Why Altria Stock Is Sinking Today

Core Viewpoint - Altria Group's stock is experiencing a significant decline following a negative rating from Jefferies, despite a generally positive market trend [1][3]. Group 1: Stock Performance - Altria's stock price fell by 4.1% as of 2:30 p.m. ET, with a maximum decline of 4.5% earlier in the trading session [1]. - Despite the current pullback, Altria's stock has increased approximately 24% over the past year [1]. Group 2: Analyst Coverage - Jefferies initiated coverage on Altria with an underperform rating and set a one-year price target of $50 per share, indicating a potential downside of about 12.5% [3]. - The lead analyst, Edward Mundy, believes that Altria's valuation has become stretched following its recent stock price increase [3]. Group 3: Market Trends - Altria is facing a potential secular decline in smokable tobacco products, with consistent declines in unit sales for cigarettes in recent years [4]. - The company has been able to offset some declines in cigarette unit volumes through price increases [4]. Group 4: Future Outlook - Altria is focusing on increasing demand for smoke-free products and has seen some recent successes in this area [5]. - The company's current valuation stands at approximately 10.6 times this year's expected earnings, with a dividend yield of around 7.2% [5].