Ferguson (NYSE:FERG) Upgraded to “Outperform” at Zelman & Associates

Zelman & Associates upgraded shares of Ferguson (NYSE:FERG) from a neutral rating to an outperform rating in a report issued on Friday,Benzinga reports. Zelman & Associates currently has $285.00 price target on the stock.

Several other equities research analysts have also recently commented on the company. Barclays increased their price objective on Ferguson from $295.00 to $297.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Wells Fargo & Company lifted their price target on shares of Ferguson from $260.00 to $285.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Royal Bank Of Canada boosted their price objective on shares of Ferguson from $271.00 to $281.00 and gave the company an “outperform” rating in a report on Wednesday, May 6th. Citigroup restated a “neutral” rating on shares of Ferguson in a research report on Wednesday, May 6th. Finally, Weiss Ratings upgraded shares of Ferguson from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 2nd. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Ferguson has an average rating of “Moderate Buy” and a consensus target price of $277.21.

Ferguson Price Performance

FERG stock opened at $231.39 on Friday. The firm has a 50 day moving average price of $230.34 and a 200-day moving average price of $240.30. The firm has a market capitalization of $44.88 billion, a price-to-earnings ratio of 26.91, a PEG ratio of 1.66 and a beta of 1.13. Ferguson has a 52-week low of $207.64 and a 52-week high of $271.64. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.96 and a current ratio of 1.78.

Ferguson (NYSE:FERG) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, beating the consensus estimate of $2.14 by $0.14. The company had revenue of $7.47 billion for the quarter. Ferguson had a net margin of 6.98% and a return on equity of 38.81%. The business’s revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period last year, the company posted $2.50 earnings per share. Equities research analysts forecast that Ferguson will post 11.27 EPS for the current fiscal year.

Ferguson announced that its Board of Directors has approved a stock 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 stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Ferguson Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Friday, May 15th were given a dividend of $0.89 per share. This represents a $3.56 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Friday, May 15th. Ferguson’s dividend payout ratio (DPR) is presently 41.40%.

Hedge Funds Weigh In On Ferguson

A number of hedge funds have recently made changes to their positions in FERG. Wellington Management Group LLP lifted its holdings 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 worth $2,085,256,000 after purchasing an additional 5,631,554 shares during the period. Norges Bank purchased a new position in Ferguson in the fourth quarter valued at about $498,005,000. Durable Capital Partners LP purchased a new position in Ferguson in the third quarter valued at about $244,561,000. Qube Research & Technologies Ltd lifted its position in shares of Ferguson by 588.1% during the 3rd quarter. Qube Research & Technologies Ltd now owns 1,087,523 shares of the company’s stock valued at $244,236,000 after acquiring an additional 929,475 shares during the period. Finally, Voloridge Investment Management LLC lifted its position in shares of Ferguson by 502.8% during the 3rd quarter. Voloridge Investment Management LLC now owns 765,725 shares of the company’s stock valued at $171,967,000 after acquiring an additional 638,692 shares during the period. Institutional investors own 81.98% of the company’s stock.

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.