Why Altria Stock Is Down More Than 8% Today

Altria Group Inc MO shares are trading lower Wednesday following reports the U.S. Food and Drug Administration is preparing to remove Juul e-cigarettes from the U.S. market.

According to a Wall Street Journal report, citing people familiar with the matter, the FDA could announce its decision on Juul e-cigarettes as soon as Wednesday. The potential ruling comes almost two years after Juul had applied for approval to keep selling e-cigarettes in the U.S. Altria owns a 35% stake in the e-cigarette company. 

In the first quarter, Altria reported a non-cash pre-tax unrealized loss of $100 million, or 5 cents per share, as a result of a decrease in the estimated fair value of its investment in Juul. At the end of the quarter, the estimated fair value of Altria's Juul investment was $1.6 billion.

See Also: So What's Going On With Moderna Shares Rising Today?

MO Price Action: Altria has traded between $57.05 and $42.53 over a 52-week period.

The stock was down 8.58% at $41.78 at press time, according to data from Benzinga Pro.

Photo: Vaping360 from Flickr.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsFDAMoversTrading Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!