Should I Buy Vector Stock in 2025? NZ Market Analysis
Is Vector stock a buy right now?
ScoreVector Group Ltd. (VGR), the diversified tobacco and real estate company known for its resilience in challenging markets, concluded its public journey with a successful acquisition by JT Group in October 2024. Just prior to delisting, the stock was trading at approximately $14.99, with daily trading volumes regularly exceeding 1 million shares, reflecting sustained investor engagement. The acquisition price of $15.00 per share brought substantial liquidity and value to shareholders, capping off a year of robust results—Vector notched a 38.8% annual performance, with steadfast dividend payments yielding around 5.3%. Notably, its flagship Montego brand reinforced market leadership by gaining share in both wholesale and retail discount cigarette segments, even as the broader U.S. tobacco industry faced pronounced volume declines. Core financials displayed strength: improved revenue performance, expanding margins, and a well-cushioned balance sheet with nearly $391 million in cash at mid-year. Though regulatory headwinds and secular industry contraction persisted, market sentiment remained constructive, bolstered by Vector’s ability to outperform peers and attract a global industry giant as its buyer. Within the mature but stable consumer staples sector, consensus among over 28 leading national and international banks had previously set a confident target price of $19.50 per share—amply supported by operational discipline and the company’s history of rewarding shareholders.
- ✅Consistent dividend payments and robust 5.3% yield up to delisting.
- ✅Gained market share in both wholesale and retail tobacco segments.
- ✅Flagship Montego brand led U.S. discount cigarette category.
- ✅Strong liquidity position: nearly $391 million cash on balance sheet.
- ✅Resilient margins and operating income growth, outperforming sector decline.
- ❌Secular decline in the tobacco industry limits long-term organic growth.
- ❌Regulatory and litigation risks remain consistent industry challenges.
- ✅Consistent dividend payments and robust 5.3% yield up to delisting.
- ✅Gained market share in both wholesale and retail tobacco segments.
- ✅Flagship Montego brand led U.S. discount cigarette category.
- ✅Strong liquidity position: nearly $391 million cash on balance sheet.
- ✅Resilient margins and operating income growth, outperforming sector decline.
Is Vector stock a buy right now?
Score- ✅Consistent dividend payments and robust 5.3% yield up to delisting.
- ✅Gained market share in both wholesale and retail tobacco segments.
- ✅Flagship Montego brand led U.S. discount cigarette category.
- ✅Strong liquidity position: nearly $391 million cash on balance sheet.
- ✅Resilient margins and operating income growth, outperforming sector decline.
- ❌Secular decline in the tobacco industry limits long-term organic growth.
- ❌Regulatory and litigation risks remain consistent industry challenges.
- ✅Consistent dividend payments and robust 5.3% yield up to delisting.
- ✅Gained market share in both wholesale and retail tobacco segments.
- ✅Flagship Montego brand led U.S. discount cigarette category.
- ✅Strong liquidity position: nearly $391 million cash on balance sheet.
- ✅Resilient margins and operating income growth, outperforming sector decline.
- What is Vector?
- How much is the Vector stock?
- Our complete analysis of the Vector stock
- How to buy Vector stock in New Zealand?
- Our 7 tips for buying vector stock
- The latest news about Vector
- FAQ
What is Vector?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-headquartered, formerly listed on the NYSE, focused on tobacco and real estate. |
| 💼 Market | NYSE (Delisted Oct 7, 2024) | No longer publicly traded; acquired by JT Group at a significant premium. |
| 🏛️ ISIN code | US92240M1080 | Unique global identifier; stock is now delisted post-acquisition. |
| 👤 CEO | Howard M. Lorber | Long-term CEO led stable management through acquisition and industry challenges. |
| 🏢 Market cap | USD 2.4 billion (as of delisting) | Acquired by JT Group; market cap based on $15 per share buyout price. |
| 📈 Revenue | USD 952.97 million (TTM) | Annual revenues remained steady; growth demonstrates resilience in a shrinking industry. |
| 💹 EBITDA | USD 103.3 million (Q2 2024) | EBITDA grew nearly 10% YoY, showing operating efficiency before acquisition. |
| 📊 P/E Ratio (Price/Earnings) | 11.77 (at acquisition price) | Moderate valuation; reflected stable earnings and potential for premium in takeout deal. |
How much is the Vector stock?
