British American Tobacco PLC stock trades under the ticker BTI & has shown recent bullish behavior that traders & investors should take a closer look into.
BTI stock closed at $40.43/share on 8/11/2022.
British American Tobacco PLC BTI Stock’s Technical Performance Broken Down
BTI Stock Price: $40.43
10 Day Moving Average: $39.65
50 Day Moving Average: $41.46
200 Day Moving Average: $39.64
MACD: -0.449
RSI: 48.7
Yesterday, BTI stock completed a bullish MACD crossover, securing a fourth consecutive day of gains.
Their recent trading volumes have been lower than average compared to the year prior, and their RSI is still neutral, signaling uncertainty about their current valuation.
They have support at the $40.33 & $39.95/share price levels, as they try to break above the $41.07 & $41.55/share resistance levels.
British American Tobacco PLC BTI Stock As A Long-Term Investment
Long-term oriented investors will like BTI stock’s valuation metrics, with a 14.27 P/E (ttm) & a 0.98 P/B (mrq).
They recently reported 5.7% Quarterly Revenue Growth Y-o-Y, but investors should research further into their reported -42.8% Quarterly Earnings Growth Y-o-Y.
Their balance sheet will also require an additional examination, with a reported $4.14B of Total Cash (mrq) & $44.88B of Total Debt (mrq).
BTI stock pays a 5.43% dividend yield, which may have sustainability issues based on their payout ratio being 117.3%
6.9% of BTI stock’s outstanding share float is owned by institutional investors.
British American 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 also hedging against market volatility.
I am looking at the contracts with the 8/19 expiration date.
The $40, $35 & $30 call options are all in-the-money, listed from highest to lowest levels of open interest.
The $60, $55 & $50 puts are also all in-the-money, from most to least liquid strike price.
Tying It All Together
BTI stock has many interest characteristics that traders & investors will find appealing.
Investors will like their valuation metrics, but may want to research further into the makeup of their balance sheet, and how that will impact the sustainability of their dividend in the long-term.
Traders will like their recent technical performance, but may be disappointed by the liquidity of their options.
Overall, it is worth taking a closer look into BTI stock to see how it fits into your portfolio strategy.
*** I DO NOT OWN SHARES OF BTI STOCK AT THE TIME OF PUBLISHING THIS ARTICLE ***