Universal Corporation (NYSE:UVV) Short Interest Update

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 recipient of a large growth in short interest during the month of August. As of August 15th, there was short interest totaling 610,800 shares, a growth of 36.7% 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 shares of the company are short sold. Currently, 2.6% of the shares of the company are short sold. Based on an average daily volume of 291,400 shares, the days-to-cover ratio is presently 2.1 days.

Insider Activity

In related news, Director Robert C. Sledd sold 4,617 shares of the stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $53.25, for a total value of $245,855.25. Following the completion of the sale, the director directly owned 15,698 shares of the company's stock, valued at approximately $835,918.50. This represents a 22.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, COO Airton L. Hentschke sold 10,000 shares of the stock in a transaction that occurred 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 completion of the sale, the chief operating officer directly owned 135,129 shares of the company's stock, valued at $7,423,987.26. This represents a 6.89% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 17,417 shares of company stock valued at $943,347 in the last quarter. 1.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Byrne Asset Management LLC bought a new position in shares of Universal during the 2nd quarter valued at approximately $30,000. EverSource Wealth Advisors LLC boosted its position in shares of Universal by 265.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 719 shares of the company's stock valued at $42,000 after acquiring an additional 522 shares during the last quarter. Elevation Point Wealth Partners LLC bought a new position in shares of Universal during the 2nd quarter valued at approximately $44,000. GAMMA Investing LLC boosted its position in shares of Universal by 38.6% during the 1st quarter. GAMMA Investing LLC now owns 1,149 shares of the company's stock valued at $64,000 after acquiring an additional 320 shares during the last quarter. Finally, Hantz Financial Services Inc. lifted its position in Universal by 63.2% in the second quarter. Hantz Financial Services Inc. now owns 1,343 shares of the company's stock worth $78,000 after buying an additional 520 shares during the last quarter. 81.00% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the stock. Wall Street Zen raised shares of Universal from a "hold" rating to a "buy" rating in a report on Friday, August 22nd. Zacks Research raised shares of Universal to a "hold" rating in a report on Wednesday, August 20th. One investment analyst has rated the stock with a Hold rating, According to MarketBeat, Universal currently has an average rating of "Hold".

Universal Price Performance

UVV stock traded down $0.70 during midday trading on Friday, hitting $55.44. The company's stock had a trading volume of 129,297 shares, compared to its average volume of 194,581. Universal has a 12 month low of $49.40 and a 12 month high of $67.33. The company has a quick ratio of 0.98, a current ratio of 2.49 and a debt-to-equity ratio of 0.41. The firm has a market capitalization of $1.38 billion, a price-to-earnings ratio of 13.49, a price-to-earnings-growth ratio of 6.31 and a beta of 0.75. The company has a 50 day moving average of $55.07 and a two-hundred day moving average of $56.17.

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

Universal Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Monday, October 13th will be given 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 is Friday, October 10th. Universal's dividend payout ratio is currently 79.81%.

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.