Universal (NYSE:UVV) Reaches New 1-Year Low – Here’s Why

Shares of Universal Corporation (NYSE:UVV) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $43.25 and last traded at $43.22, with a volume of 89997 shares changing hands. The stock had previously closed at $44.14.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Weiss Ratings downgraded shares of Universal from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, August 12th. Zacks Research lowered shares of Universal from a “hold” rating to a “strong sell” rating in a report on Tuesday, September 1st. Finally, Wall Street Zen upgraded shares of Universal from a “sell” rating to a “hold” rating in a research note on Saturday, September 5th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce”.

Universal Stock Performance

The firm has a market cap of $1.08 billion, a price-to-earnings ratio of 56.46, a PEG ratio of 13.62 and a beta of 0.58. The stock’s fifty day moving average is $48.00 and its two-hundred day moving average is $51.15. 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) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.25 by ($0.43). The firm had revenue of $523.78 million during the quarter, compared to analyst estimates of $587.00 million. Universal had a net margin of 0.67% and a return on equity of 3.50%. On average, analysts expect that Universal Corporation will post 3.18 earnings per share for the current fiscal year.

Universal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 2nd. Shareholders of record on Monday, October 12th will be paid a dividend of $0.83 per share. The ex-dividend date of this dividend is Friday, October 9th. This represents a $3.32 annualized dividend and a yield of 7.6%. Universal’s payout ratio is presently 431.17%.

Insider Transactions at Universal

In other news, Director Lennart 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 transaction, the director owned 16,935 shares of the company’s stock, valued at approximately $843,701.70. This represents a 9.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 2.20% of the company’s stock.

Hedge Funds Weigh In On Universal

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bessemer Group Inc. increased its stake in Universal by 67.1% during the 1st quarter. Bessemer Group Inc. now owns 518 shares of the company’s stock valued at $27,000 after buying an additional 208 shares during the period. Hilton Head Capital Partners LLC bought a new stake in Universal during the fourth quarter worth approximately $47,000. PNC Financial Services Group Inc. raised its holdings in Universal by 7.9% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,114 shares of the company’s stock worth $164,000 after purchasing an additional 227 shares in the last quarter. Sittner & Nelson LLC lifted its position in Universal by 44.4% in the fourth quarter. Sittner & Nelson LLC now owns 3,250 shares of the company’s stock worth $188,000 after purchasing an additional 1,000 shares during the period. Finally, Fifth Third Bancorp boosted its stake in Universal by 2,580.2% during the 1st quarter. Fifth Third Bancorp now owns 3,377 shares of the company’s stock valued at $178,000 after purchasing an additional 3,251 shares in the last quarter. Institutional investors own 81.00% of the company’s stock.

About Universal

Universal Corporation (NYSE: UVV) is a global agricultural company that supplies processed tobacco leaf and related products to manufacturers of cigarettes, cigars, pipe tobacco, heated tobacco products and other tobacco products. The company purchases tobacco from growers, provides agronomic and technical support, and processes, blends, packs and stores leaf tobacco to meet customers’ specifications.

Through its Universal Leaf Tobacco subsidiaries and affiliated operations, Universal serves tobacco markets across multiple regions, including North and South America, Europe, Africa and Asia.