Ferguson plc (NYSE:FERG) Sees Significant Growth in Short Interest

Ferguson plc (NYSE:FERG) was the target of a large growth in short interest during the month of August. As of August 14th, there was short interest totaling 4,996,064 shares, a growth of 78.9% from the July 30th total of 2,792,984 shares. Currently, 2.6% of the shares of the stock are short sold. Based on an average trading volume of 7,452,362 shares, the days-to-cover ratio is currently 0.7 days.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on FERG. Weiss Ratings upgraded shares of Ferguson from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, July 2nd. Sanford C. Bernstein increased their price target on shares of Ferguson from $310.00 to $325.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. Robert W. Baird raised their price target on shares of Ferguson from $285.00 to $288.00 and gave the stock an “outperform” rating in a report on Tuesday, August 11th. Wells Fargo & Company upped their price objective on shares of Ferguson from $285.00 to $295.00 and gave the company an “overweight” rating in a research note on Tuesday, August 11th. Finally, Citigroup restated a “neutral” rating on shares of Ferguson in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $285.93.

Ferguson Stock Performance

Ferguson stock traded down $3.68 during trading hours on Monday, reaching $224.81. 1,624,461 shares of the company were exchanged, compared to its average volume of 1,740,561. Ferguson has a 12 month low of $207.64 and a 12 month high of $271.64. The company has a current ratio of 1.73, a quick ratio of 0.93 and a debt-to-equity ratio of 0.72. The stock has a 50-day moving average of $236.93 and a 200 day moving average of $239.47. The firm has a market cap of $43.49 billion, a price-to-earnings ratio of 26.42, a PEG ratio of 1.59 and a beta of 1.14.

Ferguson (NYSE:FERG) last released its quarterly earnings results on Monday, August 10th. The company reported $3.39 EPS for the quarter, beating analysts’ consensus estimates of $3.23 by $0.16. The company had revenue of $8.75 billion for the quarter. Ferguson had a net margin of 6.82% and a return on equity of 37.24%. As a group, research analysts anticipate that Ferguson will post 11.42 earnings per share for the current year.

Ferguson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Friday, August 21st will be issued a $0.89 dividend. This represents a $3.56 annualized dividend and a yield of 1.6%. The ex-dividend date is Friday, August 21st. Ferguson’s dividend payout ratio (DPR) is 41.83%.

Ferguson declared 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 buy up to 3.9% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Ferguson

Hedge funds and other institutional investors have recently made changes to their positions in the business. Leonteq Securities AG bought a new stake in Ferguson during the 4th quarter valued at approximately $26,000. Basepoint Wealth LLC bought a new position in Ferguson in the 4th quarter worth approximately $26,000. Compass Financial Management LLC acquired a new position in shares of Ferguson during the second quarter worth approximately $32,000. Zions Bancorporation National Association UT lifted its holdings in shares of Ferguson by 123.4% during the fourth quarter. Zions Bancorporation National Association UT now owns 143 shares of the company’s stock worth $32,000 after buying an additional 79 shares during the last quarter. Finally, Johnson Financial Group Inc. bought a new stake in shares of Ferguson in the third quarter valued at approximately $34,000. 81.98% of the stock is owned by institutional investors and hedge funds.

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.