Ultrapar Participacoes S.A. (NYSE:UGP) is -0.15 points lower today and the only thing that matters is where they go from here. You simply have to look deeper than the share price and explore the fundamentals and future growth potential. The stock value has plummeted by nearly -2.96% to $4.91 from its previous close of $5.06. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 483258 contracts so far this session. UGP shares had a relatively better volume day versus average trading capacity of 1.44 million shares, but with a 0.79 billion float and a -8.17% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for UGP stock indicates that the average analyst price target is $7.6 per share. This means the stock has a potential increase of 54.79% from where the UGP share price has been trading recently which is between $5.03 and $5.15. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $5.5.
The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Ultrapar Participações S.A. (UGP) Q4 2019 Earnings Call Transcript” and dated May 16, 2019.
During the recent trading session for Ultrapar Participacoes S.A. (NYSE:UGP), the company witnessed their stock drop by $-0.58 over a week and tumble down $-0.83 from the price 20 days ago. When compared to their established 52-week high of $7.9, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 01/31/19. The recent low of $4.43 stood for a -37.83% since 09/25/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.27 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Ultrapar Participacoes S.A., the two-week RSI stands at 27.41. This figure suggests that UGP stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current UGP readings is similarly very revealing as it has a stochastic reading of 16.55% at this stage. This figure means that UGP share price today is being overbought.
Technical chart claims that Ultrapar Participacoes S.A. (UGP) would settle between $5.13/share to $5.2/share level. However, if the stock price goes below the $5.01 mark, then the market for Ultrapar Participacoes S.A. becomes much weaker. If that happens, the stock price might even plunge as low as $4.96 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.22. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Credit Suisse raised their recommendation on shares of UGP from Underperform to Neutral in their opinion released on May 03. JP Morgan, analysts launched coverage of Ultrapar Participacoes S.A. (NYSE:UGP) stock with a Neutral recommendation, according to their flash note issued to investors on March 22. Analysts at Goldman released an upgrade from Neutral to Buy for the stock, in a research note that dated back to August 16.
UGP equity has an average rating of 2.5, with the figure leaning towards a bullish end. 4 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 2 analysts rated Ultrapar Participacoes S.A. (NYSE:UGP) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, UGP stock price is currently trading at 12.4X forward 12-month Consensus EPS estimates, and its P/S ratio is 0.57 while for the average stock in the same group, the multiple is 1.1. Ultrapar Participacoes S.A. current P/E ratio of 29.48 means it is trading at a premium against its industry’s 22.43. In the past 5 years, this ratio for the stock has been fluctuating between 22.01 and 24.46.