The stock fell 6.9% to $44.97 a share at the close of trading after analysts downgraded the stock to underweight from equalweight, and cut their price target to $45 from $54. The new price target is roughly 0.3% above the stock's current level.
Altria took a 35% stake in Juul in December, investing $12 billion into the business, valuing the company at $38 billion. Altria wants to get into the e-cigarette business as smokers turn away from traditional cigarettes and into less harmful options. Juul has roughly 75% of the e-cigarette market. Several analysts have warned the valuation is too rich, and have downgraded their ratings on Altrias shares.
Citigroup downgraded Altria in December to sell from neutral and lowered its price target to $45 from $47. Independent Research also downgraded Altria to sell from hold and cut its price target to $47 from $59. Analysts at Stifel trimmed their price target to $59 from $70.
The $85 billion tobacco company has declined 36% in the past year. It's down 41% from its all-tine high reached in June 2017.