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

Ferguson plc (NYSE:FERG) has been assigned a consensus rating of “Moderate Buy” from the sixteen brokerages that are currently covering the company, MarketBeat.com reports. Five research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $277.5825.

A number of research firms have recently weighed in on FERG. Weiss Ratings downgraded Ferguson from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 20th. Oppenheimer lifted their target price on Ferguson from $255.00 to $280.00 and gave the stock an “outperform” rating in a report on Wednesday, February 25th. UBS Group lifted their target price on Ferguson from $220.00 to $252.00 and gave the stock a “neutral” rating in a report on Wednesday, February 25th. Royal Bank Of Canada lifted their target price on Ferguson from $271.00 to $281.00 and gave the stock an “outperform” rating in a report on Wednesday, May 6th. Finally, Jefferies Financial Group reissued a “buy” rating and set a $300.00 target price on shares of Ferguson in a report on Tuesday, February 24th.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its position in shares of Ferguson by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 19,418,334 shares of the company’s stock worth $4,323,104,000 after purchasing an additional 102,850 shares during the period. Wellington Management Group LLP increased its position in shares of Ferguson by 150.8% in the fourth quarter. Wellington Management Group LLP now owns 9,366,465 shares of the company’s stock worth $2,085,256,000 after purchasing an additional 5,631,554 shares during the period. Janus Henderson Group PLC increased its position in shares of Ferguson by 2.1% in the first quarter. Janus Henderson Group PLC now owns 6,107,108 shares of the company’s stock worth $1,424,075,000 after purchasing an additional 125,317 shares during the period. State Street Corp increased its position in shares of Ferguson by 1.8% in the fourth quarter. State Street Corp now owns 4,516,764 shares of the company’s stock worth $1,005,567,000 after purchasing an additional 79,296 shares during the period. Finally, Franklin Resources Inc. increased its position in shares of Ferguson by 0.6% in the fourth quarter. Franklin Resources Inc. now owns 4,393,603 shares of the company’s stock worth $977,959,000 after purchasing an additional 25,785 shares during the period. Institutional investors own 81.98% of the company’s stock.

Ferguson Trading Down 1.2%

Shares of Ferguson stock opened at $234.50 on Wednesday. The business has a fifty day simple moving average of $239.88 and a two-hundred day simple moving average of $240.30. Ferguson has a 1 year low of $207.64 and a 1 year high of $271.64. The company has a market capitalization of $45.48 billion, a price-to-earnings ratio of 27.27, a P/E/G ratio of 1.68 and a beta of 1.15. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.78 and a quick ratio of 0.96.

Ferguson (NYSE:FERG) last posted its earnings results on Tuesday, May 5th. The company reported $2.28 earnings per share for the quarter, topping analysts’ consensus estimates of $2.14 by $0.14. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.The company had revenue of $7.47 billion during the quarter. During the same period in the prior year, the business posted $2.50 EPS. The firm’s quarterly revenue was up 3.6% compared to the same quarter last year. Research analysts forecast that Ferguson will post 11.26 EPS for the current year.

Ferguson announced that its board has authorized a share buyback program on Tuesday, May 5th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to reacquire up to 3.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Ferguson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Friday, May 15th will be issued a dividend of $0.89 per share. The ex-dividend date of this dividend is Friday, May 15th. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.5%. Ferguson’s dividend payout ratio (DPR) is currently 41.40%.

About Ferguson

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.