Universal (NYSE:UVV) Reaches New 12-Month Low - What's Next?

Key Points

• Universal shares hit a new 52-week low of $41.90, falling below both their 50-day and 200-day moving averages; the stock has a market capitalization of about $1.04 billion.
• Analyst sentiment remains cautious, with ratings ranging from “hold” to “strong sell” and an average consensus rating of “Reduce.” The company also missed quarterly expectations, reporting a $0.18 loss per share versus the expected $0.25 profit and revenue below forecasts.
• Universal declared a quarterly dividend of $0.83 per share, equivalent to an annualized yield of approximately 7.9%; however, its payout ratio is an unusually high 431.17%.

Universal Corporation (NYSE:UVV - Get Free Report) reached a new 52-week low during trading on Monday. The stock traded as low as $41.90 and last traded at $41.90, with a volume of 59686 shares traded. The stock had previously closed at $42.47.

Analyst Ratings Changes

A number of brokerages recently issued reports on UVV. Wall Street Zen upgraded Universal from a "sell" rating to a "hold" rating in a research note on Saturday, September 5th. Zacks Research lowered Universal from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 1st. Finally, Weiss Ratings cut Universal from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Reduce".

Universal Trading Down 1.4%

The stock has a market cap of $1.04 billion, a P/E ratio of 54.34, a P/E/G ratio of 13.35 and a beta of 0.58. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.00 and a current ratio of 2.57. The stock's fifty day moving average is $47.41 and its 200 day moving average is $50.94.

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

Universal Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be given a dividend of $0.83 per share. The ex-dividend date is Friday, October 9th. This represents a $3.32 dividend on an annualized basis and a yield of 7.9%. Universal's payout ratio is 431.17%.

Insider Buying and Selling at Universal

In other news, Director Lennart Freeman sold 1,782 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $49.82, for a total transaction of $88,779.24. Following the completion of the sale, the director directly owned 16,935 shares of the company's stock, valued at approximately $843,701.70. The trade was a 9.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 2.20% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of UVV. Bessemer Group Inc. raised its holdings in Universal by 67.1% in the first quarter. Bessemer Group Inc. now owns 518 shares of the company's stock worth $27,000 after purchasing an additional 208 shares in the last quarter. PNC Financial Services Group Inc. boosted its position in shares of Universal by 7.9% in the 4th quarter. PNC Financial Services Group Inc. now owns 3,114 shares of the company's stock worth $164,000 after purchasing an additional 227 shares in the last quarter. CoreCap Advisors LLC grew its stake in Universal by 2.7% during the 2nd quarter. CoreCap Advisors LLC now owns 23,641 shares of the company's stock worth $1,233,000 after buying an additional 630 shares during the last quarter. Hilton Head Capital Partners LLC purchased a new position in Universal during the 4th quarter worth $47,000. Finally, GAMMA Investing LLC increased its position in Universal by 30.9% during the 2nd quarter. GAMMA Investing LLC now owns 3,980 shares of the company's stock valued at $208,000 after buying an additional 940 shares in the last quarter. Institutional investors own 81.00% of the company's stock.

Universal Company Profile

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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