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

Key Points

• Ultrapar Participacoes recently reached a new 52-week high of $4.05, signaling strong trading performance with an average price target of $3.20 and a consensus rating of "Buy" from analysts.
• Institutional investors have significantly increased their holdings in Ultrapar, with notable purchases from Sequoia Financial Advisors and Jane Street Group, reflecting growing confidence in the company.
• The company has announced a semi-annual dividend with a yield of 360.0%, although it has recently cut the dividend payout ratio to 22.22%, indicating a potential shift in financial strategy.

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report) shares hit a new 52-week high during trading on Tuesday . The company traded as high as $4.05 and last traded at $4.02, with a volume of 388484 shares changing hands. The stock had previously closed at $3.88.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on UGP shares. Scotiabank upgraded shares of Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 28th. Wall Street Zen upgraded shares of Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 22nd. Two research analysts have rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and an average price target of $3.20.

Ultrapar Participacoes Stock Performance

The firm has a market cap of $4.49 billion, a P/E ratio of 8.94, a P/E/G ratio of 2.11 and a beta of 1.10. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.38 and a current ratio of 1.82. The company's 50 day moving average is $3.36 and its 200 day moving average is $3.16.

Ultrapar Participacoes Cuts Dividend

The company also recently disclosed a semi-annual dividend, which was paid on Monday, September 8th. Stockholders of record on Monday, August 25th were given a dividend of $0.0555 per share. The ex-dividend date was Monday, August 25th. This represents a dividend yield of 360.0%. Ultrapar Participacoes's dividend payout ratio is 22.22%.

Institutional Investors Weigh In On Ultrapar Participacoes

A number of large investors have recently bought and sold shares of UGP. Sequoia Financial Advisors LLC raised its position in shares of Ultrapar Participacoes by 61.3% in the first quarter. Sequoia Financial Advisors LLC now owns 52,395 shares of the oil and gas company's stock valued at $161,000 after purchasing an additional 19,918 shares during the period. GAMMA Investing LLC raised its position in shares of Ultrapar Participacoes by 92.9% in the first quarter. GAMMA Investing LLC now owns 17,413 shares of the oil and gas company's stock valued at $54,000 after purchasing an additional 8,388 shares during the period. Jane Street Group LLC raised its position in shares of Ultrapar Participacoes by 200.9% in the fourth quarter. Jane Street Group LLC now owns 146,591 shares of the oil and gas company's stock valued at $386,000 after purchasing an additional 97,879 shares during the period. Bank of America Corp DE raised its position in shares of Ultrapar Participacoes by 33.5% in the fourth quarter. Bank of America Corp DE now owns 986,220 shares of the oil and gas company's stock valued at $2,594,000 after purchasing an additional 247,755 shares during the period. Finally, Raiffeisen Bank International AG bought a new stake in shares of Ultrapar Participacoes in the first quarter valued at approximately $831,000. 3.58% of the stock is currently owned by institutional investors and hedge funds.

About Ultrapar Participacoes

Ultrapar Participações SA, through its subsidiaries, operates in the energy and infrastructure business in Brazil. The company distributes liquefied petroleum gas to residential, commercial, and industrial consumers, in addition to renewable electricity and compressed natural gas. It also operates in the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants; and holds AmPm convenience stores and provides JetOil lubricant services.

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