Primecap Management Co. CA Makes New Investment in Philip Morris International Inc. $PM

Primecap Management Co. CA acquired a new stake in Philip Morris International Inc. (NYSE:PM) in the 2nd quarter, according to the company in its most recent filing with the SEC. The firm acquired 824,000 shares of the company’s stock, valued at approximately $149,070,000. Primecap Management Co. CA owned about 0.05% of Philip Morris International as of its most recent filing with the SEC.

Several other hedge funds have also recently modified their holdings of the company. GQG Partners LLC bought a new position in Philip Morris International in the 2nd quarter valued at $8,220,008,000. Capital International Investors raised its stake in shares of Philip Morris International by 13.7% during the 4th quarter. Capital International Investors now owns 101,377,875 shares of the company’s stock worth $16,262,967,000 after purchasing an additional 12,227,004 shares during the period. Capital Research Global Investors raised its stake in shares of Philip Morris International by 25.3% during the 4th quarter. Capital Research Global Investors now owns 54,559,706 shares of the company’s stock worth $8,751,407,000 after purchasing an additional 11,013,173 shares during the period. Legal & General Group Plc purchased a new position in shares of Philip Morris International in the 2nd quarter worth about $1,316,151,000. Finally, Capital World Investors grew its position in Philip Morris International by 2.8% during the fourth quarter. Capital World Investors now owns 132,355,726 shares of the company’s stock valued at $21,230,315,000 after buying an additional 3,579,399 shares during the period. Institutional investors own 78.63% of the company’s stock.

Key Philip Morris International News

Here are the key news stories impacting Philip Morris International this week:

• Positive Sentiment: FDA authorization strengthens ZYN growth prospects. The FDA authorized 11 ZYN ULTRA nicotine-pouch products, expanding PM’s U.S. smoke-free portfolio and supporting its longer-term shift away from combustible tobacco. Smoke-free products, led by ZYN and IQOS, now account for more than 41% of revenue, offering a potential multiyear growth runway. Philip Morris’ ZYN ULTRA FDA Authorization Strengthens Smoke-Free Push
• Positive Sentiment: Manufacturing agreements with Altria may improve efficiency. PM and Altria entered reciprocal contract-manufacturing arrangements involving cigarette production. The agreements should increase operational flexibility and manufacturing efficiency, with initial shipments expected in 2027. The partnership may provide longer-term cost and supply-chain benefits for PM, despite limited near-term earnings impact. Altria and Philip Morris International Sign Contract Manufacturing Deals
• Positive Sentiment: Pricing power and shareholder returns remain supportive. PM’s portfolio spans IQOS, ZYN, VEEV One, and Marlboro, helping it maintain premium pricing amid uncertain economic conditions. Analysts highlight strong free cash flow, lower debt leverage, and the possibility of another dividend increase in September. Philip Morris: Big Tobacco With High-Growth Smoke-Free Assets
• Neutral Sentiment: Near-term financial impact from the Altria deal is expected to be limited. Both companies said the manufacturing arrangements are not expected to materially affect 2026 results, so investors may need to wait until 2027 for measurable benefits. Altria vs. Philip Morris: What the New Manufacturing Deal Means for Investors
• Negative Sentiment: Valuation leaves less room for disappointment. PM’s smoke-free growth and defensive cash flows have attracted a premium valuation, creating downside risk if product adoption, regulatory momentum, or earnings growth falls short of expectations.

Analyst Upgrades and Downgrades

PM has been the subject of a number of research analyst reports. Morgan Stanley raised their price objective on shares of Philip Morris International from $200.00 to $215.00 and gave the stock an “overweight” rating in a report on Thursday, July 23rd. Citigroup boosted their target price on shares of Philip Morris International from $210.00 to $225.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Weiss Ratings reissued a “buy (b)” rating on shares of Philip Morris International in a research report on Monday, August 17th. UBS Group raised their price target on shares of Philip Morris International from $168.00 to $182.00 and gave the stock a “neutral” rating in a research note on Thursday, July 2nd. Finally, Needham & Company LLC lifted their price target on shares of Philip Morris International from $200.00 to $215.00 and gave the stock a “buy” rating in a report on Thursday, July 23rd. Ten research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $205.89.

Philip Morris International Price Performance

Shares of PM stock opened at $194.00 on Wednesday. The stock has a market capitalization of $302.36 billion, a price-to-earnings ratio of 27.87, a PEG ratio of 2.31 and a beta of 0.38. The company’s fifty day simple moving average is $186.42 and its two-hundred day simple moving average is $178.55. Philip Morris International Inc. has a 1 year low of $142.11 and a 1 year high of $207.76.

Philip Morris International (NYSE:PM) last posted its quarterly earnings results on Wednesday, July 22nd. The company reported $2.20 EPS for the quarter, topping analysts’ consensus estimates of $2.05 by $0.15. The firm had revenue of $11.19 billion during the quarter, compared to analyst estimates of $10.60 billion. Philip Morris International had a negative return on equity of 163.41% and a net margin of 11.06%.The business’s revenue for the quarter was up 10.4% on a year-over-year basis. During the same period last year, the company earned $1.89 earnings per share. Philip Morris International has set its Q3 2026 guidance at 2.200-2.25 EPS. Equities research analysts anticipate that Philip Morris International Inc. will post 8.33 EPS for the current year.

Philip Morris International Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, July 20th. Shareholders of record on Thursday, June 25th were paid a $1.47 dividend. The ex-dividend date was Thursday, June 25th. This represents a $5.88 annualized dividend and a yield of 3.0%. Philip Morris International’s dividend payout ratio (DPR) is currently 84.48%.

Philip Morris International Profile

Philip Morris International Inc (NYSE: PM) is a global tobacco company that manufactures and sells cigarettes, other nicotine-containing products and a growing portfolio of smoke-free alternatives for adult smokers. The firm traces its corporate roots to the 19th century Philip Morris enterprise and was established as an independent, publicly traded company following a 2008 separation from what is now Altria. Since the spin-off, the company has focused on serving international markets outside the United States.

PMI’s product mix includes traditional combustible cigarettes as well as smoke-free offerings such as heated tobacco systems and other reduced-risk products.