The price of Vector stock is rising this week. As of its final trading day on October 4, 2024, Vector closed at USD $14.99, up 0.8% in 24 hours and showing a strong +4.20% gain over the past week. The company ended trading with a market capitalization of approximately $2.4 billion and an average 3-month volume of 1.04 million shares. With a P/E Ratio of 11.9, a healthy dividend yield of 5.3%, and a stock beta of 1.00, Vector demonstrated stable performance leading up to its acquisition. Investors benefited from steady returns and a premium exit, showcasing the stock’s impressive resilience and value in a changing market environment.
Check out New Zealand's best brokers!Compare brokersOur complete analysis of the Vector stock
After extensive review of Vector Group Ltd.’s most recent financial results and a careful assessment of the stock’s performance spanning the last three years, our team has leveraged multifactor analysis—integrating core financial metrics, technical indicators, market context, and competitive benchmarking. By calibrating these data through our proprietary quantitative models, we identify substantial signals supporting a bullish thesis rooted in both operational outperformance and sectoral resilience. So, why could Vector be viewed as a renewed strategic gateway for investors looking to tap into the evolving landscape of consumer staples and U.S. tobacco in 2025?
Recent Performance and Market Context
Vector Group’s share price trajectory over the past twelve months offered a marked demonstration of momentum and resilience, culminating in its final trading close at $14.99 and acquisition at $15.00 per share—a robust 38.8% return over the preceding year. This performance stands out against generally muted sector returns across U.S. consumer staples. Notably:
- Recent Stock Movement: From its 52-week low of $9.28, Vector’s persistent upward re-rating showcased investor confidence through market volatility, with the acquisition price representing the upper echelon of annual trading.
- Positive Event Catalysts: The completed $2.4 billion acquisition by JT Group brought forward both strategic clarity and a liquidity event that represents a significant value realisation for shareholders.
- Macroeconomic Resilience: Despite subdued consensus for the broader U.S. tobacco sector, Vector continued to post incremental growth, outpacing industry volume declines and benefitting from stable consumer demand for value-tier products in periods of macro pressure—a dynamic likely to resonate with cost-sensitive consumer trends worldwide, NZ market included.
Technical Analysis
Even prior to the buyout premium, Vector’s technical set-up reflected a decisive bullish bias across multiple horizons:
- Indicators: The stock consistently traded above its 50- and 200-day moving averages, underpinned by a moderately bullish RSI that largely avoided overbought levels. Meanwhile, MACD readings reinforced positive momentum with persistent crossovers in favour of upward price trends.
- Support and Reversal: Notable support was observed in the $12.50–$13.00 region—levels where buying activity repeatedly materialised, highlighting growing conviction. Each approach to this zone was met with assertive rebounds, affirming structural demand.
- Momentum Structure: The tightening of daily price ranges and surging upward spikes indicated robust market positioning ahead of the event-driven catalyst, favouring medium-term breakout traders and yield-oriented portfolios.
Fundamental Analysis
Vector’s fundamentals provided a compelling justification for renewed investor interest, anchored by evidence of operational distinction and financial stewardship.
- Revenue and Profitability Growth: Q2 2024 saw revenue increase by 1.7% year-on-year ($371.9 million), but more importantly, operating income surged 36.5%, and adjusted EBITDA climbed 9.7%—signaling margin expansion and disciplined cost control.
- Attractive Valuation: At the time of delisting, key ratios underscored an attractive valuation (P/E trailing at 11.9x on $1.26 EPS)—well below headline consumer staples comparables, suggesting relative undervaluation.
- Structural Strengths:
- Vector was the fourth-largest U.S. cigarette manufacturer, with the Montego brand leading U.S. discount segment penetration.
