UGI (NYSE:UGI) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded UGI from “hold” to “sell.” Despite the downgrade, MarketBeat’s analyst consensus remains “Moderate Buy,” with an average price target of $45.80.
• UGI’s latest reported quarter fell short of expectations: it posted an adjusted loss of $0.20 per share versus a forecast loss of $0.08, and revenue of $1.33 billion versus an expected $1.50 billion.
• Shares opened at $37.07, within a 12-month range of $31.65 to $41.34; institutional investors and hedge funds own 82.34% of the stock.

UGI (NYSE:UGI - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Other equities analysts have also issued reports about the stock. Weiss Ratings lowered shares of UGI from a "buy (b)" rating to a "hold (c+)" rating in a research report on Tuesday, August 11th. Zacks Research upgraded shares of UGI from a "strong sell" rating to a "hold" rating in a research report on Monday, October 26th. Huntington assumed coverage on UGI in a research report on Monday, September 14th. They set an "outperform" rating and a $54.00 price target on the stock. Wells Fargo & Company dropped their target price on UGI from $45.00 to $42.00 and set an "overweight" rating on the stock in a research report on Friday, August 7th. Finally, Scotiabank started coverage on shares of UGI in a research report on Tuesday, September 29th. They issued an "outperform" rating and a $46.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $45.80.

UGI Stock Performance

Shares of UGI opened at $37.07 on Friday. The stock has a market capitalization of $7.95 billion, a price-to-earnings ratio of 13.26 and a beta of 0.94. The firm has a fifty day simple moving average of $37.71 and a 200 day simple moving average of $36.73. UGI has a 12 month low of $31.65 and a 12 month high of $41.34. The company has a current ratio of 1.44, a quick ratio of 1.22 and a debt-to-equity ratio of 1.28.

UGI (NYSE:UGI - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The utilities provider reported ($0.20) EPS for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.12). UGI had a net margin of 9.20% and a return on equity of 12.80%. The firm had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.50 billion. Research analysts forecast that UGI will post 2.81 EPS for the current fiscal year.

Institutional Investors Weigh In On UGI

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. MSH Capital Advisors LLC bought a new position in shares of UGI in the 2nd quarter valued at approximately $1,961,000. Private Management Group Inc. grew its stake in UGI by 10.8% during the second quarter. Private Management Group Inc. now owns 1,057,888 shares of the utilities provider's stock valued at $36,539,000 after acquiring an additional 103,470 shares in the last quarter. Landscape Capital Management L.L.C. bought a new stake in UGI in the second quarter valued at $1,949,000. Canada Pension Plan Investment Board bought a new stake in UGI during the second quarter valued at approximately $1,665,000. Finally, The Manufacturers Life Insurance Company purchased a new position in UGI during the second quarter worth $73,069,000. Institutional investors and hedge funds own 82.34% of the company's stock.

About UGI

UGI Corporation is a diversified energy company headquartered in King of Prussia, Pennsylvania. Founded in 1882 as the United Gas Improvement Company, it has developed into an operator and distributor of energy businesses serving residential, commercial, industrial and institutional customers.

Through UGI Utilities, the company distributes natural gas and provides electric utility service in parts of Pennsylvania. Its other operations include natural gas marketing, midstream services and energy-related activities in the United States, along with propane distribution through AmeriGas and liquefied petroleum gas distribution in Europe through UGI International.

UGI's businesses serve customers across the United States and selected European markets.

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