Zacks Research Issues Negative Outlook for UGI Earnings

Key Points

• Zacks Research lowered UGI’s Q4 2026 EPS estimate to a loss of $0.32 from a loss of $0.10 and maintains a “Strong Sell” rating. The firm also reduced several full-year earnings forecasts, signaling continued concerns about the company’s earnings momentum.
• UGI recently missed quarterly expectations, reporting a loss of $0.20 per share versus the $0.08 consensus estimate, while revenue of $1.33 billion came in below the $1.50 billion forecast. Despite mixed analyst views, the stock carries a consensus “Hold” rating with an average price target of $42.
• UGI declared a quarterly dividend of $0.375 per share, equivalent to $1.50 annually and a 3.9% yield, payable October 1 to shareholders of record on September 15.

UGI Corporation (NYSE:UGI - Free Report) - Equities researchers at Zacks Research cut their Q4 2026 earnings estimates for shares of UGI in a research note issued to investors on Thursday, August 27th. Zacks Research analyst Team now anticipates that the utilities provider will post earnings per share of ($0.32) for the quarter, down from their prior estimate of ($0.10). Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for UGI's current full-year earnings is $2.82 per share. Zacks Research also issued estimates for UGI's Q3 2027 earnings at ($0.21) EPS, Q4 2027 earnings at ($0.24) EPS and Q3 2028 earnings at ($0.20) EPS.

A number of other equities analysts also recently issued reports on the company. Weiss Ratings downgraded UGI from a "buy (b)" rating to a "hold (c+)" rating in a research report on Tuesday, August 11th. Wall Street Zen raised UGI from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, 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 note on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $42.00.

UGI Price Performance

Shares of UGI opened at $38.12 on Monday. The company has a market cap of $8.18 billion, a price-to-earnings ratio of 12.75 and a beta of 0.93. UGI has a twelve month low of $31.62 and a twelve month high of $41.34. The company has a quick ratio of 1.22, a current ratio of 1.44 and a debt-to-equity ratio of 1.28. The company has a 50 day moving average of $36.12 and a two-hundred day moving average of $36.12.

UGI (NYSE:UGI - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The utilities provider reported ($0.20) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.12). UGI had a return on equity of 12.80% and a net margin of 9.20%.The firm had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.50 billion.

Institutional Investors Weigh In On UGI

Several institutional investors and hedge funds have recently made changes to their positions in the stock. California State Teachers Retirement System grew its holdings in shares of UGI by 3,298.1% during the second quarter. California State Teachers Retirement System now owns 8,565,782 shares of the utilities provider's stock valued at $295,862,000 after buying an additional 8,313,708 shares during the last quarter. Captrust Financial Advisors raised its stake in UGI by 11.4% in the 4th quarter. Captrust Financial Advisors now owns 3,191,444 shares of the utilities provider's stock worth $119,456,000 after acquiring an additional 327,511 shares during the last quarter. The Manufacturers Life Insurance Company purchased a new position in UGI in the 2nd quarter worth $73,069,000. Russell Investments Group Ltd. lifted its position in UGI by 75.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 1,335,508 shares of the utilities provider's stock worth $46,130,000 after acquiring an additional 575,239 shares during the period. Finally, Energy Income Partners LLC lifted its position in UGI by 1.5% during the 2nd quarter. Energy Income Partners LLC now owns 1,302,403 shares of the utilities provider's stock worth $44,985,000 after acquiring an additional 18,808 shares during the period. 82.34% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other UGI news, insider Kathleen Shea-Ballay sold 25,360 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $33.62, for a total transaction of $852,603.20. Following the sale, the insider owned 25,360 shares of the company's stock, valued at approximately $852,603.20. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.57% of the company's stock.

UGI Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be paid a $0.375 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $1.50 dividend on an annualized basis and a yield of 3.9%. UGI's dividend payout ratio (DPR) is 50.17%.

UGI News Summary

Here are the key news stories impacting UGI this week:

• Positive Sentiment: KKR reportedly wants to acquire UGI for approximately $9 billion. A potential takeover at that valuation could provide upside support for UGI shareholders, although the report does not establish that a deal has been agreed or that negotiations will succeed. KKR Wants to Buy a Sleepy Utility for $9 Billion
• Positive Sentiment: Zacks Research modestly raised its Q1 2028 EPS forecast to $1.25 from $1.24 and its Q2 2028 forecast to $2.71 from $2.64. These increases suggest some improvement in longer-term quarterly expectations, despite the firm’s overall bearish rating.
• Neutral Sentiment: UGI is beginning natural-gas main replacement work in Pittston and system upgrades affecting parts of Lancaster City and Lancaster Township. The projects may improve reliability and support the regulated utility’s infrastructure base over time, but they will also cause temporary construction disruptions and do not represent an immediate earnings catalyst. UGI to begin natural gas main replacement in Pittston UGI system upgrades in Lancaster
• Negative Sentiment: Zacks cut its FY2026 EPS estimate to $2.83 from $2.89, FY2027 to $3.23 from $3.30, FY2028 to $3.50 from $3.53, and Q2 2027 to $2.53 from $2.54. The FY2026 forecast is also below the $2.85 consensus estimate, reinforcing concerns about earnings momentum and weighing against the potential takeover speculation.

UGI Company Profile

UGI Corporation NYSE: UGI is a publicly traded energy distribution company headquartered in King of Prussia, Pennsylvania. Founded in 1882 as the United Gas Improvement Company, UGI has grown into a diversified provider of energy products and services. The company's operations are organized into three primary segments—AmeriGas Propane, UGI Utilities and UGI International—each focused on the delivery of propane, natural gas and related services to residential, commercial and industrial customers.

AmeriGas Propane, UGI's largest segment, is the leading retail propane distributor in the United States with a network of dealers serving customers in all 50 states.

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