Sidoti Issues Pessimistic Estimate for Universal Earnings

Universal Corporation (NYSE:UVV) – Equities research analysts at Sidoti dropped their Q2 2027 earnings per share estimates for shares of Universal in a research note issued on Monday, August 10th. Sidoti analyst D. Harriman now anticipates that the company will post earnings of $0.58 per share for the quarter, down from their prior forecast 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.

Several other equities analysts also recently issued reports on UVV. Weiss Ratings downgraded shares of Universal from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, June 2nd. Zacks Research raised shares of Universal from a “strong sell” rating to a “hold” rating in a research note on Monday, August 3rd. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has a consensus rating of “Hold”.

Universal Stock Down 2.2%

NYSE:UVV opened at $46.34 on Wednesday. Universal has a one year low of $46.19 and a one year high of $59.38. The company has a debt-to-equity ratio of 0.43, a current ratio of 2.57 and a quick ratio of 1.00. The company 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 firm’s 50 day simple moving average is $52.41 and its 200 day simple moving average is $53.14.

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

Universal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, November 2nd. Investors of record on Monday, October 12th will be paid a $0.83 dividend. 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 payout ratio is currently 431.17%.

Insider Buying and Selling

In other Universal news, Director Robert C. Sledd sold 2,845 shares of the firm’s stock in a transaction that occurred 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 transaction, the director owned 11,959 shares in the company, valued at approximately $647,221.08. This trade represents a 19.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Lennart R. Freeman sold 1,782 shares of the firm’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 transaction of $88,779.24. Following the transaction, the director owned 16,935 shares of the company’s stock, valued at approximately $843,701.70. The trade was a 9.52% decrease in their position. The SEC filing for this sale provides additional information. 2.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Universal

Large investors have recently modified their holdings of the company. Baird Financial Group Inc. raised its stake 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 purchasing an additional 200 shares during the last quarter. Farther Finance Advisors LLC boosted its position in shares of 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 buying an additional 200 shares during the last quarter. Rexford Capital Inc. boosted its position in shares of 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 buying an additional 200 shares during the last quarter. Bessemer Group Inc. grew its holdings 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 buying an additional 208 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its holdings 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 buying an additional 227 shares in the last quarter. 81.00% of the stock is currently owned by institutional investors and hedge funds.

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.