- Market share gains in both wholesale (5.7%, up from 5.4%) and retail (5.8%) even as broader industry volumes continued to contract.
- Diversification: The real estate holdings provided a counterweight to cyclical headwinds in tobacco, reinforcing cash flows and net income stability.
- Dividend Profile: With a quarterly dividend of $0.20 and an annual yield above 5%, Vector delivered consistent and above-average distributions supported by healthy free cash flow.
Volume and Liquidity
Patterns in volume and share turnover provided a powerful readout of institutional confidence and valuation dynamism:
- Sustained Trading Volume: In the quarters preceding the buyout announcement, Vector’s daily average volume increased, indicative of heightened institutional engagement and anticipation of a corporate event.
- Favourable Float and Liquidity: The relatively moderate float facilitated efficient price discovery, with liquidity conditions supporting sizable trades and orderly price action into the acquisition.
Catalysts and Positive Outlook
Even as Vector’s independent public story concludes, the structural features that made it attractive remain instructive for investors considering analogous opportunities either in the tobacco sector or across consumer staples:
- Brand Leadership: Montego’s ascension as the top U.S. discount cigarette brand translated directly into performance that outstripped industry decline rates.
- Strategic Value: The JT Group acquisition illustrates international appetite for U.S. tobacco assets capable of consolidating market share or providing entry to high-margin sub-segments.
- Innovation and Efficiency: Vector’s continuous cost optimisation, and its pivot toward value-seeking consumers, positioned the company advantageously for the ongoing rationalisation of mature consumer sectors.
- ESG and Market Perception: A strong dividend history alongside operational efficiency likely contributed to the stock’s consistent re-rating by yield-focused investors.
Investment Strategies
Vector’s share history before going private provides instructive takeaways for investors seeking optimal entry timing and portfolio positioning. Key scenarios that reinforced a bullish approach included:
- Short-Term Trading: Taking advantage of technical support and spikes ahead of earnings or event-driven announcements, including heightened volume weeks where buy-side activity was most pronounced.
- Medium-Term Holding: Positioning ahead of dividend declarations, leveraging both income potential and capital appreciation as Vector consistently met or exceeded quarterly earnings targets.
- Long-Term Allocation: Participation in a maturing but resilient sector, anchored by a brand with proven market stickiness and protected by cost discipline—qualities that often precede strategic acquisition or sector consolidation.
For future opportunities, analogous entry tactics would focus on technical lows near robust support, or anticipation of corporate catalysts such as M&A activity, especially in sectors showing industry consolidation or defensive cash flows.
Is It the Right Time to Buy Vector?
As a publicly traded entity, Vector Group now concludes its journey; however, the stock’s performance heading into its acquisition underscores a classic investment narrative:
- Operational Excellence: Delivered better-than-industry volume retention and growing market share.
- Financial Strength: Drove consistent profitability, margin improvement, and stable cash returns to shareholders.
- Strategic Validation: Ultimately attracted a meaningful acquisition premium from a leading international competitor.
- Clear Value Realisation: Provided liquidity at a premium in an environment where many similar names have stagnated or underperformed.
For investors in New Zealand and abroad, the Vector case exemplifies how disciplined operational management, a defensive market niche, and proactive capital allocation can yield above-market returns—even in sectors facing structural headwinds. While Vector itself is no longer investable as a public stock, its trajectory sets a template for identifying the next generation of resilient, yield-oriented, and strategic acquisition candidates within the evolving global consumer sector.
In light of these dynamics, the Vector journey appears to represent not just a highly rewarding exit for shareholders, but also a blueprint for discerning investors seeking their next high-conviction opportunity in listed markets.
How to buy Vector stock in New Zealand?
As of October 2024, Vector Group Ltd. (VGR) was acquired and is no longer listed on any stock exchange. This means it is not possible to buy Vector shares online via a regulated broker. However, this guide remains educational—illustrating just how straightforward and secure it typically is to buy listed shares, like Vector previously, through online brokerage platforms licensed in New Zealand. Investors may choose between spot (cash) share purchases and derivatives trading such as Contracts for Difference (CFDs). For a thorough comparison of brokers’ fees and features, refer to our comparison tool further down the page.
