Universal (NYSE:UVV) Hits New 1-Year Low - What's Next?

Key Points

• Universal shares hit a new 52-week low, trading as low as $43.25 and well below their 50-day and 200-day moving averages. The stock has a market capitalization of approximately $1.08 billion.
• Analyst sentiment is negative: Zacks Research downgraded the stock to “strong sell,” while MarketBeat reports a consensus rating of “Reduce.” Universal also missed quarterly estimates, reporting a loss of $0.18 per share versus expectations for $0.25 in earnings and revenue below forecasts.
• Universal declared a quarterly dividend of $0.83, equating to an annualized yield of about 7.7%; however, its payout ratio is an unusually high 431.17%. Institutional investors own roughly 81% of the company, while a director recently sold shares.

Universal Corporation (NYSE:UVV - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $43.25 and last traded at $43.22, with a volume of 89997 shares changing hands. The stock had previously closed at $44.14.

Analyst Upgrades and Downgrades

Several research firms have recently commented on UVV. Wall Street Zen upgraded Universal from a "sell" rating to a "hold" rating in a research report on Saturday, September 5th. Weiss Ratings lowered Universal from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, August 12th. Finally, Zacks Research cut Universal from a "hold" rating to a "strong sell" rating in a report on Tuesday, September 1st. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Universal has a consensus rating of "Reduce".

Universal Stock Performance

The company has a current ratio of 2.57, a quick ratio of 1.00 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $1.08 billion, a price-to-earnings ratio of 56.16, a price-to-earnings-growth ratio of 13.88 and a beta of 0.58. The stock's fifty day simple moving average is $48.29 and its 200-day simple moving average is $51.30.

Universal (NYSE:UVV - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.25 by ($0.43). The company had revenue of $523.78 million for the quarter, compared to analyst estimates of $587.00 million. Universal had a return on equity of 3.50% and a net margin of 0.67%. Analysts predict that Universal Corporation will post 3.18 EPS for the current year.

Universal Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Monday, October 12th will be paid a $0.83 dividend. The ex-dividend date is Friday, October 9th. This represents a $3.32 dividend on an annualized basis and a yield of 7.7%. Universal's payout ratio is currently 431.17%.

Insider Buying and Selling

In other Universal news, Director Lennart Freeman sold 1,782 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $49.82, for a total value of $88,779.24. Following the sale, the director directly owned 16,935 shares of the company's stock, valued at approximately $843,701.70. This represents a 9.52% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 2.20% of the stock is owned by company insiders.

Institutional Trading of Universal

Hedge funds and other institutional investors have recently bought and sold shares of the business. Sequoia Financial Advisors LLC purchased a new position in shares of Universal in the 2nd quarter valued at about $278,000. Engineers Gate Manager LP purchased a new stake in Universal during the second quarter worth approximately $284,000. Squarepoint Ops LLC boosted its holdings in Universal by 53.0% in the second quarter. Squarepoint Ops LLC now owns 23,201 shares of the company's stock valued at $1,210,000 after purchasing an additional 8,032 shares in the last quarter. iSAM Funds UK Ltd acquired a new position in Universal in the second quarter valued at approximately $219,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Universal by 18.0% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 23,690 shares of the company's stock valued at $1,236,000 after purchasing an additional 3,610 shares during the last quarter. 81.00% of the stock is currently owned by institutional investors and hedge funds.

About Universal

Universal Corporation NYSE: UVV is a global agricultural company that supplies processed tobacco leaf and related products to manufacturers of cigarettes, cigars, pipe tobacco, heated tobacco products and other tobacco products. The company purchases tobacco from growers, provides agronomic and technical support, and processes, blends, packs and stores leaf tobacco to meet customers' specifications.

Through its Universal Leaf Tobacco subsidiaries and affiliated operations, Universal serves tobacco markets across multiple regions, including North and South America, Europe, Africa and Asia.

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