Institutional investors are exerting significant influence on the share price of Philip Morris International Inc (NYSE:PM)., with the top 14 institutional shareholders controlling 51% of the company's shares. Collectively, institutions hold a substantial 81% of the company's shares, which has led to notable impacts on its market performance.
Despite experiencing a recent dip in value by 3.8%, a one-year return of 0.4% has helped to assuage investor concerns. The investors, who benchmark their performance against an index and have a preference for large companies included in these indices, continue to maintain a positive outlook for Philip Morris. They foresee promising growth prospects for the tobacco company.
However, the risk of a substantial share price decline looms if two major institutional investors were to sell their shares simultaneously. This potential scenario underscores the importance of considering the company's past earnings trajectory and conducting comprehensive investment assessments to gauge potential risks and returns.
The considerable stake held by institutional investors in Philip Morris underlines their role in shaping the company's financial future. As such, any changes in their investment strategies could significantly impact the company's share price and overall market performance.
InvestingPro Insights
Based on real-time data from InvestingPro, Philip Morris International Inc. has a significant market capitalization of $139.03B. With a P/E ratio of 17.37, it suggests a fair valuation of the company. Looking at the past performance, the company has seen an 8.09% growth in revenue in the last twelve months as of Q3 2023. The company has also maintained an impressive gross profit margin of 63.58%.
Two key InvestingPro Tips that investors should consider are that Philip Morris has consistently raised its dividend for 15 consecutive years, indicating a strong commitment to returning capital to shareholders. Also, despite a declining trend in earnings per share, the company has managed to remain profitable over the last twelve months.
For more in-depth insights and tips, consider exploring the InvestingPro platform, which offers a wealth of information on various companies including Philip Morris International Inc.
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