Ultrapar Participacoes S.A. (NYSE:UGP) Stock Short Interest Rises 61.2%

Key Points

• Short interest surged 61.2% to 7.21 million shares as of September 30, representing approximately 0.7% of Ultrapar’s shares and 1.7 days to cover.
• Ultrapar shares recently traded at $7.67, near their 12-month high of $8.28. The company’s latest quarterly EPS of $0.28 slightly exceeded estimates, while revenue came in below expectations.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $6.54; insiders also sold 77,785 shares worth about $587,000 over the past 90 days.

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report) was the target of a large increase in short interest in the month of September. As of September 30th, there was short interest totaling 7,208,171 shares, an increase of 61.2% from the September 15th total of 4,472,882 shares. Approximately 0.7% of the company's shares are short sold. Based on an average daily volume of 4,120,831 shares, the days-to-cover ratio is presently 1.7 days.

Ultrapar Participacoes Stock Up 0.4%

Shares of NYSE UGP traded up $0.03 during trading on Friday, reaching $7.67. The company had a trading volume of 804,725 shares, compared to its average volume of 3,199,421. Ultrapar Participacoes has a 12-month low of $3.60 and a 12-month high of $8.28. The stock has a market cap of $8.56 billion, a PE ratio of 12.58, a P/E/G ratio of 0.44 and a beta of 0.71. The business's 50-day moving average is $7.12 and its 200 day moving average is $6.16. The company has a quick ratio of 1.26, a current ratio of 1.64 and a debt-to-equity ratio of 0.74.

Ultrapar Participacoes (NYSE:UGP - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The oil and gas company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.01. The firm had revenue of $8 billion during the quarter, compared to analyst estimates of $8.18 billion. Ultrapar Participacoes had a return on equity of 18.84% and a net margin of 2.28%. As a group, equities analysts forecast that Ultrapar Participacoes will post 0.84 earnings per share for the current fiscal year.

Ultrapar Participacoes Announces Dividend

The company also recently announced a dividend, which was paid on Monday, September 14th. Shareholders of record on Wednesday, August 26th were issued a $0.1932 dividend. The ex-dividend date of this dividend was Wednesday, August 26th. This represents a yield of 599.0%. Ultrapar Participacoes's payout ratio is 50.82%.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Scotiabank downgraded shares of Ultrapar Participacoes from a "sector outperform" rating to a "hold" rating in a research note on Thursday, September 17th. UBS Group upped their target price on Ultrapar Participacoes from $7.20 to $7.90 and gave the stock a "buy" rating in a report on Friday, September 4th. Bank of America raised Ultrapar Participacoes from a "neutral" rating to a "buy" rating and increased their target price for the stock from $6.80 to $7.40 in a research report on Wednesday, July 8th. Weiss Ratings cut Ultrapar Participacoes from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Finally, The Goldman Sachs Group dropped their price target on Ultrapar Participacoes from $6.50 to $5.80 and set a "neutral" rating on the stock in a research report on Wednesday, August 26th. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, Ultrapar Participacoes presently has a consensus rating of "Hold" and an average price target of $6.54.

Insiders Place Their Bets

In other news, CFO Andre Saleme Hachem sold 39,200 shares of the firm's stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $7.67, for a total value of $300,664.00. Following the completion of the sale, the chief financial officer directly owned 25,675 shares of the company's stock, valued at approximately $196,927.25. This trade represents a 60.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Pedro Guedes Rabelo sold 30,000 shares of Ultrapar Participacoes stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $7.58, for a total transaction of $227,400.00. Following the sale, the insider directly owned 57,898 shares in the company, valued at $438,866.84. The trade was a 34.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 77,785 shares of company stock worth $587,312. 1.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. EverSource Wealth Advisors LLC increased its position in shares of Ultrapar Participacoes by 45.0% during the first quarter. EverSource Wealth Advisors LLC now owns 6,383 shares of the oil and gas company's stock valued at $35,000 after acquiring an additional 1,982 shares in the last quarter. R Squared Ltd purchased a new position in Ultrapar Participacoes in the 1st quarter worth approximately $55,000. Caitong International Asset Management Co. Ltd purchased a new position in Ultrapar Participacoes in the 4th quarter worth approximately $57,000. Allspring Global Investments Holdings LLC bought a new position in Ultrapar Participacoes in the 1st quarter valued at approximately $62,000. Finally, Royal Bank of Canada lifted its position in Ultrapar Participacoes by 165.5% in the 1st quarter. Royal Bank of Canada now owns 12,390 shares of the oil and gas company's stock valued at $68,000 after acquiring an additional 7,724 shares in the last quarter. Institutional investors own 3.58% of the company's stock.

About Ultrapar Participacoes

Ultrapar Participações SA is a Brazilian holding company with operations focused on energy, fuel distribution and logistics. Through its businesses, the company supplies fuels, liquefied petroleum gas (LPG) and related services to consumers, commercial customers and industrial clients.

Its principal businesses include Ipiranga, one of Brazil's major fuel distribution companies, and Ultragaz, which distributes LPG for residential, commercial and industrial use. Ultrapar also owns Ultracargo, a provider of storage and handling services for liquid bulk products, including fuels, chemicals and other industrial materials.

Ultrapar's operations are concentrated primarily in Brazil, with activities supported by distribution networks, terminals and storage infrastructure across key regions of the country.

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