Universal (NYSE:UVV) Stock Price Crosses Below Two Hundred Day Moving Average - Time to Sell?

Key Points

• Universal’s shares fell below their 200-day moving average, trading as low as $41.54 versus the $50.48 average, with the stock last quoted near $42.27.
• Analyst sentiment is weak: Zacks Research downgraded the stock to “strong sell,” while MarketBeat reports an overall “Reduce” rating. Universal also missed quarterly estimates, posting a loss of $0.18 per share versus expectations for $0.25 in earnings.
• The company declared a quarterly dividend of $0.83, equivalent to a 7.9% annualized yield, but its payout ratio is an unusually high 431.17%, raising questions about dividend sustainability.

Universal Corporation (NYSE:UVV - Get Free Report)'s share price passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $50.48 and traded as low as $41.54. Universal shares last traded at $42.2690, with a volume of 355,699 shares changing hands.

Analyst Ratings Changes

Several equities analysts have recently weighed in on UVV shares. Weiss Ratings downgraded shares of Universal from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, August 12th. Zacks Research lowered shares of Universal from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 1st. Finally, Wall Street Zen raised shares of Universal from a "sell" rating to a "hold" rating in a report on Saturday, September 5th. One 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.com, Universal has an average rating of "Reduce".

Universal Stock Up 0.2%

The company has a market cap of $1.05 billion, a PE ratio of 54.90, a P/E/G ratio of 13.27 and a beta of 0.58. The stock has a 50-day moving average of $46.04 and a 200-day moving average of $50.48. 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 announced its earnings results on Wednesday, August 5th. The company reported ($0.18) earnings per share 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 business had revenue of $523.78 million during the quarter, compared to the consensus estimate of $587.00 million. Sell-side 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. Stockholders of record on Monday, October 12th will be issued a $0.83 dividend. This represents a $3.32 dividend on an annualized basis and a dividend yield of 7.9%. The ex-dividend date is Friday, October 9th. Universal's dividend payout ratio is presently 431.17%.

Insider Transactions at Universal

In other news, Director Lennart Freeman sold 1,782 shares of the business's 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 completion of the sale, the director directly owned 16,935 shares in the company, valued at approximately $843,701.70. The trade was a 9.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 2.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Universal

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Bessemer Group Inc. boosted its position in shares of Universal by 67.1% in the 1st 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. CoreCap Advisors LLC raised its stake in Universal by 2.7% in the second quarter. CoreCap Advisors LLC now owns 23,641 shares of the company's stock valued at $1,233,000 after buying an additional 630 shares during the last quarter. Hilton Head Capital Partners LLC acquired a new stake in Universal in the fourth quarter worth about $47,000. GAMMA Investing LLC boosted its holdings in Universal by 30.9% in the second quarter. GAMMA Investing LLC now owns 3,980 shares of the company's stock worth $208,000 after acquiring an additional 940 shares in the last quarter. Finally, Pzena Investment Management LLC grew its stake in shares of Universal by 0.6% during the first quarter. Pzena Investment Management LLC now owns 329,488 shares of the company's stock worth $17,364,000 after acquiring an additional 1,810 shares during the last quarter. 81.00% of the stock is currently owned by institutional investors.

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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