Ultrapar Participacoes (NYSE:UGP) Shares Gap Up - Here's Why

Key Points

• Ultrapar Participacoes experienced a share price increase, opening at $3.31 after closing at $3.16, with the latest trade at $3.28 and a volume of 535,574 shares.
• Analysts are mixed on the stock, with Wall Street Zen downgrading it to "hold" while Scotiabank upgraded it to "strong-buy," resulting in a consensus average rating of "Buy" with a target price of $3.20.
• Institutional investors have increased their stakes significantly, with major boosts in holdings from firms like JPMorgan Chase & Co. and Renaissance Technologies LLC, highlighting growing institutional interest in the company.

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $3.16, but opened at $3.31. Ultrapar Participacoes shares last traded at $3.28, with a volume of 535,574 shares changing hands.

Analysts Set New Price Targets

Several research firms have recently issued reports on UGP. Scotiabank upgraded Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 28th. Wall Street Zen lowered Ultrapar Participacoes from a "buy" rating to a "hold" rating in a research note on Saturday, May 17th. Two investment analysts have rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company. According to data from MarketBeat, the company has an average rating of "Buy" and a consensus price target of $3.20.

Ultrapar Participacoes Stock Down 4.7%

The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.26 and a current ratio of 1.76. The firm's 50-day moving average is $3.12 and its two-hundred day moving average is $3.02. The stock has a market cap of $3.51 billion, a P/E ratio of 6.99, a PEG ratio of 3.26 and a beta of 1.05.

Ultrapar Participacoes Cuts Dividend

The company also recently announced a semi-annual dividend, which will be paid on Monday, September 8th. Stockholders of record on Monday, August 25th will be given a dividend of $0.0555 per share. The ex-dividend date is Monday, August 25th. This represents a dividend yield of 360.0%. Ultrapar Participacoes's payout ratio is presently 31.11%.

Institutional Trading of Ultrapar Participacoes

A number of institutional investors have recently bought and sold shares of UGP. Mercer Global Advisors Inc. ADV bought a new position in shares of Ultrapar Participacoes during the fourth quarter worth $29,000. CWM LLC raised its holdings in shares of Ultrapar Participacoes by 55.6% during the first quarter. CWM LLC now owns 9,463 shares of the oil and gas company's stock worth $29,000 after acquiring an additional 3,380 shares during the period. Wolverine Trading LLC acquired a new stake in shares of Ultrapar Participacoes during the fourth quarter worth $35,000. Regatta Capital Group LLC acquired a new stake in shares of Ultrapar Participacoes during the second quarter worth $41,000. Finally, Wealthquest Corp acquired a new stake in shares of Ultrapar Participacoes during the first quarter worth $45,000. Institutional investors and hedge funds own 3.58% of the company's stock.

Ultrapar Participacoes Company Profile

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.