Ultrapar Participacoes S.A. (UGP) Price Action Raises Questions

The stock of Ultrapar Participacoes S.A. (NYSE:UGP) has been Upgraded to Neutral from Underperform by Credit Suisse in its latest research note that was published on May 03. JP Morgan, analysts launched coverage of UGP stock with a Neutral rating, according to their flash note to investors on March 22. Analysts at Goldman issued an upgrade fromNeutral to Buy for the stock, in a research note that dated back to August 16.

Ultrapar’s stock is covered by 3 analysts, with none of them rating the stock as Buy. It has been deemed to have strong buy by none of the analysts, 2 of them have rated it as a Hold while none of them rated it as sell. The situation was different a month ago when the stock was rated as a Buy by only none analysts. 1 of them rated it as strong buy with 2 of them recommended investors to Hold on to the stock. Meanwhile, 1 analyst(s) rated it as a sell. The above data shows that UGP has an average analyst rating of 3.33.

Ultrapar Participacoes S.A., which has current market capitalization of above $5 Billion, published its last quarter earnings on June 30, 2019. The company was able to amass $5534.41 million in revenue. This figure is $-294.34 million less than what analysts had expected, which was $5828.75 million.

UGP surged by $0.26 during the normal trading session on Tuesday and reaching a high of $4.26 during the day while it closed the day at $4.09. The Ultrapar stock had a low trading volume of 2.13 million shares on that day, which is low compared to the average daily volume of 984.22M shares. UGP has also gained 3.63% of its value over the past 7 days. However, the stock has declined by 23.52% in the 3 months of the year. Over the past six months meanwhile, it has lost 41.61% while it has lost 40.92% year-on date. Let us now take a look at the stock’s potential support and resistance levels. The publicly traded company was seen to have slipped by -28.75% from its 3 months high price. However, taking another look at UGP will indicate that it is trading +13.3% away from its 90-day low. Looking at the bigger picture, the Ultrapar Participacoes S.A. stock has dropped by -48.21% from its 52-week high while it has surged by +13.3% from its 52-week low price.

Ultrapar has around 742 Billion cash on their books at the moment. This figure will have to be compared and looked into, with their current liabilities standing at $1 Trillion. The Ultrapar stock is bringing in revenue of over 12 months, which is roughly 359 Billion. Despite all that, Ultrapar Participacoes S.A. is seeing things declining very much as their y-o-y quarterly revenue dropped by -11.65%.

Looking at the stock’s Technical analysis information over the past 50 days shows that its Raw Stochastic average stood at 23.19%. This figure is worse than the company’s 20-day Raw Stochastic average which currently stands at 34.78%. Over the past 20 days, Ultrapar’s Stochastic %K stood at 30.43% while its Stochastic %D was revealed to be 27.16%.