Short Interest in Universal Corporation (NYSE:UVV) Increases By 36.7%

Key Points

• Short interest in Universal Corporation increased by 36.7% in August, totaling 610,800 shares, which represents 2.6% of its stock being short sold.
• Universal recently announced a quarterly dividend of $0.82 per share with a dividend yield of 5.9%, payable on November 3rd to shareholders of record by October 13th.
• Institutional investors own 81% of Universal's stock, with some, like Baird Financial Group Inc., recently increasing their positions in the company.

Universal Corporation (NYSE:UVV - Get Free Report) was the target of a large increase in short interest in the month of August. As of August 15th, there was short interest totaling 610,800 shares, anincreaseof36.7% from the July 31st total of 446,800 shares. Based on an average daily volume of 291,400 shares, the days-to-cover ratio is presently 2.1 days. Currently,2.6% of the company's stock are short sold. Currently,2.6% of the company's stock are short sold. Based on an average daily volume of 291,400 shares, the days-to-cover ratio is presently 2.1 days.

Universal Price Performance

UVV traded down $0.02 during midday trading on Monday, hitting $55.50. The stock had a trading volume of 180,042 shares, compared to its average volume of 205,074. The company has a market cap of $1.38 billion, a P/E ratio of 13.50, a price-to-earnings-growth ratio of 6.24 and a beta of 0.75. The business has a fifty day moving average of $55.29 and a 200 day moving average of $56.13. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.98 and a current ratio of 2.49. Universal has a 1 year low of $49.40 and a 1 year high of $67.33.

Universal (NYSE:UVV - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $0.38 earnings per share (EPS) for the quarter. The business had revenue of $593.76 million during the quarter. Universal had a return on equity of 8.46% and a net margin of 3.51%.

Universal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Monday, October 13th will be paid a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a dividend yield of 5.9%. The ex-dividend date of this dividend is Friday, October 10th. Universal's dividend payout ratio is 79.81%.

Insider Activity at Universal

In other news, COO Airton L. Hentschke sold 10,000 shares of Universal stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $54.94, for a total transaction of $549,400.00. Following the sale, the chief operating officer directly owned 135,129 shares in the company, valued at $7,423,987.26. The trade was a 6.89% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Lennart R. Freeman sold 2,800 shares of Universal stock in a transaction on Monday, August 11th. The stock was sold at an average price of $52.89, for a total value of $148,092.00. Following the sale, the director owned 19,669 shares in the company, valued at $1,040,293.41. The trade was a 12.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 17,417 shares of company stock valued at $943,347. 1.90% of the stock is owned by company insiders.

Institutional Trading of Universal

A number of institutional investors have recently made changes to their positions in the stock. Baird Financial Group Inc. lifted its position in Universal by 5.1% during the second quarter. Baird Financial Group Inc. now owns 4,152 shares of the company's stock valued at $242,000 after buying an additional 200 shares during the period. SummerHaven Investment Management LLC lifted its position in Universal by 1.6% during the second quarter. SummerHaven Investment Management LLC now owns 16,786 shares of the company's stock valued at $978,000 after buying an additional 267 shares during the period. Exchange Traded Concepts LLC lifted its position in Universal by 2.0% during the second quarter. Exchange Traded Concepts LLC now owns 15,015 shares of the company's stock valued at $874,000 after buying an additional 288 shares during the period. Ameriprise Financial Inc. lifted its position in Universal by 0.4% during the second quarter. Ameriprise Financial Inc. now owns 80,377 shares of the company's stock valued at $4,681,000 after buying an additional 297 shares during the period. Finally, GAMMA Investing LLC lifted its position in Universal by 38.6% during the first quarter. GAMMA Investing LLC now owns 1,149 shares of the company's stock valued at $64,000 after buying an additional 320 shares during the period. Hedge funds and other institutional investors own 81.00% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. Zacks Research upgraded Universal to a "hold" rating in a research note on Wednesday, August 20th. Wall Street Zen upgraded Universal from a "hold" rating to a "buy" rating in a research note on Friday, August 22nd. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat, the company currently has a consensus rating of "Hold".

About Universal

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products.

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