Ultrapar Participacoes (NYSE:UGP) Sets New 1-Year High - Should You Buy?

Key Points

• Ultrapar Participacoes hit a new 52-week high, trading as high as $6.22 after opening at $6.08. The move signals strong recent momentum in the stock.
• Analyst sentiment is mixed but generally constructive, with an average rating of “Moderate Buy” and an average price target of $6.32. Recent moves included Bank of America upgrading the stock to buy and UBS lifting its target to $7.20.
• The company’s valuation and operating profile show moderate leverage and solid liquidity, with a P/E ratio of 12.53, a debt-to-equity ratio of 0.89, and a market cap of about $6.99 billion. Institutional ownership remains relatively low at 3.58%.

Shares of Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report) hit a new 52-week high during trading on Thursday . The stock traded as high as $6.22 and last traded at $6.1950, with a volume of 796636 shares traded. The stock had previously closed at $6.08.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. HSBC downgraded Ultrapar Participacoes from a "buy" rating to a "hold" rating and upped their price objective for the stock from $4.90 to $6.00 in a report on Wednesday, April 8th. Bank of America upgraded Ultrapar Participacoes from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $6.80 to $7.40 in a report on Wednesday, July 8th. Wall Street Zen upgraded Ultrapar Participacoes from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 9th. UBS Group raised their price target on shares of Ultrapar Participacoes from $7.00 to $7.20 and gave the company a "buy" rating in a report on Wednesday, June 17th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Ultrapar Participacoes in a research note on Monday, June 8th. Two research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $6.32.

Ultrapar Participacoes Stock Performance

The company has a debt-to-equity ratio of 0.89, a current ratio of 1.67 and a quick ratio of 1.30. The stock has a 50-day moving average price of $5.33 and a 200-day moving average price of $5.14. The firm has a market capitalization of $6.99 billion, a PE ratio of 12.53, a price-to-earnings-growth ratio of 0.53 and a beta of 0.71.

Institutional Trading of Ultrapar Participacoes

Several institutional investors and hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd bought a new stake in shares of Ultrapar Participacoes in the 4th quarter valued at approximately $32,000. EverSource Wealth Advisors LLC lifted its stake in 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 worth $35,000 after purchasing an additional 1,982 shares during the last quarter. SG Americas Securities LLC bought a new position in Ultrapar Participacoes during the fourth quarter worth $44,000. GeoWealth Management LLC acquired a new position in Ultrapar Participacoes in the fourth quarter worth $44,000. Finally, EP Wealth Advisors LLC acquired a new position in Ultrapar Participacoes in the fourth quarter worth $45,000. Institutional investors and hedge funds own 3.58% of the company's stock.

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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