Should You Hold UGI Corporation (UGI)?

Diamond Hill Capital, an investment management company, released its “Small-Mid Cap Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -3.38% net of fees compared to a -2.82% return for the Russell 2500 Index. Portfolio’s consumer staples holdings and financials exposure contributed positively to the strategy’s performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Capital discussed stocks like UGI Corporation (NYSE:UGI) in the Q3 2022 investor letter. Headquartered in King of Prussia, Pennsylvania, UGI Corporation (NYSE:UGI) is an energy product and related services distributor. On October 24, 2022, UGI Corporation (NYSE:UGI) stock closed at $32.84 per share. One-month return of UGI Corporation (NYSE:UGI) was -0.12% and its shares lost 26.50% of their value over the last 52 weeks. UGI Corporation (NYSE:UGI)  has a market capitalization of $6.876 billion.

Diamond Hill Capital made the following comment about UGI Corporation (NYSE:UGI) in its Q3 2022 investor letter:

“UGI Corporation (NYSE:UGI), a natural gas and electric power utility, generates approximately one-third of its revenue through its European propane distribution business. The European energy market dislocation and subsequent inflation have raised fears of significant volume and price contraction, pressuring UGI’s share price. Longer term, we believe UGI’s investments into renewable/alternative energy sources position it well. In the nearer term, it should continue to have an advantage delivering fuel to rural locations that are not easily served by gas pipelines — whether that fuel is propane, liquified petroleum gas (LPG), renewable natural gas (RNG) or other alternative fuels.”

Natural Gas


UGI Corporation (NYSE:UGI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held UGI Corporation (NYSE:UGI) at the end of the second quarter which was 30 in the previous quarter.

We discussed UGI Corporation (NYSE:UGI) in another article and shared Diamond Hill Capital’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.