Ferguson plc (NYSE:FERG) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Ferguson plc (NYSE:FERG) have received an average recommendation of “Moderate Buy” from the eighteen analysts that are covering the stock, MarketBeat.com reports. Six research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $269.7327.

Several analysts recently weighed in on FERG shares. Citigroup reaffirmed a “neutral” rating on shares of Ferguson in a research note on Wednesday, May 6th. Wells Fargo & Company raised their price objective on Ferguson from $260.00 to $285.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Royal Bank Of Canada raised their price objective on Ferguson from $271.00 to $281.00 and gave the company an “outperform” rating in a research note on Wednesday, May 6th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $300.00 price objective on shares of Ferguson in a research note on Tuesday, February 24th. Finally, Truist Financial lifted their price target on Ferguson from $260.00 to $300.00 and gave the company a “buy” rating in a research note on Wednesday, February 25th.

Ferguson Stock Performance

NYSE:FERG opened at $225.88 on Friday. The stock’s 50-day simple moving average is $240.53 and its 200 day simple moving average is $242.07. The firm has a market capitalization of $43.81 billion, a PE ratio of 26.27, a price-to-earnings-growth ratio of 1.60 and a beta of 1.23. The company has a quick ratio of 1.01, a current ratio of 1.78 and a debt-to-equity ratio of 0.68. Ferguson has a twelve month low of $177.75 and a twelve month high of $271.64.

Ferguson (NYSE:FERG) last released its quarterly earnings data on Tuesday, May 5th. The company reported $2.28 earnings per share for the quarter, beating the consensus estimate of $2.14 by $0.14. The business had revenue of $7.47 billion for the quarter. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.The business’s quarterly revenue was up 3.6% compared to the same quarter last year. During the same period last year, the business earned $2.50 earnings per share. On average, analysts anticipate that Ferguson will post 11.26 EPS for the current fiscal year.

Ferguson announced that its Board of Directors has approved a share buyback plan on Tuesday, May 5th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 3.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Ferguson Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Friday, May 15th will be paid a dividend of $0.89 per share. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, May 15th. Ferguson’s dividend payout ratio (DPR) is presently 41.40%.

Institutional Trading of Ferguson

A number of hedge funds have recently made changes to their positions in FERG. Wellington Management Group LLP boosted its stake in shares of Ferguson by 150.8% during the fourth quarter. Wellington Management Group LLP now owns 9,366,465 shares of the company’s stock valued at $2,085,256,000 after purchasing an additional 5,631,554 shares in the last quarter. Norges Bank acquired a new stake in shares of Ferguson during the fourth quarter valued at about $498,005,000. Durable Capital Partners LP acquired a new stake in shares of Ferguson during the third quarter valued at about $244,561,000. Qube Research & Technologies Ltd boosted its stake in shares of Ferguson by 588.1% during the third quarter. Qube Research & Technologies Ltd now owns 1,087,523 shares of the company’s stock valued at $244,236,000 after purchasing an additional 929,475 shares in the last quarter. Finally, 59 North Capital Management LP boosted its stake in shares of Ferguson by 114.7% during the third quarter. 59 North Capital Management LP now owns 1,255,137 shares of the company’s stock valued at $281,879,000 after purchasing an additional 670,473 shares in the last quarter. 81.98% of the stock is owned by institutional investors and hedge funds.

Ferguson Company Profile

Ferguson (NYSE: FERG) is a multinational distributor specializing in plumbing and heating products and related building supplies, serving professional contractors, builders and industrial customers. The company supplies a broad range of products used in residential, commercial and infrastructure projects, including pipes and fittings, valves and controls, HVAC equipment, waterworks materials, plumbing fixtures, pumps and accessories, as well as complementary electrical and specialty product lines.

Ferguson operates a network of branches and distribution centers that provide inventory, logistics and value-added services to trade customers.