Ferguson plc (NYSE:FERG) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Ferguson plc (NYSE:FERG) have been given a consensus recommendation of “Moderate Buy” by the seventeen brokerages that are presently covering the company, MarketBeat reports. Five research analysts have rated the stock with a hold recommendation, ten have issued a buy recommendation and two have issued a strong buy recommendation on the company. The average 12-month price objective among analysts that have covered the stock in the last year is $273.6421.

Several research firms have weighed in on FERG. Citigroup restated a “neutral” rating on shares of Ferguson in a research note on Wednesday, May 6th. Jefferies Financial Group restated a “buy” rating and issued a $300.00 price target on shares of Ferguson in a research note on Tuesday, February 24th. Wells Fargo & Company upped their price target on Ferguson from $260.00 to $285.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Barclays upped their price target on Ferguson from $295.00 to $297.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Finally, UBS Group upped their price target on Ferguson from $220.00 to $252.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 25th.

Ferguson Trading Down 0.6%

FERG stock opened at $229.14 on Friday. Ferguson has a 1-year low of $207.64 and a 1-year high of $271.64. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.78 and a quick ratio of 0.96. The company has a market capitalization of $44.44 billion, a price-to-earnings ratio of 26.64, a PEG ratio of 1.63 and a beta of 1.15. The business has a 50 day simple moving average of $241.02 and a two-hundred day simple moving average of $241.33.

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

Ferguson Dividend Announcement

The company also recently disclosed 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. This represents a $3.56 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, May 15th. Ferguson’s dividend payout ratio is 41.40%.

Ferguson announced that its Board of Directors has initiated a stock buyback program on Tuesday, May 5th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to purchase up to 3.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Institutional Trading of Ferguson

Several hedge funds have recently modified their holdings of FERG. Wellington Management Group LLP raised its holdings in shares of Ferguson by 150.8% during the 4th quarter. Wellington Management Group LLP now owns 9,366,465 shares of the company’s stock worth $2,085,256,000 after acquiring an additional 5,631,554 shares in the last quarter. Norges Bank purchased a new stake in shares of Ferguson during the 4th quarter worth approximately $498,005,000. Durable Capital Partners LP purchased a new stake in shares of Ferguson during the 3rd quarter worth approximately $244,561,000. Qube Research & Technologies Ltd raised its holdings 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 worth $244,236,000 after acquiring an additional 929,475 shares in the last quarter. Finally, 59 North Capital Management LP raised its holdings in shares of Ferguson by 114.7% during the 3rd quarter. 59 North Capital Management LP now owns 1,255,137 shares of the company’s stock worth $281,879,000 after acquiring an additional 670,473 shares in the last quarter. 81.98% of the stock is owned by hedge funds and other institutional investors.

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.