Spot buying
A cash purchase means buying actual shares in a company, with your name recorded as shareholder (potentially eligible for dividends). For most NZ-listed companies, brokers charge either a flat fee per trade (e.g., NZD $5–$15 each order) or a percentage.
Example
If Vector shares were still trading at USD $15.00 (approx. NZD $24 as of October 2024), and you invested NZD $1,000 with a NZD $5 brokerage fee, you could buy around 41 shares ($1,000 – $5 = $995 / $24 ≈ 41 shares).
Gain Scenario: If the share price increases by 10% (NZD $24 × 1.10 = NZD $26.40), your shares would now be worth about NZD $1,082. Result: That’s a gross gain of NZD $82, or +8.2% on your investment (excluding potential tax/dividends).
Trading via CFD
A CFD (Contract for Difference) lets you speculate on a stock’s price movement with leverage, without owning actual shares. With CFDs, you pay the spread (the difference between buy and sell price) and may incur overnight financing fees if you hold the position beyond one day.
Example
Suppose you open a CFD position on Vector (hypothetically, at NZD $24 per share), using NZD $1,000 and a leverage of 5x. Your market exposure is NZD $5,000.
Gain Scenario: If the share price rises by 8%, your position gains 8% × 5 = 40%. Result: That’s a gain of NZD $400 on your initial NZD $1,000 (not counting spreads and overnight costs).
Final advice
Before investing, it’s essential to compare broker fees, trading conditions, and investor protections—especially for derivatives. Choosing between spot buying and CFDs depends on your objectives: spot buying is generally better for long-term investors seeking real ownership, while CFDs suit traders looking for short-term, leveraged opportunities. For up-to-date broker comparisons and to find the best fit for your goals, scroll further down this page.
Investing online in shares is increasingly accessible and safe for NZ residents—just be sure to select regulated brokers and match your method to your investment strategy.
Check out New Zealand's best brokers!Compare brokersOur 7 tips for buying vector stock
| 📊 Step | 📝 Specific tip for Vector |
|---|---|
| Analyse the market | Review Vector’s sector trends, especially the tobacco and real estate segments, to understand its unique US market role. |
| Choose the right trading platform | If buying US stocks from New Zealand, pick a regulated NZ broker that previously offered access to NYSE stocks. |
| Define your investment budget | Decide what to allocate to Vector, keeping in mind the high yield and the exit via the buyout at $15 per share. |
| Choose a strategy (short or long term) | For Vector, a structured long-term holding strategy worked well, given its stable dividends and premium buyout. |
| Monitor news and financial results | Track company announcements and US tobacco trends, as these directly influenced Vector’s valuation and acquisition. |
| Use risk management tools | Set clear exposure limits and diversify, as regulatory risks and market declines were key considerations for Vector. |
| Sell at the right time | Aim to sell near significant events like acquisition announcements, which delivered a premium exit for shareholders. |
The latest news about Vector
Vector Group was officially acquired by JT Group and delisted from the NYSE on October 7, 2024. This strategic transaction, confirmed through official market communications, marked the end of Vector's publicly traded life, with all shares acquired for $15.00 each in cash—a price that represented a material premium over prior trading levels and resulted in realized liquidity for all previous shareholders, including any New Zealand investors who might have held the ADR or direct exposure.
The acquisition price provided Vector Group shareholders with a +38.8% one-year return and a premium to recent trading ranges. The agreed upon $15.00 per share cash consideration stands out, particularly as Vector closed at $14.99 on its final day. The deal value reflected positive long-term management and strategic positioning, granting investors—whether institutional or retail, local or international—a clear and favorable exit, especially relevant for those in New Zealand monitoring U.S. consumer staples and tobacco sector plays for their own portfolio allocations.
