Ultrapar Participacoes (NYSE:UGP) Reaches New 1-Year High on Strong Earnings

Key Points

• Ultrapar hit a new 52-week high after reporting an EPS beat of $0.15 versus consensus $0.14, with the stock trading as high as $6.16 and last at $5.9650 on heavy volume.
• Despite the EPS beat, revenue came in below estimates at $7.07 billion versus $7.49 billion, while the company showed a ROE of 14.11% and a net margin of 1.72%, suggesting profit strength amid top-line weakness.
• The analyst mix is mixed but mildly positive: MarketBeat shows a consensus rating of "Moderate Buy" with a $6.00 price target, while recent notes range from downgrades to new coverage (UBS initiated at Buy with a $7.00 target).

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report) hit a new 52-week high during trading on Thursday following a stronger than expected earnings report. The company traded as high as $6.16 and last traded at $5.9650, with a volume of 452971 shares traded. The stock had previously closed at $5.99.

The oil and gas company reported $0.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.14 by $0.01. Ultrapar Participacoes had a return on equity of 14.11% and a net margin of 1.72%.The business had revenue of $7.07 billion during the quarter, compared to analyst estimates of $7.49 billion.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. HSBC cut shares of Ultrapar Participacoes from a "buy" rating to a "hold" rating and lifted their price objective for the company from $4.90 to $6.00 in a research note on Wednesday, April 8th. Jefferies Financial Group raised shares of Ultrapar Participacoes from an "underperform" rating to a "hold" rating and raised their target price for the company from $3.10 to $5.60 in a research note on Friday, March 13th. The Goldman Sachs Group downgraded shares of Ultrapar Participacoes from a "buy" rating to a "neutral" rating and set a $5.40 price target on the stock. in a research report on Thursday, February 5th. UBS Group started coverage on shares of Ultrapar Participacoes in a research note on Tuesday, April 28th. They issued a "buy" rating and a $7.00 price target for the company. Finally, Wall Street Zen downgraded Ultrapar Participacoes from a "strong-buy" rating to a "buy" rating in a research report on Saturday, March 7th. Two analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $6.00.

Institutional Investors Weigh In On Ultrapar Participacoes

A number of institutional investors and hedge funds have recently modified their holdings of UGP. Caitong International Asset Management Co. Ltd bought a new stake in shares of Ultrapar Participacoes during the 4th quarter worth $32,000. SG Americas Securities LLC purchased a new stake in shares of Ultrapar Participacoes during the fourth quarter valued at $44,000. GeoWealth Management LLC acquired a new position in shares of Ultrapar Participacoes in the 4th quarter valued at $44,000. EP Wealth Advisors LLC purchased a new position in Ultrapar Participacoes in the 4th quarter worth about $45,000. Finally, Boothbay Fund Management LLC purchased a new position in Ultrapar Participacoes in the 4th quarter worth about $47,000. Institutional investors and hedge funds own 3.58% of the company's stock.

Ultrapar Participacoes Trading Down 0.4%

The company has a current ratio of 1.62, a quick ratio of 1.26 and a debt-to-equity ratio of 0.97. The stock has a market cap of $6.65 billion, a price-to-earnings ratio of 14.91, a P/E/G ratio of 1.13 and a beta of 0.77. The company has a fifty day simple moving average of $5.47 and a 200-day simple moving average of $4.67.

Ultrapar Participacoes Company Profile

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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