Altria Group Stock Surpasses Analyst Target: What’s Next for Investors?
In recent trading, shares of Altria Group Inc (Symbol: MO) have crossed above the average analyst 12-month target price of $49.25, changing hands for $50.06/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation or re-adjust their target price to a higher level. Analyst reactions may also depend on the fundamental business developments responsible for driving the stock price higher — if business prospects appear positive, a target price increase might be warranted.
Analyzing Analyst Targets for Altria Group
Eight different analyst targets within the Zacks coverage universe contribute to the average for Altria Group Inc. While the average is useful, it represents a mathematical midpoint. Some analysts have lower targets, such as one predicting a price of $41.00, while another forecast reaches as high as $54.00. Notably, the standard deviation among these targets is $4.59.
What Crossing the Threshold Means for Investors
Investors generally seek to understand the concept of “wisdom of crowds,” which combines the insights of multiple analysts to achieve a more balanced perspective. Now that MO shares exceed the average target price of $49.25/share, investors have an important decision to make: Is this just a stepping stone to an even higher target, or is it time to consider taking some profits? Below is a table summarizing the current outlook from analysts covering Altria Group Inc:
| Recent MO Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 3 | 3 | 4 | 4 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 5 | 5 | 5 | 5 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 2 | 2 | 2 | 2 |
| Average rating: | 2.8 | 2.8 | 2.64 | 2.64 |
The average rating provided in the last row of the table is on a scale from 1 to 5, where 1 indicates Strong Buy and 5 signifies Strong Sell. This analysis utilized data from Zacks Investment Research via Quandl.com. For more details, you can access the latest Zacks research report on MO — FREE.
The Top 25 Broker Analyst Picks of the S&P 500 »
Also see:
• TINT YTD Return
• Funds Holding DOCS
• Institutional Holders of SAAS
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
