Ultrapar Participacoes S.A. (NYSE:UGP) Announces $0.19 Dividend

Key Points

• Ultrapar Participacoes declared a $0.1932-per-share dividend, payable September 14 to shareholders of record on August 26; the ex-dividend date is also August 26.
• The dividend appears supported by earnings, with a current payout ratio of 57.1% and an expected future payout ratio of 35.1% based on projected earnings of $0.57 per share.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $6.32. UBS and Bank of America recently raised their targets to $7.20 and $7.40, respectively, while shares recently traded at $6.08.

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report) declared a dividend on Thursday, August 13th. Shareholders of record on Wednesday, August 26th will be given a dividend of 0.1932 per share by the oil and gas company on Monday, September 14th. This represents a yield of 634.0%. The ex-dividend date of this dividend is Wednesday, August 26th.

Ultrapar Participacoes has raised its dividend by an average of 0.4%annually over the last three years. Ultrapar Participacoes has a dividend payout ratio of 57.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect Ultrapar Participacoes to earn $0.57 per share next year, which means the company should continue to be able to cover its $0.20 annual dividend with an expected future payout ratio of 35.1%.

Ultrapar Participacoes Price Performance

NYSE UGP traded down $0.07 during trading on Friday, reaching $6.08. The company's stock had a trading volume of 1,994,487 shares, compared to its average volume of 3,007,044. The stock has a market capitalization of $6.79 billion, a PE ratio of 12.17, a P/E/G ratio of 0.35 and a beta of 0.70. 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 firm has a fifty day moving average of $5.62 and a 200 day moving average of $5.48. Ultrapar Participacoes has a one year low of $3.11 and a one year high of $6.59.

Analysts Set New Price Targets

A number of brokerages recently weighed in on UGP. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Ultrapar Participacoes in a research note on Monday, June 8th. UBS Group boosted their price target on shares of Ultrapar Participacoes from $7.00 to $7.20 and gave the stock a "buy" rating in a research note on Wednesday, June 17th. Wall Street Zen raised shares of Ultrapar Participacoes from a "buy" rating to a "strong-buy" rating in a report on Saturday, May 9th. Finally, Bank of America upgraded shares of Ultrapar Participacoes from a "neutral" rating to a "buy" rating and raised their price objective for the company from $6.80 to $7.40 in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $6.32.

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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