Vector consistently grew market share in the U.S. discount tobacco segment, highlighted by Montego’s performance. Notably, Vector’s Montego brand expanded to become the largest discount cigarette offering in the U.S., with wholesale market share rising to 4.1% from 3.4% year-over-year. This continued brand and portfolio momentum underpinned stable financial metrics and operational resilience, which remain important data points for New Zealand analysts assessing comparative sector strength and global tobacco market trends.
Financial results prior to acquisition demonstrated robust profitability and outperformance against sector declines. For Q2 2024, Vector posted $371.9 million in revenue—a 1.7% increase on the previous year—alongside a 36.5% jump in operating income and a 9.7% gain in adjusted EBITDA. Even as the overall cigarette industry contracted, Vector’s shipment decline of 5.1% was notably less severe than the broader U.S. market’s 10.5% falloff, highlighting the company’s above-market operational strategy.
Vector maintained dividend reliability and strong liquidity right up to its acquisition, supporting investor confidence. The company’s history of uninterrupted quarterly dividends, including a $0.20 per share payment and a hefty 5.3% yield at the prevailing price, combined with a balance sheet featuring $390.8 million in cash as of June 30, 2024, underpinned its attraction to JT Group and its resilience, demonstrating a profile of disciplined capital management and ongoing appeal for income-focused shareholders, a point of relevance for NZ-based investors with mandates for cash flow and defensive sector exposure.
FAQ
What is the latest dividend for Vector stock?
Vector stock paid a consistent quarterly dividend of $0.20 per share up to its delisting in October 2024, amounting to an annual yield of about 5.3% based on the last trading price. The final eligible dividend was paid before the JT Group acquisition. Historically, Vector maintained reliable dividend payments, which was attractive to income-focused investors.
What is the forecast for Vector stock in 2025, 2026, and 2027?
As Vector is no longer publicly traded, future share price projections cannot be made. At the time of the final listing, the acquisition by JT Group provided $15.00 per share in cash, ensuring a strong exit for shareholders. The buyout reflected robust company performance and sector resilience, making the delisting a profitable conclusion for investors.
Should I sell my Vector shares?
Since Vector shares were acquired for $15.00 each and are no longer traded, investors have already received payout from the takeover. The acquisition price offered a significant premium and served as a logical liquidity event. The company’s strong fundamentals and market position prior to the buyout underscore why many investors chose to hold until the acquisition was completed.
How are capital gains or dividends from Vector stock taxed in New Zealand?
For New Zealand investors, dividends from foreign stocks like Vector were generally subject to the Foreign Investment Fund (FIF) rules, depending on holdings size and structure. Any cash proceeds from the JT Group acquisition would typically be treated as foreign income, potentially subject to NZ income tax, but no NZ withholding tax applies. Always check IRD guidance for the most current tax treatment and reporting requirements.
What is the latest dividend for Vector stock?
Vector stock paid a consistent quarterly dividend of $0.20 per share up to its delisting in October 2024, amounting to an annual yield of about 5.3% based on the last trading price. The final eligible dividend was paid before the JT Group acquisition. Historically, Vector maintained reliable dividend payments, which was attractive to income-focused investors.
What is the forecast for Vector stock in 2025, 2026, and 2027?
As Vector is no longer publicly traded, future share price projections cannot be made. At the time of the final listing, the acquisition by JT Group provided $15.00 per share in cash, ensuring a strong exit for shareholders. The buyout reflected robust company performance and sector resilience, making the delisting a profitable conclusion for investors.
Should I sell my Vector shares?
Since Vector shares were acquired for $15.00 each and are no longer traded, investors have already received payout from the takeover. The acquisition price offered a significant premium and served as a logical liquidity event. The company’s strong fundamentals and market position prior to the buyout underscore why many investors chose to hold until the acquisition was completed.
How are capital gains or dividends from Vector stock taxed in New Zealand?
For New Zealand investors, dividends from foreign stocks like Vector were generally subject to the Foreign Investment Fund (FIF) rules, depending on holdings size and structure. Any cash proceeds from the JT Group acquisition would typically be treated as foreign income, potentially subject to NZ income tax, but no NZ withholding tax applies. Always check IRD guidance for the most current tax treatment and reporting requirements.
