Market Analysts see UGI Corporation [UGI] falling to $27. Time to buy?

UGI Corporation [NYSE: UGI] loss -0.94% or -0.22 points to close at $23.12 with a heavy trading volume of 2530689 shares. The company report on August 30, 2023 at 5:00 PM that UGI Corporation Announces Review of Strategic Alternatives.

UGI Corporation (NYSE: UGI) announced today that its Board of Directors has initiated a process to evaluate potential strategic alternatives with the intent to unlock and maximize shareholder value. In consultation with financial and legal advisors, the strategic review, focused on the LPG businesses, will consider a range of strategic, operational and financial alternatives. The company is exploring a full range of options with the goal of reducing UGI’s earnings volatility and strengthening its balance sheet. Embedded within the review will also be actions to optimize the company’s cost structure and re-align its capital allocation priorities.

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UGI has engaged Goldman Sachs & Co. LLC and J.P. Morgan Securities, LLC as advisors in its review of strategic alternatives. There is no assurance that the strategic review process will result in the approval or completion of any specific transaction or outcome.

It opened the trading session at $23.25, the shares rose to $23.40 and dropped to $23.00, the range by which the price of stock traded the whole day. The daily chart for UGI points out that the company has recorded -37.61% loss over the past six months. However, it is still -3.03% lower than its most recent low trading price.

If we look at the average trading volume of 2.44M shares, UGI reached to a volume of 2530689 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about UGI Corporation [UGI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UGI shares is $36.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UGI stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wells Fargo have made an estimate for UGI Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on August 28, 2023.

The Average True Range (ATR) for UGI Corporation is set at 0.64, with the Price to Sales ratio for UGI stock in the period of the last 12 months amounting to 0.51. The Price to Book ratio for the last quarter was 1.16, with the Price to Cash per share for the same quarter was set at 1.24.

Trading performance analysis for UGI stock

UGI Corporation [UGI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.14. With this latest performance, UGI shares dropped by -12.69% in over the last four-week period, additionally sinking by -37.61% over the last 6 months – not to mention a drop of -42.10% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UGI stock in for the last two-week period is set at 37.96, with the RSI for the last a single of trading hit 40.39, and the three-weeks RSI is set at 37.54 for UGI Corporation [UGI]. The present Moving Average for the last 50 days of trading for this stock 25.40, while it was recorded at 22.99 for the last single week of trading, and 32.92 for the last 200 days.

UGI Corporation [UGI]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and UGI Corporation [UGI] shares currently have an operating margin of +4.43 and a Gross Margin at +24.15. UGI Corporation’s Net Margin is presently recorded at +10.61.

Return on Total Capital for UGI is now 3.42, given the latest momentum, and Return on Invested Capital for the company is 8.58. Return on Equity for this stock inclined to 18.52, with Return on Assets sitting at 6.26. When it comes to the capital structure of this company, UGI Corporation [UGI] has a Total Debt to Total Equity ratio set at 121.60. Additionally, UGI Total Debt to Total Capital is recorded at 54.87, with Total Debt to Total Assets ending up at 41.97. Long-Term Debt to Equity for the company is recorded at 114.79, with the Long-Term Debt to Total Capital now at 50.42.

Reflecting on the efficiency of the workforce at the company, UGI Corporation [UGI] managed to generate an average of $228,298 per employee. Receivables Turnover for the company is 8.79 with a Total Asset Turnover recorded at a value of 0.59.UGI Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.00.

UGI Corporation [UGI]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UGI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for UGI Corporation go to 5.75%.

An analysis of Institutional ownership at UGI Corporation [UGI]

The top three institutional holders of UGI stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in UGI stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in UGI stock with ownership which is approximately 5.7381%.

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