Sidoti Brokers Decrease Earnings Estimates for Universal

Universal Corporation (NYSE:UVV) – Research analysts at Sidoti cut their Q2 2027 earnings estimates for shares of Universal in a note issued to investors on Monday, August 10th. Sidoti analyst D. Harriman now expects that the company will earn $0.58 per share for the quarter, down from their prior estimate of $1.22. The consensus estimate for Universal’s current full-year earnings is $4.30 per share. Sidoti also issued estimates for Universal’s FY2027 earnings at $3.18 EPS, Q1 2028 earnings at ($0.02) EPS and Q2 2028 earnings at $0.94 EPS.

Universal (NYSE:UVV) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate of $0.25 by ($0.43). Universal had a net margin of 0.67% and a return on equity of 3.50%. The firm had revenue of $523.78 million during the quarter, compared to analysts’ expectations of $587.00 million.

A number of other brokerages have also commented on UVV. Weiss Ratings lowered Universal from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, June 2nd. Zacks Research upgraded Universal from a “strong sell” rating to a “hold” rating in a research note on Monday, August 3rd. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat, Universal currently has an average rating of “Hold”.

Universal Price Performance

Shares of NYSE UVV opened at $46.34 on Wednesday. The company has a market capitalization of $1.15 billion, a PE ratio of 60.18, a PEG ratio of 3.67 and a beta of 0.60. The company has a quick ratio of 1.00, a current ratio of 2.57 and a debt-to-equity ratio of 0.43. The stock’s 50 day moving average price is $52.41 and its 200-day moving average price is $53.14. Universal has a twelve month low of $46.19 and a twelve month high of $59.38.

Institutional Trading of Universal

Several hedge funds have recently made changes to their positions in UVV. Baird Financial Group Inc. grew its stake in shares of Universal by 5.1% during the 2nd quarter. Baird Financial Group Inc. now owns 4,152 shares of the company’s stock worth $242,000 after acquiring an additional 200 shares during the period. Farther Finance Advisors LLC lifted its holdings in Universal by 75.2% during the fourth quarter. Farther Finance Advisors LLC now owns 466 shares of the company’s stock valued at $25,000 after purchasing an additional 200 shares during the last quarter. Rexford Capital Inc. lifted its holdings in Universal by 2.4% during the fourth quarter. Rexford Capital Inc. now owns 8,671 shares of the company’s stock valued at $457,000 after purchasing an additional 200 shares during the last quarter. Bessemer Group Inc. boosted its position in Universal by 67.1% during the first quarter. Bessemer Group Inc. now owns 518 shares of the company’s stock worth $27,000 after purchasing an additional 208 shares during the period. Finally, PNC Financial Services Group Inc. boosted its position 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 during the period. 81.00% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In related news, Director Lennart R. Freeman sold 1,782 shares of the company’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 transaction, the director 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 document filed with the Securities & Exchange Commission, which is accessible through this link. Also, 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 value of $153,971.40. Following the transaction, the director directly owned 11,959 shares of the company’s stock, valued at approximately $647,221.08. This trade represents a 19.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.20% of the stock is owned by corporate insiders.

Universal Dividend Announcement

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 given a dividend of $0.83 per share. This represents a $3.32 dividend on an annualized basis and a dividend yield of 7.2%. The ex-dividend date of this dividend is Friday, October 9th. Universal’s dividend payout ratio is currently 431.17%.

Key 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 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

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.