Institutional Buys Fuel BTI's 1.21% Rally as Market Activity Ranks 433rd Amid Analyst Divergence

On August 29, 2025, British American Tobacco (BTI) rose 1.21% to $57.45, with a trading volume of $220 million, ranking 433rd in market activity. Institutional investor activity highlighted increased confidence, as Charles Schwab Investment Management Inc. boosted its stake by 16.8%, holding 186,084 shares valued at $7.7 million. Other firms, including Rosenberg Matthew Hamilton and Golden State Wealth Management LLC, also raised holdings by 87% and 100%, respectively, during the first quarter.

Analyst ratings remained mixed. Bank of America initiated a "Buy" rating, while Barclays reiterated an "Overweight" stance. Morgan Stanley maintained an "Underweight" rating with a $40 target price, contrasting with Jefferies’ "Buy" recommendation. The stock carries a "Moderate Buy" consensus and a 5.21% dividend yield, though its payout ratio of 64.68% suggests potential sustainability risks amid regulatory pressures in key markets.

Backtest data showed BTI outperformed the FTSE 100 over multiple periods: 67.83% vs. 12.41% year-to-date, 70.73% vs. 9.64% in one year, and 150.82% vs. 54.06% in five years. The stock’s beta of 0.38 indicates lower volatility compared to the broader market, aligning with its defensive sector profile.