Reynolds American (RAI) rose 0.34% to close at $47.31 per share during the second week of September 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.34%, -6.5%, and 5.2%, respectively, as of September 16. RAI is trading 4.0% below its 20-day moving average, 5.5% below its 50-day moving average, and 2.8% below its 200-day moving average.
Related ETF and peers
The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 2.6% of its holdings in Reynolds American. The ETF tracks an equal-weighted index of large-cap US consumer staples stocks drawn from the S&P 500. The YTD price movement of RHS was 4.3% on September 16.
The market caps of Reynolds’ competitors are as follows:
Latest news on Reynolds American
John Boehner and Jean-Marc Levy have been appointed to the board of directors of Reynolds American as Class II directors, effective immediately.
The company also reported, “Boehner will serve on the board’s corporate governance, nominating and sustainability committee, and Levy will serve on the compensation and leadership development committee.”
Reynolds American’s performance in 2Q16
Reynolds American (RAI) reported 2Q16 net sales of $3.2 billion, a 33.3% rise over $2.4 billion in 2Q15. Sales for the RJR Tobacco, Santa Fe, and American Snuff segments rose 41.0%, 13.3%, and 6.4%, respectively, between 2Q15 and 2Q16. The company’s cost of products sold as a percentage of net sales and operating income fell 11.4% and 67.6%, respectively.
RAI’s net income and EPS (earnings per share) fell to $796.0 million and $0.56, respectively, in 2Q16, compared to $1.9 billion and $1.69, respectively, in 2Q15. It reported adjusted EPS of $0.58 in 2Q16, a rise of 13.7% over 2Q15.
Reynolds American’s cash and cash equivalents fell 25.3% between 4Q15 and 2Q16. Its debt-to-equity ratio fell to 1.4x in 2Q16 compared to 1.9x in 4Q15. The company has projected its adjusted EPS at $2.26–$2.34 for 2016. It has also approved a new $2.0 billion share repurchase program to be completed by the end of 2018.
Next, we’ll look at Clorox Company (CLX).