Ferguson (NYSE:FERG) Shares Gap Up – Time to Buy?

Ferguson plc (NYSE:FERG) shares gapped up before the market opened on Monday . The stock had previously closed at $234.33, but opened at $252.00. Ferguson shares last traded at $255.5610, with a volume of 2,683,701 shares traded.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. The Goldman Sachs Group downgraded shares of Ferguson from a “buy” rating to a “neutral” rating and cut their target price for the company from $315.00 to $265.00 in a research note on Monday, July 6th. Weiss Ratings raised shares of Ferguson from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, July 2nd. Citigroup reiterated a “neutral” rating on shares of Ferguson in a report 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 report on Wednesday, May 6th. Finally, Barclays boosted their price objective on Ferguson from $295.00 to $297.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $277.21.

Ferguson Price Performance

The company has a market cap of $49.63 billion, a PE ratio of 29.76, a price-to-earnings-growth ratio of 1.77 and a beta of 1.14. The business’s 50 day moving average price is $231.73 and its 200-day moving average price is $240.63. The company has a quick ratio of 0.96, a current ratio of 1.78 and a debt-to-equity ratio of 0.68.

Ferguson (NYSE:FERG) last posted its earnings results on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, topping analysts’ consensus estimates of $2.14 by $0.14. The business 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 company’s revenue for the quarter was up 3.6% on a year-over-year basis. During the same period in the previous year, the firm posted $2.50 earnings per share. As a group, analysts forecast that Ferguson plc will post 11.25 earnings per share for the current year.

Ferguson announced that its board 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 buy up to 3.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.

Hedge Funds Weigh In On Ferguson

A number of institutional investors have recently added to or reduced their stakes in the company. Signaturefd LLC grew its stake in shares of Ferguson by 1.1% during the fourth quarter. Signaturefd LLC now owns 3,979 shares of the company’s stock valued at $886,000 after acquiring an additional 44 shares in the last quarter. Simplicity Wealth LLC boosted its holdings in Ferguson by 1.6% in the fourth quarter. Simplicity Wealth LLC now owns 3,132 shares of the company’s stock valued at $697,000 after purchasing an additional 48 shares during the last quarter. Sivia Capital Partners LLC boosted its holdings in Ferguson by 2.9% in the fourth quarter. Sivia Capital Partners LLC now owns 1,685 shares of the company’s stock valued at $375,000 after purchasing an additional 48 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Ferguson by 7.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company’s stock valued at $150,000 after purchasing an additional 48 shares in the last quarter. Finally, REAP Financial Group LLC increased its holdings in Ferguson by 13.4% during the 4th quarter. REAP Financial Group LLC now owns 431 shares of the company’s stock worth $96,000 after purchasing an additional 51 shares during the last quarter. Institutional investors and hedge funds 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.