Universal (NYSE:UVV) Reaches New 1-Year Low - Here's What Happened

Key Points

• Universal shares fell to a new 52-week low, trading as low as $48.50 and last at approximately $48.05, below its prior close of $50.84.
• The company missed quarterly expectations, reporting a loss of $0.18 per share versus an expected profit of $0.25 and revenue of $523.78 million versus estimates of $587 million. Analysts collectively maintain a “Hold” rating.
• Universal declared a quarterly dividend of $0.83 per share, implying an annualized yield of about 7.0%; however, its payout ratio is elevated at 431.17%.

Universal Corporation (NYSE:UVV - Get Free Report)'s share price hit a new 52-week low during trading on Monday . The stock traded as low as $48.50 and last traded at $48.0490, with a volume of 72396 shares trading hands. The stock had previously closed at $50.84.

Analyst Upgrades and Downgrades

UVV has been the subject of several research analyst reports. Zacks Research upgraded shares of Universal from a "strong sell" rating to a "hold" rating in a report on Monday, August 3rd. Weiss Ratings lowered shares of Universal from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 2nd. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company has an average rating of "Hold".

Universal Price Performance

The company has a 50-day moving average of $52.70 and a 200-day moving average of $53.26. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.00 and a current ratio of 2.57. The stock has a market cap of $1.19 billion, a price-to-earnings ratio of 61.96, a PEG ratio of 3.94 and a beta of 0.60.

Universal (NYSE:UVV - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $523.78 million for the quarter, compared to analyst estimates of $587.00 million. As a group, equities research analysts predict that Universal Corporation will post 4.3 earnings per share for the current year.

Universal Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 12th will be paid a dividend of $0.83 per share. This represents a $3.32 annualized dividend and a dividend yield of 7.0%. The ex-dividend date is Friday, October 9th. Universal's dividend payout ratio is 431.17%.

Insider Buying and Selling at Universal

In related news, Director Robert C. Sledd sold 2,845 shares of Universal stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $54.12, for a total value of $153,971.40. Following the transaction, the director directly owned 11,959 shares in the company, valued at $647,221.08. This trade represents a 19.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 2.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Universal

Large investors have recently bought and sold shares of the company. Royal Bank of Canada lifted its stake in shares of Universal by 18.8% in the 1st quarter. Royal Bank of Canada now owns 24,009 shares of the company's stock worth $1,345,000 after acquiring an additional 3,795 shares during the period. AQR Capital Management LLC increased its stake in shares of Universal by 8.7% during the first quarter. AQR Capital Management LLC now owns 24,791 shares of the company's stock worth $1,390,000 after acquiring an additional 1,976 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Universal by 24.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 36,958 shares of the company's stock worth $2,071,000 after acquiring an additional 7,261 shares during the period. Jane Street Group LLC purchased a new position in Universal during the first quarter worth about $3,927,000. Finally, Intech Investment Management LLC raised its holdings in Universal by 20.7% during the first quarter. Intech Investment Management LLC now owns 24,070 shares of the company's stock worth $1,349,000 after purchasing an additional 4,124 shares in the last quarter. Hedge funds and other institutional investors own 81.00% of the company's stock.

About Universal

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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