Universal (NYSE:UVV) Shares Gap Down After Insider Selling

Key Points

• Universal shares gapped down from a prior close of $46.22 to open at $44.47 after director Lennart R. Freeman sold 1,782 shares for approximately $88,800, reducing his position by 9.5%.
• The company reported a fiscal first-quarter loss of $0.18 per share and revenue of $523.8 million, missing estimates of $0.25 earnings and $587.0 million revenue. Analysts remain cautious, with the consensus rating at “Hold.”
• Universal declared a quarterly dividend of $0.83, equivalent to $3.32 annually and a yield of roughly 7.3%, though its payout ratio is elevated at 431.17%.

Universal Corporation (NYSE:UVV - Get Free Report) shares gapped down prior to trading on Wednesday following insider selling activity. The stock had previously closed at $46.22, but opened at $44.47. Universal shares last traded at $45.4350, with a volume of 78,475 shares.

Specifically, Director Lennart R. Freeman sold 1,782 shares of the firm's stock in a transaction that occurred 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 transaction, the director owned 16,935 shares in the company, valued at $843,701.70. This trade represents a 9.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on UVV. Weiss Ratings cut Universal from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 2nd. Zacks Research raised Universal from a "strong sell" rating to a "hold" rating in a research report on Monday, August 3rd. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has an average rating of "Hold".

More Universal News

Here are the key news stories impacting Universal this week:

• Positive Sentiment: Sidoti raised its estimates for Universal’s third-quarter and fourth-quarter fiscal 2028 EPS to $1.87 and $1.16, respectively, from $1.77 and $1.12. The increases suggest some potential improvement later in the forecast period.
• Positive Sentiment: Universal continues to offer an attractive quarterly dividend of $0.83, or $3.32 annually, implying a yield of approximately 7.2%. However, the high payout ratio makes the sustainability of that income an important consideration for investors.
• Neutral Sentiment: Analyst coverage remains cautious: Zacks upgraded Universal from “strong sell” to “hold,” while the broader analyst consensus remains “Hold.”
• Negative Sentiment: Universal reported a fiscal first-quarter loss of $0.18 per share, missing the consensus expectation for $0.25 of earnings. Revenue was $523.8 million versus the $587.0 million estimate, raising concerns about near-term demand and operating performance. Universal earnings and stock report
• Negative Sentiment: Sidoti reduced its fiscal 2027 EPS forecast to $3.18 from $4.30 and its fiscal 2028 forecast to $3.95 from $4.38. It also sharply lowered estimates for fiscal 2027 second-quarter EPS and fiscal 2028 first-quarter EPS, indicating weaker expected profitability despite some later-period increases.
• Negative Sentiment: Director Lennart R. Freeman sold 1,782 shares for approximately $88,800, cutting his direct ownership by 9.5%. While the sale may be routine, it adds a modest negative signal following the disappointing results. SEC Form 4 insider transaction

Universal Stock Down 1.6%

The stock's 50 day simple moving average is $52.41 and its two-hundred day simple moving average is $53.14. The firm has a market cap of $1.13 billion, a P/E ratio of 59.09, a P/E/G ratio of 3.67 and a beta of 0.60. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.57 and a quick ratio of 1.00.

Universal (NYSE:UVV - Get Free Report) last issued its quarterly 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 company had revenue of $523.78 million during the quarter, compared to the consensus estimate of $587.00 million. Universal had a return on equity of 3.50% and a net margin of 0.67%. As a group, research analysts forecast that Universal Corporation will post 4.3 earnings per share for the current year.

Universal Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 12th will be paid a $0.83 dividend. This represents a $3.32 dividend on an annualized basis and a dividend yield of 7.3%. The ex-dividend date of this dividend is Friday, October 9th. Universal's dividend payout ratio is currently 431.17%.

Hedge Funds Weigh In On Universal

Several institutional investors and hedge funds have recently modified their holdings of UVV. Qube Research & Technologies Ltd grew its holdings in shares of Universal by 180.5% during the second quarter. Qube Research & Technologies Ltd now owns 438,134 shares of the company's stock valued at $25,517,000 after buying an additional 281,920 shares during the last quarter. Millennium Management LLC increased its position 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 acquiring an additional 262,399 shares in the last quarter. UBS Group AG raised its holdings in Universal by 98.5% in the 4th quarter. UBS Group AG now owns 312,787 shares of the company's stock worth $16,500,000 after acquiring an additional 155,244 shares during the last quarter. Invesco Ltd. raised its holdings in Universal by 21.2% in the 3rd quarter. Invesco Ltd. now owns 815,801 shares of the company's stock worth $45,579,000 after acquiring an additional 142,439 shares during the last quarter. Finally, Cubist Systematic Strategies LLC bought a new position in Universal in the 2nd quarter valued at approximately $6,131,000. 81.00% of the stock is currently owned by 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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