Anheuser-Busch (NYSE:BUD) stock is in the news Thursday as investors react to news of tobacco company Altria (NYSE:MO) selling a portion of its stake in the beer manufacturer.
Altria has announced that it will be selling 35 million shares of BUD stock. This offering will also allow underwriters to acquire another 5.25 million shares within 30 days of the sale.
Altria notes that it intends to use the funds from this BUD stock offering to repurchase shares of its own stock. To go along with this, Anheuser-Busch has agreed to repurchase $200 million worth of BUD stock from MO.
Considering Altria is a 10% stakeholder in BUD with its 197 million shares, this news has some investors wondering if it will keep investing in Anheuser-Busch. Altria CEO Billy Gifford said the following about the news:
“Over the decades of our ownership, the beer investment has provided significant income and cash returns and supported our strong balance sheet. Our continued investment reflects ongoing confidence in ABI’s long-term strategies, premium global brands and experienced management team.”
How This Affects BUD Stock
BUD stockholders aren’t taking today’s news well with the stock falling 4.9% as of Thursday morning. That comes alongside more than 2.5 million shares changing hands. This is already above the company’s daily average trading volume of about 1.7 million shares.
Investors looking for even more of the most recent stock market stories will want to stick around!
We have all of the hottest stock market news traders need to know about on Thursday! Among that is what has shares of Fisker (NYSE:FSR), Spruce Biosciences (NASDAQ:SPRB) and Dollar Tree (NASDAQ:DLTR) stock moving today. All of that news is ready to go at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
