ALTRIA to Pay $438.5M to Settle Probe Over Juul Marketing

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The agreement between Juul and the state attorneys general will see the e-cigarette maker paying $438.5 million to settle a two-year probe into its marketing practices. In addition to the financial terms, the agreement will force Juul to comply with a series of strict injunctive terms limiting its marketing and sales practices. It is not yet clear how this settlement will affect ALTRIA($NYSE:MO)’s market and earnings in the long term. However, it is likely that the company will face increased scrutiny from regulators and the public over the marketing of its products. This could lead to ALTRIA making changes to its marketing strategy in order to avoid any further legal problems.

Market Price

On Tuesday, Altria stock opened at $45.2 and closed at $44.6, after the company announced it would pay $438.5 million to settle a probe into its marketing of Juul e-cigarettes. The company will also stop selling Juul products in the US market.

VI Analysis

A company’s fundamentals are a reflection of its long-term potential. The following analysis of Altria Group, Inc is made simple by the VI app. According to the VI Star Chart, Altria is strong in dividend, profitability, and weak in asset, growth. Altria has an intermediate health score of 6/10 with regard to its cashflows and debt, which suggests that the company might be able to safely ride out any crisis without the risk of bankruptcy. Altria is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. Dividend-paying companies are deemed less risky as they pursue growth at a sustainable rate.

Summary

The news of ALTRIA paying $438.5 million to settle a probe over Juul marketing has investors wondering if now is the time to invest in the company. Some are concerned that the settlement may be a sign that the company is not doing well, but others believe that it is a sign that the company is taking responsibility for its actions and is committed to making changes. Overall, the reaction to the news has been positive and investors seem to be confident in the future of ALTRIA.