Universal (NYSE:UVV) Shares Break Below Two Hundred Day Moving Average - Here's What Happened

Key Points

• Universal shares fell below their 200-day moving average of $50.09, reaching as low as $41.45 and closing near $41.54.
• Analysts remain cautious, with ratings split between Hold and Sell and a consensus recommendation of “Reduce.” The company also recently missed quarterly earnings and revenue expectations.
• Universal announced a quarterly dividend of $0.83 per share, equivalent to an annualized $3.32 payout and an approximately 8.0% yield, though its payout ratio is exceptionally high at 431.17%.

Universal Corporation (NYSE:UVV - Get Free Report)'s stock price passed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $50.09 and traded as low as $41.45. Universal shares last traded at $41.54, with a volume of 278,437 shares traded.

Wall Street Analysts Forecast Growth

UVV has been the subject of a number of research 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 upgraded shares of Universal from a "sell" rating to a "hold" rating in a research report on Saturday, September 5th. Finally, Weiss Ratings cut Universal from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Reduce".

Universal Stock Performance

The firm has a market capitalization of $1.03 billion, a price-to-earnings ratio of 53.95, a P/E/G ratio of 13.18 and a beta of 0.58. The stock's fifty day moving average is $44.71 and its two-hundred day moving average is $50.09. The company has a quick ratio of 1.00, a current ratio of 2.57 and a debt-to-equity ratio of 0.43.

Universal (NYSE:UVV - Get Free Report) last issued its earnings results 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). The firm had revenue of $523.78 million during the quarter, compared to analyst estimates of $587.00 million. Universal had a net margin of 0.67% and a return on equity of 3.50%. On average, analysts predict that Universal Corporation will post 3.18 earnings per share for the current year.

Universal Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 12th will be paid a dividend of $0.83 per share. This represents a $3.32 dividend on an annualized basis and a dividend yield of 8.0%. The ex-dividend date is Friday, October 9th. Universal's dividend payout ratio (DPR) is currently 431.17%.

Insider Activity

In other news, Director Lennart Freeman sold 1,782 shares of the company's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $49.82, for a total value of $88,779.24. Following the transaction, the director owned 16,935 shares of the company's stock, valued at approximately $843,701.70. This represents a 9.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Universal

Hedge funds and other institutional investors have recently bought and sold shares of the business. Renaissance Technologies LLC bought a new stake in shares of Universal in the first quarter valued at approximately $4,220,000. First Trust Advisors LP raised its stake in Universal by 35.5% in the first quarter. First Trust Advisors LP now owns 353,655 shares of the company's stock valued at $18,638,000 after purchasing an additional 92,617 shares in the last quarter. Louisiana State Employees Retirement System bought a new stake in Universal during the first quarter worth about $585,000. Edgestream Partners L.P. acquired a new stake in Universal during the first quarter worth about $508,000. Finally, Sei Investments Co. raised its position in shares of Universal by 77.3% in the 1st quarter. Sei Investments Co. now owns 28,189 shares of the company's stock valued at $1,486,000 after buying an additional 12,288 shares in the last quarter. Institutional investors and hedge funds own 81.00% of the company's stock.

About Universal

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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