Ultrapar Participacoes S.A. (NYSE:UGP) Given Consensus Recommendation of "Buy" by Brokerages

Key Points

• Ultrapar Participacoes S.A. has a consensus recommendation of “Buy” from five research firms, with an average twelve-month target price of $3.20.
• Significant institutional investments have been made in Ultrapar, with Polunin Capital raising its stake by 8.9% and JPMorgan Chase increasing its stake by 75.2% in the second quarter.
• The company announced a semi-annual dividend of $0.0555 per share, resulting in a high dividend yield of 360.0%.

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report) has received an average recommendation of "Buy" from the five research firms that are currently covering the stock, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a buy rating and two have issued a strong buy rating on the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $3.20.

A number of equities research analysts have weighed in on UGP shares. Wall Street Zen raised Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a report on Friday. Scotiabank raised Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a report on Monday, July 28th.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Polunin Capital Partners Ltd raised its stake in shares of Ultrapar Participacoes by 8.9% in the second quarter. Polunin Capital Partners Ltd now owns 9,457,242 shares of the oil and gas company's stock valued at $31,398,000 after acquiring an additional 776,808 shares during the last quarter. American Century Companies Inc. raised its stake in shares of Ultrapar Participacoes by 42.4% in the second quarter. American Century Companies Inc. now owns 2,695,322 shares of the oil and gas company's stock valued at $8,841,000 after acquiring an additional 803,065 shares during the last quarter. JPMorgan Chase & Co. raised its stake in shares of Ultrapar Participacoes by 75.2% in the second quarter. JPMorgan Chase & Co. now owns 1,878,904 shares of the oil and gas company's stock valued at $6,163,000 after acquiring an additional 806,463 shares during the last quarter. Two Sigma Investments LP raised its stake in shares of Ultrapar Participacoes by 58.2% in the fourth quarter. Two Sigma Investments LP now owns 1,654,373 shares of the oil and gas company's stock valued at $4,351,000 after acquiring an additional 608,951 shares during the last quarter. Finally, Two Sigma Advisers LP raised its stake in shares of Ultrapar Participacoes by 18.9% in the fourth quarter. Two Sigma Advisers LP now owns 1,382,300 shares of the oil and gas company's stock valued at $3,635,000 after acquiring an additional 220,200 shares during the last quarter. Institutional investors own 3.58% of the company's stock.

Ultrapar Participacoes Stock Up 2.6%

UGP stock opened at $3.3650 on Friday. Ultrapar Participacoes has a twelve month low of $2.53 and a twelve month high of $4.38. The company has a market cap of $3.75 billion, a PE ratio of 7.48, a price-to-earnings-growth ratio of 3.24 and a beta of 1.05. The business's 50-day simple moving average is $3.14 and its 200 day simple moving average is $3.03. The company has a quick ratio of 1.26, a current ratio of 1.82 and a debt-to-equity ratio of 0.84.

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 paid a $0.0555 dividend. The ex-dividend date is Monday, August 25th. This represents a dividend yield of 360.0%. Ultrapar Participacoes's payout ratio is 31.11%.

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.

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