Universal (NYSE:UVV) Shares Gap Down – Should You Sell?

Shares of Universal Co. (NYSE:UVV) gapped down prior to trading on Tuesday . The stock had previously closed at $53.56, but opened at $50.37. Universal shares last traded at $52.31, with a volume of 43,658 shares.

Universal Trading Up 1.4 %

The firm has a 50-day moving average of $51.71 and a 200 day moving average of $50.93. The company has a current ratio of 2.60, a quick ratio of 0.96 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $1.32 billion, a price-to-earnings ratio of 11.03 and a beta of 0.77.

Universal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, February 3rd. Investors of record on Monday, January 13th will be paid a dividend of $0.81 per share. This represents a $3.24 dividend on an annualized basis and a dividend yield of 6.04%. The ex-dividend date of this dividend is Monday, January 13th. Universal’s dividend payout ratio is currently 66.67%.

Universal announced that its board has authorized a share repurchase program on Thursday, November 7th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the company to purchase up to 7.8% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Universal

Several large investors have recently made changes to their positions in the business. BNP Paribas Financial Markets lifted its holdings in shares of Universal by 85.6% during the third quarter. BNP Paribas Financial Markets now owns 22,020 shares of the company’s stock valued at $1,169,000 after purchasing an additional 10,155 shares during the last quarter. FMR LLC boosted its holdings in shares of Universal by 438.0% in the third quarter. FMR LLC now owns 11,277 shares of the company’s stock worth $599,000 after buying an additional 9,181 shares during the period. Daiwa Securities Group Inc. boosted its holdings in shares of Universal by 9.2% in the third quarter. Daiwa Securities Group Inc. now owns 8,543 shares of the company’s stock worth $454,000 after buying an additional 722 shares during the period. Cerity Partners LLC raised its holdings in shares of Universal by 24.6% during the third quarter. Cerity Partners LLC now owns 25,004 shares of the company’s stock valued at $1,328,000 after acquiring an additional 4,935 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its holdings in shares of Universal by 4.6% during the third quarter. Charles Schwab Investment Management Inc. now owns 542,683 shares of the company’s stock valued at $28,822,000 after acquiring an additional 24,089 shares during the period. Institutional investors own 81.00% of the company’s stock.

Universal Company Profile

Universal Corporation processes and supplies leaf tobacco and plant-based ingredients worldwide. The company operates through two segments, Tobacco Operations; and Ingredients Operations. It is involved in the procuring, financing, processing, packing, storing, and shipping leaf tobacco for sale to manufacturers of consumer tobacco products.