Ultrapar Participacoes SA UGP Stock Analysis

Ultrapar Participacoes SA stock trades under the ticker UGP & has shown recent bullishness, despite broader market volatility, making it worth taking a closer look at.

UGP stock closed at $2.50/share on 1/20/2022.

Ultrapar Participacoes SA UGP Stock’s Technicals Broken Down

Ultrapar Participacoes SA UGP Stock's Technical Performance Over The Last Year

UGP Stock Price: $2.50

10 Day Moving Average: $2.39

50 Day Moving Average: $2.51

200 Day Moving Average: $3.10

RSI: 51.8

MACD: -0.036

UGP stock completed a bullish MACD crossover yesterday, on a 2% gap up to close just under their 50 Day Moving Average.

Yesterday’s price jump came as a result of above average trading volume.

Their RSI is neutral, signaling that once they make the bullish MA cross there will be additional momentum to push their price higher.

UGP’s next resistance test is at the $2.60-level.

Ultrapar Participacoes SA UGP Stock As A Long-Term Investment

Long-term oriented investors may find UGP’s valuation metrics appealing, with a P/E(ttm) of 18.58 & a P/B (mrq) of 1.69.

UGP has a 1.09 Beta, showing that it tends to move about in line with major market indexes.

They experienced 53.7% Quarterly Revenue Growth Y-o-Y.

UGP’s balance sheet is worth taking a finer comb through, as they have $5.74B in Total Cash (mrq) & $18.23B in Total Debt (mrq), which investors should want to know more about before buying.

UGP stock’s dividend yield is 4.76%, with a 77% Payout Ratio, which is something else for investors to be alert of, as their ratio is high.

Only 2% of all outstanding shares of UGP stock are held by institutional investors.

Ultrapar Participacoes SA UGP Stock As A Short-Term Trade Using Options

Short-term oriented traders can take advantage of UGP stock’s current momentum while hedging against volatility by using options.

I am looking at the contracts with the 2/18 expiration date.

The $2.50 & $5 call options look interesting, with low open interest on the former, but a decent amount of liquidity for the latter.

There is no open interest for their puts at the moment, which will likely change on Monday as today is an expiration date & investors will want them to hold as hedges against their investment during this volatile period.

Tying It All Together

All-in-all, UGP stock looks to have many appealing characteristics.

Their valuation metrics look appealing, as well as their ~5% dividend yield, although their balance sheet may be worth taking a closer peek into.

UGP’s current momentum looks set to continue in the near-term, creating profit opportunities for traders.

UGP stock is worth taking a closer look at for traders & investors alike!

*** I DO NOT OWN SHARES OF UGP STOCK ***