Philip Morris Shares Plunge 1.83% Amid Regulatory Pressures, Institutional Selloff

Philip Morris International's shares fell 1.83% on Thursday, extending their decline for the fourth consecutive session as the stock dropped to its lowest level since July 2025. The intraday decline reached 2.05%, with the cumulative four-day loss hitting 4.23%. This selloff reflects a confluence of technical, institutional, and regulatory pressures weighing on the tobacco giant.

Institutional investors have contributed to the downward momentum, with Burns Matteson Capital reducing its stake by 60.9%. The shift underscores growing skepticism about the company’s strategic direction amid heightened regulatory scrutiny. The U.S. Food and Drug Administration’s intensified oversight of smoke-free products has created uncertainty for Philip Morris’ pivot to next-generation alternatives, potentially delaying market access and limiting growth in this critical segment.

Financial performance has further fueled concerns. Recent quarterly results revealed a 1.5% year-over-year decline in cigarette shipment volume, despite an 11.8% growth in smoke-free product volume. The company has revised its full-year shipment guidance downward, now anticipating a 1% increase instead of the previously expected 2%, citing projected 2% declines in traditional cigarette sales. This adjustment highlights the ongoing challenges in transitioning from combustible to smoke-free products while maintaining revenue stability.

Bearish sentiment is also evident in options market activity, with a surge in demand for 180-strike put options. Traders are hedging against further declines, amplifying downward pressure as increased put buying triggers additional selling. However, analysts note a modest 0.5% upward revision in consensus earnings estimates over the past 30 days, reflecting cautious optimism about Philip Morris’ long-term cash flow generation and smoke-free innovation efforts.

The stock’s technical profile suggests potential for a near-term rebound, with the Relative Strength Index (27.52) indicating oversold conditions. Yet, the interplay of institutional skepticism, regulatory headwinds, and weak demand for traditional tobacco products remains a significant challenge. Investors will likely monitor the company’s ability to navigate these pressures while accelerating adoption of smoke-free alternatives to restore confidence in its strategic vision.