Investors in cash trouble should check out Ultrapar Participacoes S.A. (UGP)

Ultrapar Participacoes S.A. (NYSE: UGP) stock jumped 3.25% on Tuesday to $2.54 against a previous-day closing price of $2.46. With 1.7 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.48 million shares. During the session, the Oil & Gas Refining & Marketing company that operates in wider Energy sector, reached to the highest price of $2.5700 whereas the lowest price it dropped to was $2.4700. The 52-week range on UGP shows that it touched its highest point at $3.12 and its lowest point at $2.13 during that stretch. It currently has a 1-year price target of $3.15. With its current market cap of 2.86 billion, UGP has annualized dividend of $0.15 while the current yield stands at 6.02%. Beta for the stock currently stands at 1.20.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UGP was up-trending over the past week, with a rise of 0.79%, but this was up by 4.53% over a month. Three-month performance dropped to -5.22% while six-month performance rose 5.39%. The stock gained 3.29% in the past year, while it has gained 4.96% so far this year. A look at the trailing 12-month EPS for UGP yields 0.21 with Next year EPS estimates of 0.24. For the next quarter, that number is 0.02. This implies an EPS growth rate of 28.00% for this year and 33.30% for next year. EPS is expected to grow by 24.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -12.90%.

Float and Shares Shorts:

At present, 1.09 billion UGP shares are outstanding with a float of 750.31 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.94 million, which was 0.45% higher than short shares on Sep 14, 2022. In addition to Mr. Marcos Marinho Lutz as the firm’s CEO & Member of the Exec. Board, Mr. Rodrigo de Almeida Pizzinatto serves as its Chief Financial & Investor Relations Officer and Member of Exec. Board.

Institutional Ownership:

Through their ownership of 3.26% of UGP’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 2.76% of UGP, in contrast to 0.88% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in UGP with 1.50% of the stake, Bizma Investimentos Ltda. holds 16,708,667 shares worth 16,708,667. A second-largest stockholder of UGP, BlackRock Fund Advisors, holds 3,491,048 shares, controlling over 0.31% of the firm’s shares. Arrowstreet Capital LP is the third largest shareholder in UGP, holding 2,440,504 shares or 0.22% stake. With a 0.16% stake in UGP, the iShares Tr. – Global Infrastructu is the largest stakeholder. A total of 1,823,007 shares are owned by the mutual fund manager. The Genesis Emerging Markets Investme, which owns about 0.14% of UGP stock, is the second-largest Mutual Fund holder. It holds 1,562,630 shares valued at 3.78 million. CS Invt. Fds. 2 – holds 0.12% of the stake in UGP, owning 1,300,000 shares worth 3.15 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UGP since 10 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With UGP analysts setting a high price target of $4.45 and a low target of $2.63, the average target price over the next 12 months is $3.23. Based on these targets, UGP could surge 75.2% to reach the target high and rise by 3.54% to reach the target low. Reaching the average price target will result in a growth of 27.17% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. UGP will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of $0.21 being high and $0.13 being low. For UGP, this leads to a yearly average estimate of $0.18. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ultrapar Participacoes S.A. surprised analysts by -$0.01 when it reported $0.01 EPS against a consensus estimate of $0.02. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.05 and the low estimate is $0.02. The average estimate for the next quarter is thus $0.03.

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