British American Tobacco PLC stock trades under the ticker BTI & has shown recent bullishness that traders & investors should take a closer look at.
BTI stock closed at $42.41/share on 3/22/2022.
British American Tobacco PLC BTI Stock’s Technicals Broken Down
BTI Stock Price: $42.41
10 Day Moving Average: $40.98
50 Day Moving Average: $43.01
200 Day Moving Average: $37.58
RSI: 51.66
MACD: -0.533
BTI stock completed a bullish MACD crossover today, while approaching its 50 day moving average.
With a neutral RSI & ~2.5% separating BTI’s 10 & 50 day moving averages, there looks to be more positive momentum in the near-term.
They will need to test & break above the $42.85, $43.55 & $43.67 price levels in the meantime.
British American Tobacco PLC BTI Stock As A Long-Term Investment
Long-term oriented investors will find BTI stock’s valuation metrics appealing, with a P/E (ttm) of 10.23 & a P/B (mrq) of 1.03.
They recently reported Quarterly Earnings Growth Y-o-Y of 20.7%.
BTI stock’s balance sheet will require a closer review though, with Total Cash (mrq) of $3.26B & Total Debt (mrq) of $39.66B.
Moody’s most recent credit rating for BTI stock is Baa2, which is considered lower medium grade.
BTI stock pays a 5.15% dividend yield, which has a high payout ratio of 73.62%, which may indicate that it will not be sustainable in the long-run.
Only 6.52% of BTI stock’s outstanding share float is held by institutional investors.
British America Tobacco PLC BTI Stock As A Short-Term Trade Using Options
Short-term oriented traders can use options to profit from BTI stock’s price movements, while hedging against broader market volatility.
I am looking at the contracts with the 4/14 expiration date.
The $35, $40 & $45 call options all look appealing, although the $35’s are very illiquid & the $45’s only have 650 open contracts.
The $45 & $50 puts also look interesting, but are also highly illiquid, signaling that in the near-term the market sentiment for BTI stock is bullish.
Tying It All Together
Overall, BTI stock has many interesting characteristics that traders & investors will like.
Investors will like their valuation metrics & dividend, but will need to keep an eye out on how sustainable their yield is in the long-run.
Traders will like their current momentum, but may wish that there was more open interest at many of their strike prices.
BTI stock is worth taking a closer look at, regardless of your trading style.
*** I DO NOT OWN SHARES OF BTI STOCK ***