SIR Capital Management L.P. Purchases New Stake in UGI Corporation $UGI

Key Points

• SIR Capital Management acquired 91,226 UGI shares worth approximately $3.15 million during the second quarter, joining several other funds that initiated positions. Institutional investors and hedge funds collectively own 82.34% of UGI.
• Analyst sentiment has weakened, with multiple firms downgrading UGI and cutting price targets. The stock carries a consensus “Hold” rating and a $42 target price.
• UGI recently reported quarterly revenue of $1.33 billion and an adjusted loss of $0.20 per share, both below expectations, while maintaining a quarterly dividend of $0.375 per share, or a 3.9% annualized yield.

SIR Capital Management L.P. acquired a new position in shares of UGI Corporation (NYSE:UGI - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 91,226 shares of the utilities provider's stock, valued at approximately $3,151,000.

A number of other hedge funds have also recently added to or reduced their stakes in the business. MSH Capital Advisors LLC acquired a new stake in shares of UGI during the second quarter worth $1,961,000. Landscape Capital Management L.L.C. bought a new position in shares of UGI in the 2nd quarter worth about $1,949,000. Csenge Advisory Group acquired a new position in shares of UGI in the 2nd quarter valued at about $1,014,000. NewEdge Wealth LLC acquired a new position in shares of UGI in the 2nd quarter valued at about $3,537,000. Finally, PEAK6 LLC bought a new stake in shares of UGI during the 2nd quarter valued at about $1,548,000. Institutional investors and hedge funds own 82.34% of the company's stock.

Insider Transactions at UGI

In related news, insider Kathleen Shea-Ballay sold 25,360 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $33.62, for a total value of $852,603.20. Following the sale, the insider directly owned 25,360 shares in the company, valued at $852,603.20. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.57% of the stock is owned by company insiders.

Analyst Ratings Changes

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

UGI Trading Up 1.6%

Shares of NYSE:UGI opened at $38.18 on Tuesday. The company has a market cap of $8.19 billion, a PE ratio of 12.77 and a beta of 0.93. The company's 50-day moving average price is $35.76 and its 200 day moving average price is $36.11. UGI Corporation has a fifty-two week low of $31.62 and a fifty-two week 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.

UGI (NYSE:UGI - Get Free Report) last posted its earnings results on Thursday, August 6th. The utilities provider reported ($0.20) earnings per share (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 for the quarter, compared to analyst estimates of $1.50 billion. Sell-side analysts anticipate that UGI Corporation will post 2.85 earnings per share for the current year.

UGI Dividend Announcement

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

UGI 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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