Alert: Negative Investment/Fundamental Signals (9/3/19)-Ultrapar Participacoes SA (NYSE: UGP)


Recent exceptional negative changes in investment behavior have affected Ultrapar Participacoes SA (NYSE: UGP): negative upside/downside volume developed, and the stock fell on very heavy volume.

Recent notable negative changes in fundamentals have impacted Ultrapar Participacoes SA (NYSE: UGP). Negative developments: significant quarterly sales deceleration occurred, the consensus estimate for December, 2019 decreased significantly, and the consensus estimate for December, 2020 decreased significantly. Positive development: significant quarterly earnings acceleration occurred.

In light of these highly negative signals we are reviewing our current Overall Rating of D. We would continue to view the shares with caution pending completion of this review in the next several days.


Current PriceTarget Research Rating

UGP’s future returns on capital are forecasted to be above the cost of capital. Accordingly, the company is expected to continue to be a major Value Builder.

UGP has a current Value Trend Rating of D (Negative). With this rating, PTR’s two proprietary measures of a stock’s current attractiveness are providing inconsistent signals. UGP has a neutral Appreciation Score of 59 but a very low Power Rating of 12, with the Negative Value Trend Rating the result.

Recent Price Action

On 9/3/19, Ultrapar Participacoes SA (NYSE: UGP) stock enjoyed a large increase of 2.3%, closing at $4.09. Moreover, this advance was accompanied by exceptionally high trading volume at 206% of normal. Relative to the market the stock has been extremely weak over the last nine months but has risen 6.0% during the last week.

About John Lafferty 76994 Articles
During his career, John has developed valuation and stock rating methodologies, managed institutional portfolios and mutual funds, and provided equity research to institutional investors on thousands of companies. He has been Director of Research at PTR since its inception in 2004.

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