Universal (NYSE:UVV) Releases Earnings Results, Misses Estimates By $0.45 EPS

Universal (NYSE:UVV) issued its quarterly earnings data on Wednesday. The company reported ($0.20) EPS for the quarter, missing the consensus estimate of $0.25 by ($0.45), FiscalAI reports. The firm had revenue of $523.78 million for the quarter, compared to analysts’ expectations of $587.00 million. Universal had a net margin of 1.12% and a return on equity of 4.43%.

Universal Price Performance

Shares of NYSE:UVV traded down $0.73 during trading on Wednesday, reaching $52.03. The company had a trading volume of 294,077 shares, compared to its average volume of 223,267. The company has a fifty day moving average of $52.79 and a two-hundred day moving average of $53.33. The company has a current ratio of 3.49, a quick ratio of 1.66 and a debt-to-equity ratio of 0.42. The stock has a market capitalization of $1.30 billion, a P/E ratio of 40.33, a price-to-earnings-growth ratio of 4.03 and a beta of 0.60. Universal has a 12 month low of $49.19 and a 12 month high of $59.38.

Universal Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 3rd. Stockholders of record on Monday, July 13th were issued a $0.83 dividend. This represents a $3.32 dividend on an annualized basis and a dividend yield of 6.4%. The ex-dividend date of this dividend was Monday, July 13th. This is a positive change from Universal’s previous quarterly dividend of $0.82. Universal’s payout ratio is currently 257.36%.

Insider Activity

In related news, Director Robert C. Sledd sold 2,845 shares of the company’s 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 completion of the transaction, the director directly owned 11,959 shares in the company, valued at approximately $647,221.08. The trade was a 19.22% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.20% of the company’s stock.

Hedge Funds Weigh In On Universal

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada lifted its position in Universal by 18.8% in the 1st quarter. Royal Bank of Canada now owns 24,009 shares of the company’s stock worth $1,345,000 after buying an additional 3,795 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of Universal by 8.7% during the first quarter. AQR Capital Management LLC now owns 24,791 shares of the company’s stock worth $1,390,000 after acquiring an additional 1,976 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Universal by 24.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 36,958 shares of the company’s stock worth $2,071,000 after acquiring an additional 7,261 shares in the last quarter. Jane Street Group LLC bought a new stake in shares of Universal in the 1st quarter worth approximately $3,927,000. Finally, Intech Investment Management LLC boosted its stake in shares of Universal by 20.7% in the 1st 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 in the last quarter. 81.00% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

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

Key Universal News

Here are the key news stories impacting Universal this week:

• Positive Sentiment: Zacks Research upgraded Universal Corporation from “strong sell” to “hold.” The change removes an especially bearish rating, although “hold” indicates limited near-term conviction rather than a bullish outlook. Zacks Research
• Neutral Sentiment: Universal announced a planned leadership transition at its Universal Ingredients subsidiary. J. Patrick O’Keefe intends to retire, with the company expected to manage the transition; the announcement did not indicate a change to financial guidance or business strategy. Universal Announces Leadership Transition in Ingredients Segment
• Negative Sentiment: The leadership news comes as Universal’s most recent quarterly results showed an adjusted earnings loss of $0.46 per share, well below the $1.08 consensus estimate, while revenue also fell short of expectations. That earnings miss remains an overhang on sentiment and helps explain why investors may be reluctant to bid the stock higher.

Universal Company Profile

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.