Universal (NYSE:UVV) Shares Pass Below Two Hundred Day Moving Average - Here's Why

Key Points

• Universal shares fell below their 200-day moving average, trading near $45.10 versus the $51.56 average. Analysts’ consensus rating is “Reduce,” with one Hold and one Sell rating.
• The company missed quarterly expectations, reporting a loss of $0.18 per share versus the expected $0.25 profit, while revenue of $523.78 million came in below the $587 million estimate.
• Universal declared a quarterly dividend of $0.83 per share, equivalent to a 7.4% yield, though its payout ratio is elevated at 431.17%. Institutional investors own approximately 81% of the stock.

Universal Corporation (NYSE:UVV - Get Free Report) shares passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $51.56 and traded as low as $45.06. Universal shares last traded at $45.10, with a volume of 351,928 shares changing hands.

Analyst Upgrades and Downgrades

A number of analysts recently commented on UVV shares. Wall Street Zen upgraded shares of Universal from a "sell" rating to a "hold" rating in a research note on Saturday, September 5th. Zacks Research lowered shares of Universal from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 1st. Finally, Weiss Ratings downgraded shares of Universal from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Reduce".

Universal Stock Performance

The stock has a market cap of $1.12 billion, a price-to-earnings ratio of 58.57, a P/E/G ratio of 14.21 and a beta of 0.58. The firm's 50-day moving average is $48.88 and its two-hundred day moving average is $51.56. The company has a current ratio of 2.57, a quick ratio of 1.00 and a debt-to-equity ratio of 0.43.

Universal (NYSE:UVV - Get Free Report) last issued its quarterly earnings results 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). Universal had a return on equity of 3.50% and a net margin of 0.67%.The firm had revenue of $523.78 million during the quarter, compared to analyst estimates of $587.00 million. As a group, sell-side analysts expect 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 issued a dividend of $0.83 per share. This represents a $3.32 annualized dividend and a dividend yield of 7.4%. The ex-dividend date is Friday, October 9th. Universal's payout ratio is currently 431.17%.

Insiders Place Their Bets

In other Universal news, Director Lennart Freeman sold 1,782 shares of the company's stock in a transaction 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 completion of the sale, the director directly owned 16,935 shares in the company, valued at $843,701.70. This represents a 9.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.20% of the company's stock.

Institutional Trading of Universal

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Sequoia Financial Advisors LLC purchased a new stake in Universal in the second quarter valued at approximately $278,000. Engineers Gate Manager LP purchased a new position in shares of Universal during the second quarter worth $284,000. Squarepoint Ops LLC grew its stake in shares of 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 buying an additional 8,032 shares in the last quarter. iSAM Funds UK Ltd acquired a new stake in shares of Universal in the second quarter valued at $219,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Universal by 18.0% in the 2nd 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 buying an additional 3,610 shares during the period. 81.00% of the stock is 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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