UGI stock touches 52-week high at $33.61 amid robust gains

UGI (NYSE:UGI) Corporation’s stock has reached a new 52-week high, trading at $33.61, as investors rally behind the company’s strong performance over the past year. The utility company, with a market capitalization of $7.2 billion, trades at an attractive P/E ratio of 13, according to InvestingPro data. The energy distribution company’s shares have seen a significant uptick, reflecting a bullish sentiment in the market. Over the last year, UGI’s stock has witnessed an impressive 36.4% increase, underscoring the company’s resilience and potential for growth amidst fluctuating market conditions. This milestone is a testament to UGI’s strategic initiatives and its ability to adapt to the dynamic energy sector landscape. The company offers a robust 4.5% dividend yield and has maintained dividend payments for 55 consecutive years. InvestingPro subscribers can access 8 additional key insights about UGI’s financial health and growth prospects.

In other recent news, UGI Corporation’s indirect subsidiaries, AmeriGas Partners, L.P. and AmeriGas Finance Corp., have announced plans to redeem all outstanding 5.500% Senior Notes due 2025. The redemption, scheduled for March 7, 2025, will be at a price of 100% of the principal amount, plus accrued interest. This move is part of UGI’s broader financial management strategy. In another development, UGI subsidiary AmeriGas Propane, L.P. has revised its credit agreement terms to adjust the financial covenants, aiming to better reflect the company’s liquidity position. This amendment, effective February 14, 2025, includes cash held in U.S. accounts in the liquidity calculation.

Additionally, Jefferies has raised its price target for UGI Corporation to $35, maintaining a Buy rating, citing a strong outlook bolstered by favorable weather conditions and strategic initiatives. Mizuho (NYSE:MFG) Securities also increased its price target to $33 while keeping an Outperform rating, following positive interactions with UGI’s management and an encouraging earnings call. These analyst updates reflect optimism regarding UGI’s strategic direction and potential for growth. At UGI’s recent Annual Meeting of Shareholders, all ten board nominees were elected, and the executive compensation plan was approved. The appointment of KPMG LLP as the independent auditor for fiscal year 2025 was also ratified with significant shareholder support.

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