Universal (NYSE:UVV) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Universal from “Hold” to “Sell,” while the broader analyst consensus remains “Hold.” Weiss Ratings also lowered its assessment, whereas Zacks Research upgraded the stock to “Hold.”
• Universal’s latest quarterly results missed expectations, with a loss of $0.18 per share versus the projected $0.25 profit and revenue of $523.78 million versus estimates of $587 million.
• Shares opened at $44.82, near their 52-week low of $44.47. Two company directors recently sold shares, although institutional investors own approximately 81% of the stock.

Universal (NYSE:UVV - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Several other brokerages have also commented on UVV. Weiss Ratings lowered Universal from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday. Zacks Research raised shares of Universal from a "strong sell" rating to a "hold" rating in a research report on Monday, August 3rd. Two analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, Universal currently has an average rating of "Hold".

Universal Stock Down 0.2%

UVV stock opened at $44.82 on Friday. Universal has a fifty-two week low of $44.47 and a fifty-two week high of $59.38. The company has a market capitalization of $1.12 billion, a price-to-earnings ratio of 58.21, a price-to-earnings-growth ratio of 14.12 and a beta of 0.60. The business's 50 day moving average price is $51.91 and its two-hundred day moving average price is $52.95. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.00 and a current ratio of 2.57.

Universal (NYSE:UVV - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.18) EPS for the quarter, missing analysts' consensus estimates of $0.25 by ($0.43). The firm had revenue of $523.78 million during the quarter, compared to analysts' expectations of $587.00 million. Universal had a net margin of 0.67% and a return on equity of 3.50%. As a group, analysts forecast that Universal will post 3.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Universal news, Director Robert C. Sledd sold 2,845 shares of the business's stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $54.12, for a total value of $153,971.40. Following the sale, the director directly owned 11,959 shares of the company's stock, valued at approximately $647,221.08. The trade was a 19.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Lennart R. Freeman sold 1,782 shares of the 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 approximately $843,701.70. This represents a 9.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.20% of the stock is currently owned by insiders.

Institutional Trading of Universal

Institutional investors have recently bought and sold shares of the company. Qube Research & Technologies Ltd increased its stake in Universal by 180.5% during the 2nd quarter. Qube Research & Technologies Ltd now owns 438,134 shares of the company's stock valued at $25,517,000 after purchasing an additional 281,920 shares in the last quarter. Millennium Management LLC grew its holdings in shares of Universal by 1,575.1% during the third quarter. Millennium Management LLC now owns 279,058 shares of the company's stock valued at $15,591,000 after buying an additional 262,399 shares during the last quarter. UBS Group AG grew its holdings in shares of Universal by 98.5% during the fourth quarter. UBS Group AG now owns 312,787 shares of the company's stock valued at $16,500,000 after buying an additional 155,244 shares during the last quarter. Invesco Ltd. increased its position in shares of Universal by 21.2% during the third quarter. Invesco Ltd. now owns 815,801 shares of the company's stock valued at $45,579,000 after acquiring an additional 142,439 shares in the last quarter. Finally, Cubist Systematic Strategies LLC bought a new stake in shares of Universal during the second quarter valued at approximately $6,131,000. 81.00% of the stock is owned by hedge funds and other institutional investors.

Universal Company Profile

Universal Corporation NYSE: UVV is a global agribusiness company primarily engaged in the procurement, processing and sale of leaf tobacco. Headquartered in Richmond, Virginia, the company sources cured leaf tobacco from key growing regions in North and South America, Africa and Asia. Universal serves major multinational tobacco manufacturers by providing a full range of services including inventory management, quality control and logistics support to ensure a consistent and reliable supply of tobacco leaf.

In addition to its core leaf tobacco operations, Universal offers integrated supply-chain services that encompass warehousing, distribution and ingredient sourcing for smokeless and novel tobacco products.

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