Digging Up the Details on Ultrapar Participacoes S.A. (UGP)

On Tuesday, shares of Ultrapar Participacoes S.A. (NYSE:UGP) marked $4.51 per share versus a previous $4.45 closing price. With having a 1.35% gain, an insight into the fundamental values of Ultrapar Participacoes S.A., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. UGP showed a fall of -33.38% within its YTD performance, with highs and lows between $3.61 – $7.90 during the period of 52 weeks, compared to the simple moving average of -21.24% in the period of the last 200 days.

Goldman equity researchers changed the status of Ultrapar Participacoes S.A. (NYSE: UGP) shares to a “Neutral” rating in the report published on October 3rd, 2019. Other analysts, including Credit Suisse, also published their reports on UGP shares. Credit Suisse repeated the rating from the previous report, marking UGP under “Neutral” rating, in the report published on May 3rd, 2019. Additionally, UGP shares got another “Neutral” rating from JP Morgan. On the other hand, Citigroup Upgrade the “Buy” rating for UGP shares, as published in the report on June 11th, 2018. HSBC Securities seems to be going bullish on the price of UGP shares, based on the price prediction for UGP. Another “Underperform” rating came from BofA/Merrill.

Ultrapar Participacoes S.A. (UGP) Analysis

The present dividend yield for UGP owners is set at 0.03, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Ultrapar Participacoes S.A., the company needs to provide a healthy cash flow, currently at the value of 9.92. In addition, the growth of sales from quarter to quarter is recording -4.20%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Ultrapar Participacoes S.A. (UGP) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 12.40% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 2.40 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while UGP is currently recording an average of 1.08M in volumes. The volatility of the stock on monthly basis is set at 3.60%, while the weekly volatility levels are marked at 3.49%with -2.17% of loss in the last seven days. Additionally, long-term investors are predicting the target price of $4.93, indicating growth from the present price of $4.51, which can represent yet another valuable research and analysis points that can help you decide whether to invest in UGP or pass.

What to Look for When Analyzing Ultrapar Participacoes S.A. Shares?

Ultrapar Participacoes S.A. (UGP) is based in the Brazil and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare UGP shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 18.87 for Ultrapar Participacoes S.A., while the value 17.97 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 0.24 is supported by the yearly ESP growth of -24.60%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 26.80%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts 3.70% of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in UGP Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in UGP in the recent period. That is how Renaissance Technologies LLC now has an increase position in UGP by 4.83% in the first quarter, owning 8.16 million shares of UGP stocks, with the value of $36.48 million after the purchase of an additional 376,220 shares during the last quarter. In the meanwhile, BlackRock Fund Advisors also increased their stake in UGP shares changed 47.67% in the first quarter, which means that the company now owns 4.27 million shares of company, all valued at $19.08 million after the acquisition of additional 1,377,739 shares during the last quarter.

CIBC Private Wealth Advisors, Inc acquired a new position in Ultrapar Participacoes S.A. during the first quarter, with the value of $15.96 million, and Millennium Management LLC increased their stake in the company’s shares by 23.64% in the first quarter, now owning 357,114 shares valued at $8.35 million after the acquisition of the additional 1.87 million shares during the last quarter. In the end, Dimensional Fund Advisors LP increased their position by 213.22% during the first quarter, now owning 1.32 million UGP shares, now holding the value of $5.9 million in UGP with the purchase of the additional 161,598 shares during the period of the last quarter. At the present, 3.70% of UGP shares are in the ownership of institutional investors.