Ultrapar Participacoes S.A. (UGP) Is Rebalancing, Another Reason For Caution

For most investors, the 0.18% change in Ultrapar Participacoes S.A., (UGP) could have prompted them to buy the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed December 13, 2019 trading at $5.43 which saw uptrend of -19.79% since the beginning of 2019. The price of the stock has risen by 2.39% from average 12-month price target of $5.56 expected by the analysts. Most analysts believed that the stock has the potential to rise by 23.2% or more. For Ultrapar Participacoes S.A. to record further gain analysts believe that the company has to hit $6.69 price target. The high price target for UGP for next 12 months currently stands at $6.69. This means that the highest 12 months price target is 23.2% above its last closing price. The median price target for the stock over the next 12 months is $5.22, which means that it could rise by -3.87% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $4.83 for the stock which means it could rise by -11.05%.

A look at the UGP stock today shows that it has lost -13.95% of its value over the past one year, which has led to some investors becoming concerned about the short-term performance of Ultrapar Participacoes S.A. (NYSE:UGP). If we turn to the stock analysts in general, they revealed that most of them are still bearish about the chances of the shares. The consensus rating from analysts for Ultrapar Participacoes S.A. (UGP) is 3 which is a sell rating. Over the past week, the stock has been rated as a Buy 1 times while it has been rated as a Hold 1 times. The 52-week high price for UGP is $7.9 which is attained on January 31 while its 52-week low currently stands at $3.61 and was reached on August 27. At the moment, the stock is trading $-0.11 below its YTD moving average set at $5.54.

In order to determine if the stock is worthy of your patience, you should know that Ultrapar Participacoes S.A. (NYSE:UGP) is now trading at 24.03X the earnings per share recorded over the past 12 months. This is an uptrend compared to the readings of the sector which is 17.21X while the industry average stands at 15.75X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Ultrapar Participacoes S.A. was able to achieve an EPS of $0.23 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Friday, December 13 of 2019, the 14-day Absolute ATR (Average True Range) for UGP moved by $0.15. Over the past seven days, the stock’s average daily volatility stood at 1.99%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Ultrapar Participacoes S.A.’s trading volume has recently moved to 1.44 million, which is compared with the average daily volume of 1.02 million shares.

The daily chart for UGP, points out that the company has recorded -0.55% losses over the past six months. However, it is still 50.42% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 4.62% though it is 5.78% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 11.07% while it is up 4.67% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of UGP reveals that it has gained some grounds as it ended Friday with a 13.12% rise over the past 30 days.