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

Key Points

• Ultrapar Participacoes S.A. has received a consensus rating of "Buy" from five brokerages, with three analysts giving a buy rating and two a strong buy rating, setting an average 1-year target price of $3.20.
• Several hedge funds have recently increased their holdings in Ultrapar, with CWM LLC raising its position by 55.6% in the first quarter.
• The company declared a recent semi-annual dividend of $0.0555 per share, equating to a yield of 360.0%, although its dividend payout ratio stands at 22.22%.

Shares of Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report) have earned a consensus recommendation of "Buy" from the five brokerages that are currently covering the company, MarketBeat Ratings reports. Three equities research analysts have rated the stock with a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $3.20.

A number of analysts recently weighed in on UGP shares. Scotiabank raised shares of Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 28th. Wall Street Zen raised shares of Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 22nd.

Hedge Funds Weigh In On Ultrapar Participacoes

A number of large investors have recently modified their holdings of UGP. CWM LLC lifted its position 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 purchasing an additional 3,380 shares in the last quarter. Wolverine Trading LLC acquired a new position in shares of Ultrapar Participacoes during the fourth quarter worth approximately $35,000. Regatta Capital Group LLC acquired a new position in shares of Ultrapar Participacoes during the second quarter worth approximately $41,000. Wealthquest Corp acquired a new position in shares of Ultrapar Participacoes during the first quarter worth approximately $45,000. Finally, Ballentine Partners LLC acquired a new position in Ultrapar Participacoes in the first quarter valued at approximately $45,000. 3.58% of the stock is currently owned by institutional investors and hedge funds.

Ultrapar Participacoes Price Performance

NYSE UGP traded down $0.10 on Wednesday, reaching $3.89. The company's stock had a trading volume of 1,195,624 shares, compared to its average volume of 1,457,306. The firm has a market cap of $4.33 billion, a PE ratio of 8.63, a price-to-earnings-growth ratio of 3.93 and a beta of 1.11. The business has a 50-day moving average price of $3.34 and a 200 day moving average price of $3.15. Ultrapar Participacoes has a 52 week low of $2.53 and a 52 week high of $4.05. The company has a current ratio of 1.82, a quick ratio of 1.38 and a debt-to-equity ratio of 0.84.

Ultrapar Participacoes Cuts Dividend

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

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.