Universal (NYSE:UVV) Hits New 12-Month Low – Should You Sell?

Universal Corporation (NYSE:UVV)’s share price hit 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

UVV has been the subject of a number of research reports. Zacks Research cut shares of Universal from a “hold” rating to a “strong sell” rating in a research report on Tuesday, September 1st. Weiss Ratings lowered Universal from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, August 12th. Finally, Wall Street Zen upgraded Universal from a “sell” rating to a “hold” rating in a research report on Saturday, September 5th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Universal currently has an average rating of “Reduce”.

Universal Stock Down 2.0%

The business’s fifty day moving average price is $48.29 and its 200 day moving average price is $51.30. The firm has a market capitalization of $1.08 billion, a price-to-earnings ratio of 56.16, a PEG ratio of 13.88 and a beta of 0.58. The company has a current ratio of 2.57, a quick ratio of 1.00 and a debt-to-equity ratio of 0.43.

Universal (NYSE:UVV) last issued its quarterly earnings results 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 business had revenue of $523.78 million for the quarter, compared to analyst estimates of $587.00 million. On average, equities analysts expect that Universal Corporation will post 3.18 EPS for the current year.

Universal Announces Dividend

The firm 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 dividend of $0.83 per share. The ex-dividend date is Friday, October 9th. This represents a $3.32 annualized dividend and a dividend yield of 7.7%. Universal’s dividend payout ratio is 431.17%.

Insider Activity

In related news, Director Lennart Freeman sold 1,782 shares of the firm’s 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 owned 16,935 shares of the company’s stock, valued at $843,701.70. This trade represents a 9.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 2.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vestcor Inc increased its stake in Universal by 282.7% in the 4th quarter. Vestcor Inc now owns 33,264 shares of the company’s stock valued at $1,755,000 after buying an additional 24,571 shares during the period. Renaissance Technologies LLC acquired a new stake in shares of Universal in the 1st quarter worth $4,220,000. First Trust Advisors LP boosted its holdings in shares of Universal by 35.5% in the first quarter. First Trust Advisors LP now owns 353,655 shares of the company’s stock valued at $18,638,000 after acquiring an additional 92,617 shares in the last quarter. Louisiana State Employees Retirement System purchased a new stake in shares of Universal in the first quarter valued at about $585,000. Finally, Foundations Investment Advisors LLC increased its stake in shares of Universal by 228.4% during the fourth quarter. Foundations Investment Advisors LLC now owns 21,682 shares of the company’s stock worth $1,144,000 after acquiring an additional 15,080 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 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.