Star Group Stock Rating Upgrade: A Strong-Buy Alert

Star Group (NYSE:SGU) has received an upgrade from StockNews.com, moving its rating from "buy" to "strong-buy" as reported on Friday. This change reflects the analysts' increased confidence in the stock's potential for growth and performance in the market.

Price Performance Overview

In midday trading on Friday, shares of Star Group were observed trading at $12.24, experiencing a decrease of $0.19. The trading volume reached 11,747 shares, which is lower than its average volume of 33,494. Important financial ratios indicate a current ratio of 0.75 and a quick ratio of 0.64, coupled with a debt-to-equity ratio of 0.71. Star Group has a market capitalization of approximately $423.26 million and a price-to-earnings ratio of 21.47, showcasing a beta of 0.48. The stock hit a 52-week low of $9.64 and attained a high of $12.99 over the same period. Additionally, the company has a 50-day simple moving average of $11.70 and a 200-day simple moving average of $11.66.

Star Group revealed its latest quarterly earnings on February 5, reporting earnings per share (EPS) of $0.79. The company's financial health is characterized by a net margin of 1.99% and a return on equity of 12.01%, reflecting solid profitability metrics.

Institutional Investments and Hedge Fund Activity

Recently, several hedge funds and institutional investors have adjusted their positions in Star Group. Notably, JPMorgan Chase & Co. increased its ownership by 12.0% in the third quarter, acquiring an additional 66,806 shares, bringing their total to 622,573 shares valued at around $7.3 million. Victory Capital Management Inc. entered a new position worth approximately $566,000 during the same period. GSA Capital Partners LLP significantly boosted its stake by 89.4%, now holding 22,884 shares worth around $269,000. In the fourth quarter, Roxbury Financial LLC and Jones Financial Companies Lllp both also made new investments in Star Group, amounting to approximately $122,000 and $27,000 respectively. Overall, 40.36% of Star Group stocks are held by various hedge funds and institutional shareholders.

About Star Group

Star Group, L.P. operates through its subsidiaries, providing heating oil and propane services to both residential and commercial customers across the United States. The company's offerings include gasoline and diesel fuel, in addition to installation, maintenance, and repair services for heating and air conditioning systems. As of September 30, 2023, Star Group serves around 402,200 full-service customers and approximately 52,400 delivery-only customers.

Conclusion

The upgrade of Star Group's stock rating to a strong buy highlights the analysts' positive outlook on the company's performance in the coming times. As the market continues to assess various investment opportunities, Star Group remains a noteworthy player in the home heating and propane sector.

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