Universal (NYSE:UVV) Hits New 12-Month Low - Time to Sell?

Key Points

• Universal shares fell to a new 52-week low of $39.42, below their 50-day and 200-day moving averages, amid a consensus analyst rating of “Reduce.”
• The company’s latest quarterly results missed expectations, reporting a loss of $0.18 per share versus the projected $0.25 profit, while revenue of $523.78 million fell short of estimates.
• Universal declared a quarterly dividend of $0.83, implying an annualized yield of approximately 8.4%; however, its 431.17% payout ratio raises concerns about dividend sustainability.

Universal Corporation (NYSE:UVV - Get Free Report) shares reached a new 52-week low on Tuesday. The company traded as low as $39.42 and last traded at $39.4670, with a volume of 380,904 shares. The stock had previously closed at $40.67.

Analyst Ratings Changes

UVV has been the topic of several research analyst reports. Zacks Research upgraded Universal from a "strong sell" rating to a "hold" rating in a research report on Friday, October 9th. Wall Street Zen raised Universal from a "sell" rating to a "hold" rating in a research note on Saturday, September 5th. Finally, Weiss Ratings lowered Universal from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, October 8th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently 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's 50-day moving average price is $43.91 and its two-hundred day moving average price is $49.74. The company has a market cap of $982.73 million, a P/E ratio of 19.65, a price-to-earnings-growth ratio of 12.79 and a beta of 0.58.

Universal (NYSE:UVV - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.18) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.25 by ($0.43). Universal had a return on equity of 3.50% and a net margin of 0.67%. The business had revenue of $523.78 million during the quarter, compared to analyst estimates of $587.00 million. As a group, equities analysts forecast that Universal Corporation will post 3.18 earnings per share for the current year.

Universal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be issued a $0.83 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $3.32 annualized dividend and a dividend yield of 8.4%. Universal's dividend payout ratio is currently 431.17%.

Insider Activity

In other news, Director Lennart Freeman sold 1,782 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $49.82, for a total transaction of $88,779.24. Following the completion of the sale, the director owned 16,935 shares in the company, valued at approximately $843,701.70. This represents a 9.52% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Universal

Several large investors have recently modified their holdings of the stock. Bessemer Group Inc. boosted its stake in shares of Universal by 67.1% during the 1st quarter. Bessemer Group Inc. now owns 518 shares of the company's stock worth $27,000 after acquiring an additional 208 shares in the last quarter. CoreCap Advisors LLC raised its stake in shares of Universal by 2.7% in the 2nd quarter. CoreCap Advisors LLC now owns 23,641 shares of the company's stock valued at $1,233,000 after acquiring an additional 630 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Universal by 30.9% in the 2nd quarter. GAMMA Investing LLC now owns 3,980 shares of the company's stock valued at $208,000 after acquiring an additional 940 shares in the last quarter. Virginia Estate & Retirement Planning Advisors Inc. raised its stake in shares of Universal by 507.5% in the 3rd quarter. Virginia Estate & Retirement Planning Advisors Inc. now owns 1,215 shares of the company's stock valued at $51,000 after acquiring an additional 1,015 shares in the last quarter. Finally, Adams Asset Advisors LLC lifted its holdings in Universal by 0.8% in the 3rd quarter. Adams Asset Advisors LLC now owns 134,972 shares of the company's stock worth $5,640,000 after purchasing an additional 1,080 shares during the last quarter. 81.00% of the stock is owned by institutional investors.

Universal Company Profile

Universal Corporation NYSE: UVV is a global leaf tobacco supplier and processor. Through its operating companies, the company purchases tobacco from growers, processes and blends leaf, and supplies tobacco products and related materials to manufacturers of cigarettes, cigars, pipe tobacco and other tobacco products. Its services include crop contracting, agricultural support, curing, processing, storage, packaging and logistics.

Founded in 1918 and headquartered in Richmond, Virginia, Universal has developed an international network of tobacco sourcing, processing and distribution operations.

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