BTI British American Tobacco p.l.c.

British American Tobacco (BAT) is battling investor pessimism despite its high dividend yield and focus on new-generation products. The stock trades near 52-week lows, reflecting concerns over regulatory pressures, declining cigarette volumes, and the uncertain profitability of alternative products, prompting a debate among investors about whether it's a value trap or a long-term opportunity. The company continues to generate significant cash flow, funding dividends and strategic pivots towards non-combustible products like vapes and heated tobacco, with future performance hinging on successful execution and regulatory navigation.

Capricorn Fund Managers Ltd significantly reduced its stake in British American Tobacco p.l.c. (NYSE:BTI) during Q3, selling 70,000 shares and retaining 65,000 shares valued at $3.45 million. This divestment makes BTI its 27th largest holding, accounting for approximately 1.2% of the fund's holdings. Despite this sale, Wall Street analysts maintain a "Moderate Buy" consensus rating for BTI with a target price of $51.00.

Shares of British American Tobacco (LON:BATS) have moved above their 200-day moving average, trading as high as GBX 4,240.64 on Friday. The company has a current market capitalization of £91.66 billion and a P/E ratio of 30.26, with analysts showing a mixed sentiment resulting in a consensus "Hold" rating and an average price target of GBX 4,500.

British American Tobacco p.l.c. (LON:BATS) is nearing its ex-dividend date, with a payment of UK£0.6006 per share. However, the company's dividend sustainability is questionable as it distributed an unsustainably high 174% of its profit as dividends last year, despite covering dividends with free cash flow. Furthermore, a five-year decline in earnings per share at approximately 11% annually raises concerns about future dividend growth and overall attractiveness as a dividend stock.

British American Tobacco (BAT) announced that Julia Wheaton, linked to Chief Corporate Officer Kingsley Wheaton, sold 17,850 shares for approximately £754,500 on December 22, 2025. This transaction highlights ongoing insider-related dealings. Analysts currently rate BAT stock as a Buy with a £49.00 price target, and TipRanks’ AI Analyst, Spark, rates it as Outperform due to strong technical indicators and positive corporate events.

British American Tobacco (BAT) is concluding 2025 with an ongoing share buyback program that is reaching its scheduled close, alongside continuous dividend payouts to investors. The company recently repurchased 153,353 shares, signaling a reduction in its share count, and has declared an upcoming quarterly dividend. While BAT expects 2% revenue and profit growth for FY25, its 2026 guidance is cautious, anticipating performance at the lower end of its targets due to challenges like illicit competition in the U.S. vape market, though it continues to prioritize shareholder returns through buybacks and dividends.