Ultrapar Participacoes (NYSE:UGP) Shares Gap Down - Should You Sell?

Key Points

• Ultrapar Participacoes shares fell 4.5%, opening at $7.21 versus the prior close of $7.49, despite trading above both its 50-day and 200-day moving averages.
• Analyst sentiment remains a “Moderate Buy,” with one Strong Buy, three Buy and four Hold ratings; however, the consensus price target is $6.54, below the recent trading price.
• The company slightly beat quarterly earnings expectations with EPS of $0.28 versus $0.27 expected, while insiders sold 77,785 shares worth approximately $587,000 over the past three months.

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report)'s stock price gapped down before the market opened on Friday. The stock had previously closed at $7.49, but opened at $7.21. Ultrapar Participacoes shares last traded at $7.1850, with a volume of 515,595 shares changing hands.

Analyst Upgrades and Downgrades

UGP has been the subject of a number of research reports. The Goldman Sachs Group decreased their price target on shares of Ultrapar Participacoes from $6.50 to $5.80 and set a "neutral" rating for the company in a research note on Wednesday, August 26th. Scotiabank cut Ultrapar Participacoes from a "sector outperform" rating to a "hold" rating in a research note on Thursday, September 17th. Weiss Ratings upgraded Ultrapar Participacoes from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday. UBS Group boosted their price objective on shares of Ultrapar Participacoes from $7.20 to $7.90 and gave the stock a "buy" rating in a report on Friday, September 4th. Finally, Bank of America upgraded shares of Ultrapar Participacoes from a "neutral" rating to a "buy" rating and upped their target price for the company from $6.80 to $7.40 in a research note on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $6.54.

Ultrapar Participacoes Trading Down 4.5%

The firm has a market capitalization of $7.98 billion, a P/E ratio of 11.75, a price-to-earnings-growth ratio of 0.43 and a beta of 0.73. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.64 and a quick ratio of 1.26. The stock's 50-day simple moving average is $6.75 and its two-hundred day simple moving average is $5.90.

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 EPS for the quarter, beating analysts' consensus estimates of $0.27 by $0.01. The business had revenue of $8 billion for the quarter, compared to analysts' expectations of $8.18 billion. Ultrapar Participacoes had a return on equity of 18.84% and a net margin of 2.28%. Equities research analysts expect that Ultrapar Participacoes S.A. will post 0.84 EPS for the current year.

Ultrapar Participacoes Announces Dividend

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

Insider Transactions at Ultrapar Participacoes

In related news, insider Pedro Guedes Rabelo sold 30,000 shares of the company's stock in a transaction on 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 owned 57,898 shares of the company's stock, valued at $438,866.84. This represents a 34.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Andre Saleme Hachem sold 39,200 shares of the stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $7.67, for a total transaction of $300,664.00. Following the transaction, the chief financial officer owned 25,675 shares of the company's stock, valued at $196,927.25. This trade represents a 60.42% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 77,785 shares of company stock valued at $587,312. 1.80% of the stock is currently owned by insiders.

Institutional Trading of Ultrapar Participacoes

A number of large investors have recently made changes to their positions in UGP. EverSource Wealth Advisors LLC grew its position in Ultrapar Participacoes by 45.0% in the first quarter. EverSource Wealth Advisors LLC now owns 6,383 shares of the oil and gas company's stock worth $35,000 after acquiring an additional 1,982 shares in the last quarter. R Squared Ltd purchased a new stake in Ultrapar Participacoes during the first quarter valued at approximately $55,000. Allspring Global Investments Holdings LLC purchased a new stake in Ultrapar Participacoes during the first quarter valued at approximately $62,000. Royal Bank of Canada lifted its stake in shares of 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 purchasing an additional 7,724 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in shares of Ultrapar Participacoes in the 4th quarter valued at approximately $57,000. 3.58% of the stock is currently owned by institutional investors.

Ultrapar Participacoes Company Profile

Ultrapar Participações SA is a Brazilian holding company with operations focused on fuel distribution, liquefied petroleum gas and bulk liquid storage. The company traces its origins to 1937, when it was established as Companhia Brasileira de Gás a Domicílio, the predecessor of Ultragaz. Ultrapar's American depositary shares trade on the New York Stock Exchange under the symbol UGP.

Its principal businesses include Ipiranga, a fuel distribution company that supplies gasoline, ethanol, diesel and other fuels through a nationwide network of service stations.

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