UGI (NYSE:UGI) Trading Up 12.7% – Here’s What Happened

UGI Corporation (NYSE:UGI) traded up 12.7% during trading on Tuesday . The stock traded as high as $37.20 and last traded at $39.5290. 285,910 shares changed hands during trading, a decline of 84% from the average daily volume of 1,800,441 shares. The stock had previously closed at $35.09.

UGI News Roundup

Here are the key news stories impacting UGI this week:

• Positive Sentiment: Takeover speculation is supporting UGI’s stock because a potential cash acquisition could deliver a premium to shareholders. Reports describe KKR’s proposal as an offer for the Pennsylvania-based natural gas and electricity distributor, although the bid remains subject to negotiations and due diligence. MarketWatch report on UGI shares and KKR
• Positive Sentiment: UGI’s underlying outlook provides additional support for the valuation: management recently reaffirmed fiscal 2026 adjusted diluted EPS guidance of $2.75 to $2.90 and highlighted a proposed Pennsylvania gas-rate settlement that could provide a two-step, $65 million increase if approved.
• Neutral Sentiment: The deal is not yet certain. The reported proposal is unsolicited, and UGI has not announced a completed transaction; therefore, the recent gains may reverse if the offer is rejected, withdrawn, or fails to progress. Benzinga report on UGI’s unsolicited buyout offer
• Negative Sentiment: UGI’s latest reported quarter was weaker than expected, with revenue of $1.33 billion versus a $1.50 billion consensus estimate and a loss of $0.20 per share compared with an expected loss of $0.08. The results could limit investor enthusiasm if takeover discussions fade.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on UGI. Wall Street Zen cut UGI from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Weiss Ratings downgraded shares of UGI from a “buy (b)” rating to a “hold (c+)” rating in a research report on Tuesday, August 11th. Zacks Research lowered shares of UGI from a “hold” rating to a “strong sell” rating in a research note on Monday, July 13th. Jefferies Financial Group restated a “hold” rating and issued a $40.00 price target (down from $45.00) on shares of UGI in a report on Thursday, April 30th. Finally, Wells Fargo & Company decreased their price target on shares of UGI from $45.00 to $42.00 and set an “overweight” rating for the company in a research note on Friday, August 7th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $42.00.

UGI Price Performance

The business has a 50-day moving average price of $35.57 and a two-hundred day moving average price of $36.16. The company has a quick ratio of 1.22, a current ratio of 1.44 and a debt-to-equity ratio of 1.28. The company has a market capitalization of $8.27 billion, a price-to-earnings ratio of 12.89 and a beta of 0.93.

UGI (NYSE:UGI) last posted its quarterly earnings results on Thursday, August 6th. The utilities provider reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.12). UGI had a net margin of 9.20% and a return on equity of 12.80%. The business had revenue of $1.33 billion during the quarter, compared to analyst estimates of $1.50 billion. As a group, research analysts anticipate that UGI Corporation will post 2.85 EPS for the current year.

UGI Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be given a dividend of $0.375 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.50 annualized dividend and a dividend yield of 3.9%. UGI’s payout ratio is presently 50.17%.

Insider Buying and Selling at UGI

In related news, insider Kathleen Shea-Ballay sold 25,360 shares of the firm’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $33.62, for a total value of $852,603.20. Following the transaction, the insider owned 25,360 shares of the company’s stock, valued at approximately $852,603.20. This trade represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.57% of the stock is owned by corporate insiders.

Institutional Trading of UGI

Several institutional investors and hedge funds have recently modified their holdings of UGI. Aberdeen Wealth Management LLC bought a new stake in UGI during the second quarter worth $42,000. Versant Capital Management Inc lifted its stake in UGI by 45.6% during the 2nd quarter. Versant Capital Management Inc now owns 1,268 shares of the utilities provider’s stock valued at $44,000 after acquiring an additional 397 shares in the last quarter. Northwestern Mutual Wealth Management Co. purchased a new position in UGI during the 2nd quarter worth $53,000. Torren Management LLC purchased a new position in UGI during the 4th quarter worth $65,000. Finally, Persistent Asset Partners Ltd bought a new stake in shares of UGI in the 2nd quarter worth $71,000. 82.34% of the stock is owned by hedge funds and other institutional investors.

About UGI

UGI Corporation (NYSE: UGI) is a publicly traded energy distribution company headquartered in King of Prussia, Pennsylvania. Founded in 1882 as the United Gas Improvement Company, UGI has grown into a diversified provider of energy products and services. The company’s operations are organized into three primary segments—AmeriGas Propane, UGI Utilities and UGI International—each focused on the delivery of propane, natural gas and related services to residential, commercial and industrial customers.

AmeriGas Propane, UGI’s largest segment, is the leading retail propane distributor in the United States with a network of dealers serving customers in all 50 states.