British American Tobacco gains institutional trust despite intraday stock dip
British American Tobacco (BAT) has seen significant institutional interest, with a substantial increase in shareholdings. The company has also initiated a share buyback programme, while CEO Tadeu Marroco has personally acquired more shares. Meanwhile, BAT's stock experienced a sharp intraday drop of nearly 2%, trading at 4,067p.
Institutional investors have been actively buying BAT shares, with Zions Bancorporation notably boosting its stake by a staggering 46,000%. Other investors have also been purchasing shares, indicating confidence in the company's prospects. BAT has responded by removing 110,000 shares from circulation through a share buyback programme, further demonstrating its commitment to shareholder value.
CEO Tadeu Marroco has personally acquired additional shares through a deferred bonus scheme, aligning his interests with those of other shareholders. Technical indicators suggest a potentially overbought condition, with the Relative Strength Index (RSI) at 73. However, BAT's debt-to-equity ratio of 0.68 indicates manageable debt levels, providing reassurance about the company's financial health. Institutional investors currently hold approximately 16.16% of BAT's shares.
Despite a recent intraday drop, BAT's stock has seen significant institutional interest and a vote of confidence from the company itself through share buybacks. With healthy profitability indicated by its return on capital employed (ROCE) of 11–14%, analysts maintain a cautious 'hold' consensus, with an average target range of 4,040p to 4,120p. While the Relative Strength Index suggests a potentially overbought condition, BAT's manageable debt levels provide reassurance about its financial position.
