Universal (NYSE:UVV) Sets New 12-Month Low – Here’s What Happened

Universal Corporation (NYSE:UVV)’s stock price hit a new 52-week low on Monday . The stock traded as low as $48.50 and last traded at $48.0490, with a volume of 72396 shares. The stock had previously closed at $50.84.

Key Headlines Impacting Universal

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 earnings to $1.87 and $1.16 per share, respectively, from $1.77 and $1.12. These increases suggest some improvement in the analyst’s outlook for those periods.
• Neutral Sentiment: Sidoti lowered its fourth-quarter fiscal 2027 EPS forecast modestly to $1.05 from $1.07, while maintaining estimates of $3.95 EPS for fiscal 2028 and $4.30 for the current full year.
• Negative Sentiment: Sidoti cut its fiscal 2028 EPS forecast sharply to $3.95 from $4.38. The reduction indicates weaker expected profitability over the full year and is likely weighing more heavily than the higher quarterly estimates.
• Negative Sentiment: Universal’s fiscal first-quarter results were well below expectations: the company reported a $0.18-per-share loss versus the consensus estimate of $0.25 in earnings, while revenue of $523.8 million fell short of the $587.0 million forecast. The earnings miss has undermined investor confidence in near-term operating performance. Universal Corp Stock Is Falling Today: What’s Behind the Drop
• Negative Sentiment: Director Lennart R. Freeman sold 1,782 shares for approximately $88,800, reducing his direct ownership by 9.5%. Although insider sales can be routine, the transaction adds a modest negative signal after the disappointing earnings report. SEC Form 4 Insider Transaction

Analyst Upgrades and Downgrades

A number of research analysts recently commented on UVV shares. Weiss Ratings downgraded shares of Universal from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 2nd. Zacks Research raised shares of Universal from a “strong sell” rating to a “hold” rating in a research report on Monday, August 3rd. Two investment analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold”.

Universal Stock Down 2.2%

The stock has a market cap of $1.15 billion, a PE ratio of 60.18, a P/E/G ratio of 3.67 and a beta of 0.60. The business has a 50 day moving average of $52.41 and a 200-day moving average of $53.14. 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 data 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). The firm had revenue of $523.78 million during the quarter, compared to analysts’ expectations of $587.00 million. Universal had a net margin of 0.67% and a return on equity of 3.50%. Equities research analysts predict that Universal Corporation will post 4.3 EPS for the current fiscal year.

Universal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Monday, October 12th will be given a $0.83 dividend. The ex-dividend date is Friday, October 9th. This represents a $3.32 annualized dividend and a yield of 7.2%. Universal’s dividend payout ratio is 431.17%.

Insiders Place Their Bets

In related news, Director Robert C. Sledd sold 2,845 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $54.12, for a total transaction of $153,971.40. Following the completion of the sale, the director owned 11,959 shares in the company, valued at $647,221.08. This represents a 19.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Lennart R. Freeman sold 1,782 shares of the firm’s stock in a transaction on 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 $843,701.70. The trade was a 9.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Universal

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada raised its stake in Universal by 18.8% during the 1st quarter. Royal Bank of Canada now owns 24,009 shares of the company’s stock valued at $1,345,000 after acquiring an additional 3,795 shares during the last quarter. AQR Capital Management LLC grew its stake 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 last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake 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 last quarter. Jane Street Group LLC acquired a new position in shares of Universal in the first quarter valued at approximately $3,927,000. Finally, Intech Investment Management LLC increased its holdings 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 valued at $1,349,000 after purchasing an additional 4,124 shares during the period. Hedge funds and other institutional investors own 81.00% of the company’s stock.

About Universal

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.