Will Philip Morris International Inc. (NYSE:PM) Stock be Affected by Hawaii’s Increased Smoking Age


With Hawaii becoming the first state in the country to increase the smoking age from 18 to 21 years old, many investors are beginning to wonder if they should be concerned with future performances of Philip Morris International Inc. (NYSE:PM) stock, as well as other tobacco companies.

The age increase in the state of Hawaii should not have any significant effect on Philip Morris International Inc. (NYSE:PM) revenues, but it usually just takes one state to change a law, for others to follow. What if we were to see a dozen other states follow suit? What if these states included New York, New Jersey, and California? This would certainly be a cause for concern among investors of Philip Morris International Inc. (NYSE:PM). For now though, we can probably expect a similar roller coaster ride for the stock in 2016 that we saw last year.

The stock is down 0.01% or $0.01 following the news, hitting $87.88 per share. Approximately 3.22 million shares traded hands. PM shares have risen 5.93% since June 2, 2015 and are currently uptrending. It has outperformed the S&P500 by 10.62%.

From a total of 3 analysts covering Philip Morris International (NYSE:PM) stock, 1 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $92.62 while the lowest target price is $80. The mean of all analyst targets is $87.72 which is -0.18% below today’s ($87.88) stock price. Philip Morris International was the topic of 7 analyst reports since August 24, 2015 according to the firm StockzIntelligence Inc. Nomura upgraded shares on November 30 to a “Neutral” rating.

The institutional sentiment increased to 0.98 in Q2 2015. It’s up 0.08, from 0.9 in 2015Q2. The ratio improved, as 64 funds sold all their Philip Morris International Inc. shares they owned while 496 reduced their positions. 73 funds bought stakes while 475 increased their total positions. Institutions now own 988.53 million shares which is 7.15% less than the previous share count of 1.06 billion in 2015Q2.

Cedar Rock Capital Ltd holds 25.66% of its total portfolio in Philip Morris International Inc., equating to 12.45 million shares. Destrier Capital Management Llc owns 561,000 shares representing 13.09% of their total US portfolio. Moreover, Troy Asset Management Ltd has 10.51% of their total portfolio invested in the company, equating to 2.17 million shares. The Ohio-based Csu Producer Resources Inc. has a total of 8.32% of their portfolio invested in the stock. Independent Franchise Partners Llp, a United Kingdom-based fund reported 8.04 million shares owned.

Since May 15, 2015, the stock had 0 insider purchases, and 1 sale for a total of $2.13 million in net activity. Calantzopoulos Andre sold 25,000 shares worth $2.13M. Camilleri Louis C sold 55,000 shares worth $4.63M.

Philip Morris International Inc. is a holding firm engaged in the manufacture and sale of cigarettes, other tobacco products and other nicotine-containing products in markets outside of the United States. The company has a market cap of $135.75 billion. The Company’s products are sold in more than 180 markets, which include a range of international and local, premium, mid-price and low-price brands. It has 18.89 P/E ratio. The Company’s premium price brands include Marlboro, Merit, Parliament and Virginia Slims; mid-price brands are L&M and Chesterfield, and international brands include Bond Street, Lark, Muratti, Next, Philip Morris and Red & White.