Universal (NYSE:UVV) Shares Gap Down – What’s Next?

Shares of Universal Co. (NYSE:UVV) gapped down before the market opened 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 changing hands.

Universal Stock Performance

The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.96 and a current ratio of 2.60. The firm has a market cap of $1.32 billion, a P/E ratio of 10.90 and a beta of 0.77. The business’s 50-day simple moving average is $51.72 and its 200 day simple moving average is $50.92.

Universal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, February 3rd. Stockholders of record on Monday, January 13th will be given a dividend of $0.81 per share. This represents a $3.24 annualized dividend and a dividend yield of 6.06%. The ex-dividend date is Monday, January 13th. Universal’s dividend payout ratio is 66.67%.

Universal declared that its Board of Directors has approved a share buyback program on Thursday, November 7th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 7.8% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Universal

Hedge funds and other institutional investors have recently bought and sold shares of the company. GAMMA Investing LLC boosted its holdings in Universal by 82.6% in the 3rd quarter. GAMMA Investing LLC now owns 672 shares of the company’s stock valued at $36,000 after purchasing an additional 304 shares during the last quarter. AlphaMark Advisors LLC lifted its stake in shares of Universal by 41.7% in the second quarter. AlphaMark Advisors LLC now owns 850 shares of the company’s stock valued at $41,000 after purchasing an additional 250 shares during the period. nVerses Capital LLC acquired a new stake in shares of Universal in the second quarter valued at about $43,000. Canada Pension Plan Investment Board purchased a new position in Universal during the 2nd quarter valued at about $48,000. Finally, Blue Trust Inc. grew its holdings in shares of Universal by 145.2% during the second quarter. Blue Trust Inc. now owns 1,030 shares of the company’s stock worth $53,000 after buying an additional 610 shares in the last quarter. Hedge funds and other institutional investors own 81.00% of the company’s stock.

About Universal

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.