Universal (NYSE:UVV) Shares Cross Below 200-Day Moving Average - Here's Why

Key Points

• Universal (UVV) shares fell below their 200‑day moving average, trading as low as $52.50 vs a 200‑day MA of $53.63 with about 146,835 shares changing hands.
• Analyst sentiment has weakened: several downgrades from Zacks, Weiss and Wall Street Zen leave the consensus rating at "Reduce."
• Mixed fundamentals — earnings miss but high dividend: the company missed quarterly EPS and revenue estimates, yet declared a $0.82 quarterly dividend (≈6.2% yield) with a payout ratio near 96.8%.

Universal Corporation (NYSE:UVV - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $53.63 and traded as low as $52.50. Universal shares last traded at $53.1350, with a volume of 146,835 shares trading hands.

Analysts Set New Price Targets

UVV has been the subject of a number of analyst reports. Zacks Research lowered Universal from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 12th. Weiss Ratings downgraded shares of Universal from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, March 23rd. Finally, Wall Street Zen cut shares of Universal from a "buy" rating to a "hold" rating in a report on Saturday, February 14th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce".

Universal Price Performance

The stock's fifty day moving average price is $53.79 and its 200-day moving average price is $53.63. The company has a debt-to-equity ratio of 0.40, a current ratio of 2.91 and a quick ratio of 1.30. The firm has a market cap of $1.32 billion, a price-to-earnings ratio of 15.67, a price-to-earnings-growth ratio of 3.16 and a beta of 0.66.

Universal (NYSE:UVV - Get Free Report) last posted its quarterly earnings data on Monday, February 9th. The company reported $1.35 EPS for the quarter, missing analysts' consensus estimates of $1.92 by ($0.57). Universal had a return on equity of 6.49% and a net margin of 2.93%.The firm had revenue of $861.29 million during the quarter, compared to analyst estimates of $927.20 million.

Universal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 4th. Stockholders of record on Wednesday, April 15th will be issued a dividend of $0.82 per share. The ex-dividend date is Wednesday, April 15th. This represents a $3.28 dividend on an annualized basis and a dividend yield of 6.2%. Universal's payout ratio is currently 96.76%.

Institutional Investors Weigh In On Universal

Hedge funds have recently bought and sold shares of the business. Royal Bank of Canada boosted its position in Universal by 18.8% during 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 holdings in shares of Universal by 8.7% in the 1st quarter. AQR Capital Management LLC now owns 24,791 shares of the company's stock valued at $1,390,000 after purchasing an additional 1,976 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Universal by 24.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 36,958 shares of the company's stock valued at $2,071,000 after purchasing an additional 7,261 shares during the period. Jane Street Group LLC purchased a new stake in shares of Universal in the first quarter worth approximately $3,927,000. Finally, Intech Investment Management LLC lifted its position in shares of Universal by 20.7% in 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. 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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