Universal (NYSE:UVV) Sets New 1-Year Low – Should You Sell?

Shares of Universal Corporation (NYSE:UVV) reached a new 52-week low during trading on Wednesday. The stock traded as low as $41.10 and last traded at $40.9610, with a volume of 85,506 shares trading hands. The stock had previously closed at $41.52.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on UVV. Zacks Research upgraded shares of Universal from a “strong sell” rating to a “hold” rating in a research note on Friday, October 9th. Wall Street Zen upgraded shares of Universal from a “sell” rating to a “hold” rating in a research report on Saturday, September 5th. Finally, Weiss Ratings cut Universal from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday, October 8th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Reduce”.

Universal Price Performance

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 capitalization of $1.01 billion, a PE ratio of 52.82, a P/E/G ratio of 13.18 and a beta of 0.58. The company’s fifty day simple moving average is $44.71 and its two-hundred day simple moving average is $50.09.

Universal (NYSE:UVV) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.18) earnings per share for the quarter, missing the consensus estimate 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 analysts’ expectations of $587.00 million. As a group, sell-side analysts predict that Universal Corporation will post 3.18 EPS for the current year.

Universal Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Stockholders of record on Monday, October 12th will be given a $0.83 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a $3.32 dividend on an annualized basis and a dividend yield of 8.2%. Universal’s payout ratio is currently 431.17%.

Insider Buying and Selling

In related news, Director Lennart Freeman sold 1,782 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $49.82, for a total transaction of $88,779.24. Following the transaction, 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 transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 2.20% of the company’s stock.

Institutional Investors Weigh In On Universal

Institutional investors have recently bought and sold shares of the stock. Bessemer Group Inc. raised its stake in shares of Universal by 67.1% in the 1st quarter. Bessemer Group Inc. now owns 518 shares of the company’s stock valued at $27,000 after acquiring an additional 208 shares during the period. Virginia Estate & Retirement Planning Advisors Inc. raised its holdings in shares of Universal by 507.5% during the 3rd quarter. Virginia Estate & Retirement Planning Advisors Inc. now owns 1,215 shares of the company’s stock valued at $51,000 after buying an additional 1,015 shares during the period. Byrne Asset Management LLC purchased a new position in Universal in the 3rd quarter worth approximately $126,000. Fifth Third Bancorp grew its position in Universal by 2,580.2% in the first quarter. Fifth Third Bancorp now owns 3,377 shares of the company’s stock valued at $178,000 after acquiring an additional 3,251 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in shares of Universal by 30.9% during the second quarter. GAMMA Investing LLC now owns 3,980 shares of the company’s stock valued at $208,000 after purchasing an additional 940 shares during the period. 81.00% of the stock is currently owned by hedge funds and other institutional investors.

Universal Company Profile

Universal Corporation (NYSE: UVV) is a global leaf tobacco supplier and processor. Through its operating companies, the company purchases tobacco from growers, processes and blends leaf, and supplies tobacco products and related materials to manufacturers of cigarettes, cigars, pipe tobacco and other tobacco products. Its services include crop contracting, agricultural support, curing, processing, storage, packaging and logistics.

Founded in 1918 and headquartered in Richmond, Virginia, Universal has developed an international network of tobacco sourcing, processing and distribution operations.