markets Stand Behind Tobacco

    Seeking Alpha, a crowd-sourced content service that publishes news on financial markets, said the prices of tobacco and smoking products in the U.S. rose 6.8% in January compared to a year ago on an unadjusted basis. Overall, core inflation was up 3.3% year-over-year during the month, which was slightly higher than the pace in December and above the expectations of analysts.

    On a month-to-month comparison, tobacco and smoking products were up 0.4% in January to mark the fifth month in a row of higher pricing for the broad category.

    Analysts have not moved off their position that Philip Morris International, Altria, Imperial Brands, and British American Tobacco could all see benefits under the Trump Administration.

    Seeking Alpha said, “UBS sees the Republican control of Congress as a slight positive for tobacco stocks. Analyst Faham Baig reminded investors that Republican control has historically been seen as a positive for U.S. tobacco, due to the likelihood of reduced regulation. On that note, the Office of Information and Regulatory Affairs at the OMB withdrew in January the menthol cigarette ban and the U.S. has pulled back from the World Health Organization.”

  • Wall Street Likes Big Tobacco

    Wall Street Likes Big Tobacco

    According to Seeking Alpha, a leading financial research firm, U.S.-listed tobacco companies had a successful year of returns in 2024. “The dividend aristocrats Philip Morris, British American Tobacco, and Altria Group rose between 24% and 27.9% last year, compared to S&P 500’s 23.3% gain during that period,” Seeking Alpha wrote.

    Seeking Alpha’s analysts and Wall Street opinions think 2025 will be equally positive for Big Tobacco.

    “On British American Tobacco, the bullishness of SA analysts crossed with one Sell, two Holds, and a Buy recommendation of sell-side analysts. Similarly, Altria Group got a resounding Buy from Seeking Alpha analysts compared to a wide spectrum of opinions on Wall Street.

  • Stock Buybacks Underway

    Stock Buybacks Underway

    Several large tobacco industry stalwarts have continued with stock buyback programs this week.

    British American Tobacco announced the repurchase of 134,079 ordinary shares at an average price of 2,904.6775 pence per share as part of its ongoing buyback program. This move is aimed at reducing the number of shares in circulation, potentially increasing the value of remaining shares and benefiting shareholders. Following the completion of this transaction, the company will have 2,208,154,745 shares outstanding, with 133,266,206 held in treasury, thereby impacting shareholders’ notifications under regulatory guidelines.

    Imperial Brands PLC announced the repurchase and cancellation of 152,276 of its ordinary shares as part of its GBP 1.25 billion share repurchase program. This transaction, executed through Morgan Stanley on the London Stock Exchange, aims to reduce the overall number of shares in circulation, potentially enhancing shareholder value by increasing earnings per share.