Hedge funds have long been a favored investment vehicle for high net worth individuals and institutions looking to diversify or enhance their portfolio returns, providing sophisticated investment strategies unavailable to the average investor. One such hedge fund, HRT Financial LP, has recently purchased 119,459 shares of Ultrapar Participações S.A. (NYSE:UGP) during the fourth quarter, valued at approximately $289,000 according to its most recent Form 13F filing with the Securities and Exchange Commission.

Ultrapar Participações S.A., an oil and gas company with a market capitalization of $4.03 billion, operates through several segments including fuel distribution, LPG distribution, chemicals, storage terminals, and drugstores. Shares in the firm opened at $3.62 on Wednesday – a healthy boost from its 52-week low of $2.13 – with a fifty-day moving average of $3.11 and a two-hundred-day moving average of $2.72.

The company’s financial standing is sound, evidenced by its debt-to-equity ratio of 0.92 and quick ratio of 1.41 as well as its tripling of net profit in Q3 2020 compared to the same quarter in the previous year. Moreover, analysts expect continued growth for Ultrapar Participações S.A.: the company boasts a price-to-earnings ratio (P/E) of 12.91 and a PEG ratio of 0.61 indicating that it is undervalued in relation to expected earnings growth.

Investors interested in exploring what other hedge funds are holding UGP can use HoldingsChannel.com to get the latest 13F filings and insider trades for Ultrapar Participações S.A.

In conclusion, HRT Financial LP’s purchase gives further credence to Ultrapar Participações S.A.’s success story despite economic headwinds wrought by COVID-19. With its sound financial standing and strategic positioning as a diversified oil and gas company, Ultrapar Participações S.A. remains an intriguing investment opportunity for discerning investors seeking exposure to the sector.

BestStocks by Yasmim Mendonça, June 16, 2023