Altria Group, Inc. (MO)

In the past six months, Altria Group's stock has experienced volatility. As of January 12, 2026, the share price had declined by 12.03% over the preceding 90 days, though it showed a 21.25% total shareholder return over the past year. UBS upgraded Altria Group from "Neutral" to "Buy" on January 12, 2026, citing expectations of easing cigarette volume pressures and improved industry volumes and earnings visibility for 2026. In the third quarter of 2025, Altria reported a 3.6% rise in adjusted earnings per share (EPS) to $1.45, with year-to-date EPS increasing by 5.9%. However, revenue in the same quarter came in lower than analyst expectations. The company's domestic cigarette shipment volumes declined by 8.2% in Q3 2025 and 10.6% over the first nine months of 2025, which has been a structural challenge. Competitive intensity within its smoke-free portfolio has also impacted investor sentiment. Despite these challenges, Altria recently increased its quarterly dividend by 3.9%.

Demand for Altria Group's products, particularly cigarettes, exhibits seasonality, influenced by factors such as weather, social behaviors, and cultural events. Smoking consumption tends to increase during winter months due to colder weather and the holiday season. As warmer weather arrives in the spring, there's often a shift in smoking habits with a focus on health and wellness. Social smoking typically peaks in the summer due to outdoor events, festivals, and vacations. The fall marks a transition period where smokers may consider lifestyle changes, with a slight decline in smoking rates observed. Additionally, tax increases can significantly influence monthly cigarette sales.

Altria Group, Inc. is a major player in the U.S. tobacco market with an extensive portfolio of smokeable and oral tobacco products. Its core business includes cigarettes, primarily under the Marlboro brand, which held a 42% market share in 2023. Other major cigarette brands include L&M, Philip Morris, Chesterfield, Lark, Benson and Hedges, Parliament, Virginia Slims, and Merit. The company also produces large cigars and pipe tobacco under brands like Black & Mild and John Middleton. In the smoke-free category, Altria offers moist smokeless tobacco products such as Copenhagen, Skoal, Red Seal, and Husky. The company has expanded into oral nicotine pouches with its "on!" brand and e-vapor products under the NJOY ACE brand. Additionally, Altria has a joint venture with JT Group for the U.S. marketing and commercialization of Ploom heated tobacco sticks. Beyond tobacco, Altria maintains minority stakes in AB InBev and Cronos Group.

Altria Group's primary operations are concentrated in the United States, where it manufactures and sells its products, with its corporate headquarters in Richmond, Virginia. While its main focus is the U.S. market, Altria also has a global presence through offices and facilities in other parts of North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa to support sales, marketing, distribution, and the exploration of new business opportunities.

Altria's brand reputation continues to be shaped by its strong traditional tobacco brands and its efforts in the evolving smoke-free product market, alongside ongoing regulatory scrutiny. The Marlboro brand remains a dominant force in the U.S. cigarette market. Altria emphasizes responsible marketing to adult consumers while aiming to limit reach to unintended audiences. Altria's past investment in JUUL Labs led to significant controversies and FDA scrutiny regarding youth vaping, ultimately resulting in Altria terminating its investment in JUUL in May 2023. In a strategic shift, Altria acquired NJOY Holdings Inc. in June 2023, an e-cigarette company with several FDA-approved products, signaling a renewed commitment to the e-vapor market. Despite this, Altria's NJOY ACE e-vapor product was removed from the market earlier in 2025 due to a patent dispute, leading to an $873 million goodwill impairment. The company is also reassessing its smoke-free targets due to the proliferation of illicit-flavored disposable e-vapor products. Historically, Altria was found guilty of civil fraud and racketeering in 2006 for misleading marketing of "light" and "low tar" cigarettes.

Altria Group, Inc. has a diverse ownership structure, with institutional investors holding a significant majority, typically ranging from 50% to 63% of the company's stock. Major institutional shareholders include Vanguard Group Inc, BlackRock, Inc., and State Street Corp. The general public holds a substantial portion of the stock, estimated between 36% and 42%. Insider ownership is less than 1%. The largest individual shareholder identified is Carlos Slim Helu, who owns 8.07 million shares, representing 0.48% of the company.