Universal (NYSE:UVV) Shares Gap Down Following Weak Earnings

Universal Corporation (NYSE:UVV)’s stock price gapped down before the market opened on Monday following a dissappointing earnings announcement. The stock had previously closed at $57.82, but opened at $54.09. Universal shares last traded at $53.4250, with a volume of 122,413 shares changing hands.

The company reported $1.35 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.92 by ($0.57). The business had revenue of $861.29 million during the quarter, compared to the consensus estimate of $927.20 million. Universal had a return on equity of 8.24% and a net margin of 3.74%.

Universal Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, May 4th. Stockholders of record on Wednesday, April 15th will be given a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date of this dividend is Wednesday, April 15th. Universal’s dividend payout ratio is 73.87%.

Wall Street Analysts Forecast Growth

UVV has been the topic of a number of analyst reports. Zacks Research cut shares of Universal from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. Weiss Ratings downgraded shares of Universal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, Universal currently has an average rating of “Hold”.

Institutional Trading of Universal

Large investors have recently modified their holdings of the stock. GAMMA Investing LLC lifted its holdings in shares of Universal by 16.9% in the 4th quarter. GAMMA Investing LLC now owns 1,357 shares of the company’s stock worth $72,000 after purchasing an additional 196 shares in the last quarter. Farther Finance Advisors LLC raised its position in shares of Universal by 75.2% during the 4th quarter. Farther Finance Advisors LLC now owns 466 shares of the company’s stock valued at $25,000 after buying an additional 200 shares in the last quarter. Baird Financial Group Inc. increased its holdings in shares of Universal by 5.1% in the second quarter. Baird Financial Group Inc. now owns 4,152 shares of the company’s stock worth $242,000 after buying an additional 200 shares during the period. CoreCap Advisors LLC lifted its holdings in Universal by 1.0% in the 3rd quarter. CoreCap Advisors LLC now owns 22,326 shares of the company’s stock worth $1,247,000 after buying an additional 217 shares during the period. Finally, PNC Financial Services Group Inc. raised its position in shares of Universal by 7.9% in the 4th quarter. PNC Financial Services Group Inc. now owns 3,114 shares of the company’s stock worth $164,000 after acquiring an additional 227 shares in the last quarter. Institutional investors and hedge funds own 81.00% of the company’s stock.

Universal Stock Down 7.4%

The stock has a market capitalization of $1.33 billion, a PE ratio of 12.03, a P/E/G ratio of 3.05 and a beta of 0.66. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.06 and a current ratio of 2.70. The stock’s 50-day moving average price is $54.33 and its two-hundred day moving average price is $54.10.

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.