By Timothy S. Donahue
Verdence Capital Advisors LLC has taken a new stake in British American Tobacco p.l.c. (NYSE:BTI), acquiring 30,896 shares worth around $1.46 million during the second quarter, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).
The move contributes to a broader trend of institutional buildup in the London-based tobacco company. Several major investors increased their holdings earlier this year, including Orbis Allan Gray Ltd., which boosted its stake by 20.4% to more than 12 million shares worth approximately $497 million, and GQG Partners LLC, which increased its holdings by nearly 60% to 9.6 million shares valued at $397 million.
Other notable investors include Newport Trust Company LLC, Northern Trust Corp, and Envestnet Asset Management Inc., which each modestly increased their holdings in the first quarter. Institutional and hedge fund ownership in BAT now stands at 16.16%.
British American Tobacco (BAT), which owns brands like Vuse, glo, and Camel, has received mixed reactions from analysts as it faces ongoing pressure in traditional tobacco markets and regulatory challenges for next-generation products. Jefferies Financial Group started coverage on the stock in July with a “buy” rating, while Morgan Stanley and Royal Bank of Canada have taken more cautious stances, rating the stock “underweight” and “underperform,” respectively.
According to MarketBeat, BAT currently holds a consensus rating of “Hold” and a price target of $51.00.
Shares of BTI closed at $50.79 on Tuesday, down 1.5%. The company has a market capitalization of $104.4 billion and trades at a price-to-earnings ratio of 10.4. Its stock has ranged between $34.17 and $59.29 over the past year.
Additionally, Concord Asset Management acquired a new position in BAT in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 5,436 shares of the company’s stock, valued at approximately $257,000.
US Bancorp DE also boosted its investment in BAT by 12.7% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 103,440 shares of the company’s stock after acquiring an additional 11,636 shares during the period. US Bancorp DE’s holdings in BAT were worth $4,896,000 as of its most recent filing with the SEC.
BAT continues to focus on its strategic shift toward reduced-risk products, which now make up more than 20% of group revenue. Analysts suggest that institutional investor activity could indicate renewed confidence in the company’s long-term transition plan despite short-term volatility.
