Kendall Capital Management Acquires New Position in UGI Corporation $UGI

Key Points

• Kendall Capital Management initiated a 61,578-share position in UGI worth approximately $2.13 million during the second quarter. Institutional investors collectively own 82.34% of the utility company.
• Analyst sentiment is mixed but leans cautious: UGI has a consensus “Hold” rating and an average price target of $42, while several firms recently downgraded the stock or reduced their targets.
• UGI reported quarterly earnings and revenue below expectations, but declared a quarterly dividend of $0.375, equivalent to an annualized $1.50 payout and a 4.0% yield.

Kendall Capital Management purchased a new stake in shares of UGI Corporation (NYSE:UGI - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 61,578 shares of the utilities provider's stock, valued at approximately $2,127,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in UGI by 9.2% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 78,715 shares of the utilities provider's stock worth $2,603,000 after acquiring an additional 6,649 shares during the last quarter. Goldman Sachs Group Inc. raised its position in UGI by 14.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 930,787 shares of the utilities provider's stock worth $30,781,000 after buying an additional 116,372 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of UGI by 17.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 785,327 shares of the utilities provider's stock valued at $25,971,000 after acquiring an additional 115,409 shares during the last quarter. Focus Partners Wealth increased its stake in shares of UGI by 92.6% in the first quarter. Focus Partners Wealth now owns 22,584 shares of the utilities provider's stock worth $747,000 after acquiring an additional 10,861 shares during the period. Finally, Baird Financial Group Inc. raised its holdings in shares of UGI by 15.6% during the second quarter. Baird Financial Group Inc. now owns 28,359 shares of the utilities provider's stock worth $1,033,000 after purchasing an additional 3,825 shares during the last quarter. Hedge funds and other institutional investors own 82.34% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on UGI. Zacks Research downgraded shares of UGI from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Weiss Ratings lowered UGI from a "buy (b)" rating to a "hold (c+)" rating in a research note on Tuesday, August 11th. Wall Street Zen cut UGI from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Jefferies Financial Group reaffirmed a "hold" rating and set a $40.00 target price (down from $45.00) on shares of UGI in a report on Thursday, April 30th. Finally, Wells Fargo & Company reduced their price target on UGI from $45.00 to $42.00 and set an "overweight" rating for the company in a research report on Friday, August 7th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $42.00.

Insider Buying and Selling at UGI

In related news, insider Kathleen Shea-Ballay sold 25,360 shares of the company's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $33.62, for a total value of $852,603.20. Following the completion of the transaction, 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 transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.57% of the stock is currently owned by corporate insiders.

UGI Stock Performance

Shares of NYSE UGI opened at $37.58 on Friday. The company has a market capitalization of $8.06 billion, a PE ratio of 12.57 and a beta of 0.93. The company has a debt-to-equity ratio of 1.28, a quick ratio of 1.22 and a current ratio of 1.44. The company's fifty day moving average price is $35.68 and its 200 day moving average price is $36.15. UGI Corporation has a 1 year low of $31.62 and a 1 year high of $41.34.

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 firm 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, research analysts predict that UGI Corporation will post 2.85 earnings per share for the current year.

UGI Dividend Announcement

The firm also recently declared 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. This represents a $1.50 annualized dividend and a dividend yield of 4.0%. The ex-dividend date is Tuesday, September 15th. UGI's payout ratio is currently 50.17%.

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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