Ultrapar Participacoes (NYSE:UGP) Hits New 52-Week High - Should You Buy?

Key Points

• Ultrapar Participacoes hit a new 52-week high, trading as high as $6.59 and closing around $6.545, up 3.4% on the day.
• Analyst sentiment has improved, with UBS and Bank of America raising price targets to $7.20 and $7.40, respectively. The stock carries a “Moderate Buy” consensus, though the average target of $6.32 is below its current price.
• The company exceeded quarterly EPS estimates by reporting $0.28 versus the expected $0.27, while revenue came in below forecasts. Ultrapar also announced a $0.1932-per-share dividend, with a 34.43% payout ratio.

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report)'s stock price reached a new 52-week high on Wednesday . The stock traded as high as $6.59 and last traded at $6.5450, with a volume of 2827543 shares. The stock had previously closed at $6.33.

Analysts Set New Price Targets

UGP has been the topic of a number of research reports. Weiss Ratings raised Ultrapar Participacoes from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday. Wall Street Zen raised shares of Ultrapar Participacoes from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 9th. UBS Group upped their price target on shares of Ultrapar Participacoes from $7.00 to $7.20 and gave the company a "buy" rating in a research note on Wednesday, June 17th. Finally, Bank of America raised shares of Ultrapar Participacoes from a "neutral" rating to a "buy" rating and raised their price target for the stock from $6.80 to $7.40 in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $6.32.

Ultrapar Participacoes Trading Up 3.4%

The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.26 and a current ratio of 1.64. The company has a market capitalization of $7.30 billion, a price-to-earnings ratio of 10.73, a price-to-earnings-growth ratio of 0.37 and a beta of 0.70. The firm has a fifty day moving average price of $5.71 and a 200-day moving average price of $5.51.

Ultrapar Participacoes (NYSE:UGP - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The oil and gas company reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.01. The firm had revenue of $8 billion for the quarter, compared to the consensus estimate of $8.18 billion. Ultrapar Participacoes had a net margin of 2.28% and a return on equity of 18.84%. As a group, equities analysts anticipate that Ultrapar Participacoes S.A. will post 0.78 EPS for the current year.

Ultrapar Participacoes Dividend Announcement

The firm also recently announced a dividend, which will be paid on Monday, September 14th. Shareholders of record on Wednesday, August 26th will be paid a dividend of $0.1932 per share. The ex-dividend date is Wednesday, August 26th. This represents a yield of 634.0%. Ultrapar Participacoes's dividend payout ratio is presently 34.43%.

Hedge Funds Weigh In On Ultrapar Participacoes

Hedge funds and other institutional investors have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership raised its position in Ultrapar Participacoes by 235.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 927,216 shares of the oil and gas company's stock valued at $5,109,000 after purchasing an additional 650,988 shares during the last quarter. Kapitalo Investimentos Ltda grew its holdings in shares of Ultrapar Participacoes by 350.7% during the fourth quarter. Kapitalo Investimentos Ltda now owns 874,882 shares of the oil and gas company's stock worth $3,298,000 after purchasing an additional 680,782 shares during the last quarter. Renaissance Technologies LLC grew its holdings in shares of Ultrapar Participacoes by 10.6% during the first quarter. Renaissance Technologies LLC now owns 3,740,700 shares of the oil and gas company's stock worth $20,611,000 after purchasing an additional 357,922 shares during the last quarter. Banco BTG Pactual S.A. acquired a new position in shares of Ultrapar Participacoes in the fourth quarter valued at approximately $2,631,000. Finally, Dimensional Fund Advisors LP raised its holdings in Ultrapar Participacoes by 42.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 945,625 shares of the oil and gas company's stock valued at $5,210,000 after buying an additional 282,887 shares during the last quarter. Institutional investors own 3.58% of the company's stock.

About Ultrapar Participacoes

Ultrapar Participações SA is a Brazilian diversified holding company operating in the downstream energy and chemical sectors. Its Ipiranga unit runs one of Brazil's largest networks of fuel stations, supplying gasoline, ethanol, diesel and convenience-store products to retail and wholesale customers. Through Ultragaz, the company is a leading distributor of liquefied petroleum gas (LPG), offering cylinder and bulk gas solutions for residential, commercial and industrial use across urban and rural regions.

In the specialty chemicals arena, Ultrapar controls Oxiteno, which produces surfactants and specialty chemical formulations for industries such as personal care, oil and gas, agrochemicals and coatings.

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