Lantz Financial LLC significantly increased its investment in Philip Morris International Inc. (NYSE: PM) by 365.2% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the firm acquired an additional 11,588 shares, bringing its total holdings to 14,761 shares valued at approximately $2,394,000.
This increase in stake highlights a broader trend among institutional investors, with several firms adjusting their positions in Philip Morris. For instance, Legacy Investment Solutions LLC and Traub Capital Management LLC each initiated new positions in the company during the second quarter, each valued at around $25,000. Meanwhile, Marquette Asset Management LLC raised its holdings by an impressive 1,677.8%, now owning 160 shares worth about $26,000 after purchasing an additional 151 shares in the same period. Other notable investors include Estabrook Capital Management, which acquired shares worth around $30,000, and Briaud Financial Planning Inc., which lifted its stake by 266.7%.
As of now, institutional investors collectively own 78.63% of Philip Morris’s stock, indicating strong confidence in the company’s future performance.
Recent Performance and Analyst Ratings
Philip Morris International recently reported its quarterly earnings on February 6, 2024, revealing an earnings per share (EPS) of $1.70, which met analysts’ expectations. The company generated revenues of $10.36 billion, slightly below the anticipated $10.40 billion. Despite a net margin of 9.33% and a negative return on equity of 122.14%, Philip Morris’s revenue rose by 6.8% year over year. The previous year, the company posted an EPS of $1.55.
Looking ahead, Philip Morris has set its guidance for the first quarter of 2026 at an EPS range of $1.800-$1.850 and an annual forecast of $8.380-$8.530. Analysts are predicting an average EPS of $7.14 for the current fiscal year.
Dividend Announcement and Market Outlook
In addition to its earnings report, Philip Morris announced a quarterly dividend of $1.47 per share, paid on January 14, 2024. Stockholders on record as of December 26, 2023, received this payment, resulting in an annualized dividend of $5.88 and a yield of 3.2%. The company’s payout ratio currently stands at 106.52%, which may indicate a commitment to shareholder returns despite recent financial challenges.
Market analysts have issued mixed ratings regarding Philip Morris stock. Weiss Ratings maintains a “buy” rating, while Morgan Stanley has set a target price of $175.00 with an “overweight” recommendation. Conversely, Wall Street Zen downgraded the stock from “buy” to “hold,” reflecting varied investor sentiment. Overall, eleven research analysts rate the stock as a buy, while two suggest a hold, leading to a consensus rating of “Moderate Buy” with an average price target of $184.56.
Philip Morris International continues to navigate the evolving market landscape, focusing on both traditional tobacco products and its expanding portfolio of smoke-free alternatives. As the company adapts to changing consumer preferences, stakeholders will be watching its next moves closely.
