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

Universal Corporation (NYSE:UVV) shares gapped down prior to trading on Monday after the company announced weaker than expected quarterly earnings. 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 EPS for the quarter, missing analysts’ consensus estimates of $1.92 by ($0.57). The firm had revenue of $861.29 million during the quarter, compared to the consensus estimate of $927.20 million. Universal had a net margin of 2.93% and a return on equity of 6.49%.

Universal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 4th. Shareholders of record on Wednesday, April 15th will be issued a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 6.4%. The ex-dividend date is Wednesday, April 15th. Universal’s dividend payout ratio is 96.76%.

More Universal News

Here are the key news stories impacting Universal this week:

• Positive Sentiment: Universal named Steven S. Diel as Senior VP & Chief Financial Officer effective April 1, 2026; company emphasizes his 25+ years of finance and strategy experience, which investors may view as strengthening financial execution and strategic planning. Universal Corporation Appoints Steven S. Diel as Chief Financial Officer
• Positive Sentiment: Company press release highlights “solid performance” in tobacco operations and provides nine-month and Q3 commentary that management says supports stability across core businesses—this can help offset concern from the headline miss. Universal Corporation Reports Nine Month and Third Quarter 2026 Results
• Neutral Sentiment: Full Q3 earnings call transcript and highlight recaps were published; read these for management’s color on margins, geographic mix, working capital and outlook (important for judging whether the miss is transitory). Q3 2026 Earnings Call Highlights
• Neutral Sentiment: Multiple transcripts (Seeking Alpha, MSN, Yahoo) are available for investors who want line-by-line commentary from the call; these may clarify capital allocation and any revised guidance. Earnings Call Transcript
• Negative Sentiment: Q3 EPS of $1.35 missed the consensus ($1.92) and fell from $2.37 a year ago; revenue of $861.29M also missed estimates (~$927.2M). The earnings and revenue misses are the primary near-term negative catalyst. Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Profitability metrics showed compression (net margin ~3.74%, ROE ~8.24%), which may pressure valuation until consistent recovery or clearer guidance on cost/volume improvements is provided. Earnings Snapshot & Metrics

Wall Street Analyst Weigh In

Several brokerages recently issued reports on UVV. Weiss Ratings lowered Universal from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, December 29th. Zacks Research cut shares of Universal from a “strong-buy” rating to a “hold” rating in a report on Monday, December 29th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has a consensus rating of “Hold”.

Hedge Funds Weigh In On Universal

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in Universal by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 2,983,924 shares of the company’s stock worth $157,402,000 after acquiring an additional 35,513 shares in the last quarter. State Street Corp grew its stake in Universal by 1.6% in the second quarter. State Street Corp now owns 1,378,295 shares of the company’s stock valued at $80,272,000 after purchasing an additional 21,763 shares in the last quarter. Invesco Ltd. increased its position in shares of Universal by 21.2% during the 3rd quarter. Invesco Ltd. now owns 815,801 shares of the company’s stock worth $45,579,000 after purchasing an additional 142,439 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Universal by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 624,381 shares of the company’s stock worth $32,943,000 after purchasing an additional 5,844 shares in the last quarter. Finally, Barclays PLC raised its stake in shares of Universal by 917.9% during the 3rd quarter. Barclays PLC now owns 578,564 shares of the company’s stock worth $32,324,000 after purchasing an additional 521,724 shares in the last quarter. Institutional investors own 81.00% of the company’s stock.

Universal Trading Up 0.0%

The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.06 and a current ratio of 2.91. The firm has a fifty day moving average price of $54.28 and a 200 day moving average price of $54.06. The company has a market cap of $1.29 billion, a price-to-earnings ratio of 15.23, a P/E/G ratio of 2.72 and a beta of 0.66.

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.