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.

Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.

Sponsored

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.

Leave a Comment

Your email address will not be published. Required fields are marked *