Hennessy Advisors Inc. Cuts Stock Holdings in UGI Corporation $UGI

Key Points

• Hennessy Advisors cut its UGI stake by 67.1% during the second quarter, selling 232,200 shares and retaining 113,952 shares worth approximately $3.94 million. Institutional investors still own 82.34% of UGI.
• UGI’s latest quarter fell short of expectations, reporting an adjusted loss of $0.20 per share versus the $0.08 loss analysts anticipated, while revenue of $1.33 billion missed the $1.50 billion consensus estimate.
• The company declared a quarterly dividend of $0.375 per share, representing a 3.9% annualized yield. Analyst sentiment remains mixed, with an average “Hold” rating and a $42 consensus price target, while potential acquisition interest from KKR could provide an upside catalyst.

Hennessy Advisors Inc. lowered its stake in shares of UGI Corporation (NYSE:UGI - Free Report) by 67.1% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 113,952 shares of the utilities provider's stock after selling 232,200 shares during the quarter. Hennessy Advisors Inc. owned 0.05% of UGI worth $3,936,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. MSH Capital Advisors LLC bought a new stake in UGI in the 2nd quarter worth about $1,961,000. Landscape Capital Management L.L.C. bought a new position in shares of UGI during the 2nd quarter worth approximately $1,949,000. PEAK6 LLC bought a new position in shares of UGI during the 2nd quarter worth approximately $1,548,000. Csenge Advisory Group purchased a new position in shares of UGI in the 2nd quarter worth approximately $1,014,000. Finally, Bank of Nova Scotia purchased a new position in shares of UGI in the 2nd quarter worth approximately $10,515,000. 82.34% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about UGI

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 Stock Performance

Shares of UGI stock opened at $38.12 on Monday. The firm's 50 day moving average is $36.12 and its 200 day moving average is $36.12. The stock has a market capitalization of $8.18 billion, a P/E ratio of 12.75 and a beta of 0.93. UGI Corporation has a 12 month low of $31.62 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 released its quarterly earnings data on Thursday, August 6th. The utilities provider reported ($0.20) earnings per share for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.12). The business had revenue of $1.33 billion during the quarter, compared to analysts' expectations of $1.50 billion. UGI had a net margin of 9.20% and a return on equity of 12.80%. On average, sell-side analysts anticipate that UGI Corporation will post 2.82 earnings per share for the current year.

UGI Announces Dividend

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

Insider Transactions at UGI

In related news, insider Kathleen Shea-Ballay sold 25,360 shares of the stock in a transaction dated Thursday, June 18th. The stock was 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. This represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.57% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently commented on UGI. Wall Street Zen raised UGI from a "sell" rating to a "hold" rating in a research report on Saturday. Wells Fargo & Company cut their price objective on UGI from $45.00 to $42.00 and set an "overweight" rating on the stock in a research report on Friday, August 7th. Zacks Research downgraded UGI from a "hold" rating to a "strong sell" rating in a research note on Monday, July 13th. Finally, Weiss Ratings lowered UGI from a "buy (b)" rating to a "hold (c+)" rating in a research report on Tuesday, August 11th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $42.00.

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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