Is UGI Corporation (UGI) Trading at an Attractive Price?
Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 13.09% compared to a 15.26% return for the Russell 2000 Value Index. The Fund returned 16.00% in 2023 vs. 14.65% for the index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
FPA Queens Road Small Cap Value Fund featured stocks like UGI Corporation (NYSE:UGI) in the fourth quarter 2023 investor letter. Headquartered in King of Prussia, Pennsylvania, UGI Corporation (NYSE:UGI) markets and distributes energy products and services. On February 29, 2024, UGI Corporation (NYSE:UGI) stock closed at $24.48 per share. One-month return of UGI Corporation (NYSE:UGI) was -0.24%, and its shares lost 34.89% of their value over the last 52 weeks. UGI Corporation (NYSE:UGI) has a market capitalization of $5.13 billion.
FPA Queens Road Small Cap Value Fund stated the following regarding UGI Corporation (NYSE:UGI) in its fourth quarter 2023 investor letter:
"UGI Corporation (NYSE:UGI) owns gas utilities and pipelines in Pennsylvania and West Virginia and the largest propane distribution businesses in the United States and Europe. Despite its disparate parts, UGI has increased earnings at a relatively steady high single digit rate historically while distributing excess cash through dividends.24 Shares are down primarily because of the combination of poor execution and too much debt at AmeriGas, UGI’s U.S. propane business. On August 30, 2023 UGI announced a review of strategic alternatives. 25 We believe the company’s stock price is attractive at less than 10x earnings, and we have been incrementally adding to the Fund’s position."
A view of the skyline from an electricity pylon, to show the ubiquity of the companies energy products.
UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, UGI Corporation (NYSE:UGI) was held by 33 hedge fund portfolios, up from 29 in the previous quarter, according to our database.
We discussed UGI Corporation (NYSE:UGI) in another article and shared the list of dividend stocks that are on sale 30% or more. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
