Philip Morris Slides to 79th in Liquidity Amid Smoke-Free Shifts and Volatility Shares Dip 066%

On August 1, 2025, Philip Morris International (PM) saw a trading volume of $1.25 billion, a 28.15% drop from the prior day, placing it 79th in liquidity. The stock closed down 0.66%, reflecting mixed investor sentiment amid recent developments. Analysts have highlighted the company’s pivot toward smoke-free products like IQOS and ZYN as a key growth driver, though challenges in traditional cigarette sales and ZYN’s underperformance continue to weigh on expectations.

UBS raised PM’s price target to $181 from $170 on July 14, citing improved margins in smoke-free offerings, while maintaining a “neutral” rating. This follows a Q2 earnings beat, where adjusted EPS reached $1.91, surpassing estimates, though revenue fell short due to lower-than-expected ZYN sales. The company revised its full-year guidance upward, signaling confidence in its transition strategy despite softness in legacy markets.

Analyst coverage remains cautiously optimistic, with Jefferies and Morgan Stanley assigning “buy” ratings and higher price targets. However, recent volatility, including a 10.4% decline over four weeks, has drawn attention to oversold technical indicators and revised earnings estimates. Institutional investors, including Empirical Wealth Management and GAMMA Investing, have significantly increased stakes in PM, reflecting long-term positioning in its evolving product portfolio.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day returned 166.71% from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly in volatile markets, though risks from abrupt market shifts remain a concern.