Ultrapar Participacoes S.A. (NYSE:UGP) Sees Significant Decline in Short Interest

Key Points

• Ultrapar Participacoes S.A. experienced a 43.4% decrease in short interest, dropping from 6,680,000 shares to 3,780,000 shares over July.
• The company's stock recently traded at $3.30, with a twelve-month low of $2.53 and a high of $4.51, while analysts maintain a consensus rating of "Buy" with an average price target of $3.20.
• Institutional investors have been actively adjusting their positions, with Sequoia Financial Advisors and GAMMA Investing increasing their stakes significantly in the first quarter of the year.

Ultrapar Participacoes S.A. (NYSE:UGP - Get Free Report) was the target of a large decrease in short interest in July. As of July 31st, there was short interest totaling 3,780,000 shares, adecreaseof43.4% from the July 15th total of 6,680,000 shares. Based on an average daily volume of 2,110,000 shares, the short-interest ratio is presently 1.8 days. Approximately0.4% of the company's stock are short sold. Approximately0.4% of the company's stock are short sold. Based on an average daily volume of 2,110,000 shares, the short-interest ratio is presently 1.8 days.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of UGP. Mercer Global Advisors Inc. ADV bought a new position in Ultrapar Participacoes in the 4th quarter worth approximately $29,000. CWM LLC boosted its holdings in Ultrapar Participacoes by 55.6% in the 1st quarter. CWM LLC now owns 9,463 shares of the oil and gas company's stock worth $29,000 after buying an additional 3,380 shares during the period. Franklin Resources Inc. bought a new position in Ultrapar Participacoes in the 4th quarter worth approximately $31,000. Wolverine Trading LLC bought a new position in Ultrapar Participacoes in the 4th quarter worth approximately $35,000. Finally, Regatta Capital Group LLC bought a new position in Ultrapar Participacoes in the 2nd quarter worth approximately $41,000. 3.58% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

UGP has been the subject of a number of recent analyst reports. Wall Street Zen raised shares of Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a research report on Friday. Scotiabank raised shares of Ultrapar Participacoes from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 28th. Two analysts have rated the stock with a Strong Buy rating and three have issued a Buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average target price of $3.20.

Ultrapar Participacoes Stock Performance

UGP traded up $0.0850 on Friday, hitting $3.3650. The company's stock had a trading volume of 1,266,455 shares, compared to its average volume of 1,724,336. The company's 50 day simple moving average is $3.14 and its 200-day simple moving average is $3.03. The firm has a market cap of $3.75 billion, a P/E ratio of 7.48, a price-to-earnings-growth ratio of 3.24 and a beta of 1.05. Ultrapar Participacoes has a 12 month low of $2.53 and a 12 month high of $4.38. 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 firm also recently disclosed a semi-annual dividend, which will be paid on Monday, September 8th. Investors of record on Monday, August 25th will be issued a $0.0555 dividend. The ex-dividend date of this dividend is Monday, August 25th. This represents a yield of 360.0%. Ultrapar Participacoes's dividend payout ratio (DPR) is 31.11%.

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.