Is UGI Corporation (UGI) a Worthy Investment?

Investment management company First Pacific Advisors recently released its “FPA Queens Road Small Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 4.20% compared to a 3.18% return for the Russell 2000 Value Index. The Fund returned 4.93% in the first half compared to 2.50% 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 highlighted stocks like UGI Corporation (NYSE:UGI) in the second quarter 2023 investor letter. Headquartered in King of Prussia, Pennsylvania, UGI Corporation (NYSE:UGI) markets and distributes energy products and services. On September 12, 2023, UGI Corporation (NYSE:UGI) stock closed at $23.84 per share. One-month return of UGI Corporation (NYSE:UGI) was 3.70%, and its shares lost 38.27% of their value over the last 52 weeks. UGI Corporation (NYSE:UGI) has a market capitalization of $4.994 billion.

FPA Queens Road Small Cap Value Fund made the following comment about UGI Corporation (NYSE:UGI) in its Q2 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. This is our kind of company – despite the disparate parts, UGI grows earnings at a relatively steady high single digit rate over the long term while distributing excess cash through dividends.25 Shares are down due to a collection of short-term issues – driver shortages at the US propane business, losses from fixed priced contracts at the European energy marketing business, lower propane volumes in Europe and warmer weather. We believe the company is attractive at less than 10x earnings and we have been incrementally adding.”

tcly / shutterstock.com

UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of second quarter which was 20 in the previous quarter.

We discussed UGI Corporation (NYSE:UGI) in another article and shared the list of Diamond Hill Capital Mid Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 15 Worst Performing Growth Stocks in 2023
• 12 Most Conservative Tech Companies
• 17 Countries with Highest Child Marriage Rates in the World

Disclosure: None. This article is originally published at Insider Monkey.