Key Points
- Insider sale: Jake Schlicher sold 5,177 Ferguson shares for approximately $1.20 million at an average price of $230.92, reducing his position by 35.3% to 9,490 shares.
- Business performance: Ferguson reported quarterly EPS of $3.39, exceeding estimates of $3.23, on revenue of $8.75 billion. The company also authorized a $2 billion share-repurchase program and declared a quarterly dividend of $0.89 per share.
- Market outlook: Shares opened at $219.09, down 2.4%, while analysts maintained a consensus “Moderate Buy” rating with an average price target of $285.93.
Ferguson plc (NYSE:FERG - Get Free Report) insider Jake Schlicher sold 5,177 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $230.92, for a total value of $1,195,472.84. Following the completion of the transaction, the insider owned 9,490 shares in the company, valued at approximately $2,191,430.80. The trade was a 35.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website.
Ferguson Stock Down 2.4%
Shares of NYSE:FERG opened at $219.09 on Wednesday. The firm has a 50 day simple moving average of $236.37 and a 200-day simple moving average of $238.86. Ferguson plc has a twelve month low of $207.64 and a twelve 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 company has a market capitalization of $42.38 billion, a PE ratio of 25.75, a P/E/G ratio of 1.56 and a beta of 1.13.
Ferguson (NYSE:FERG - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported $3.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.23 by $0.16. Ferguson had a net margin of 6.82% and a return on equity of 37.24%. The company had revenue of $8.75 billion during the quarter. On average, equities analysts predict that Ferguson plc will post 11.42 EPS for the current fiscal year.
Ferguson announced that its board has approved a stock repurchase plan on Tuesday, May 5th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to reacquire up to 3.9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.
Ferguson Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Friday, August 21st will be issued a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, August 21st. Ferguson's payout ratio is presently 41.83%.
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in the stock. Leonteq Securities AG acquired a new position in Ferguson in the fourth quarter worth approximately $26,000. Basepoint Wealth LLC acquired a new stake in shares of Ferguson during the 4th quarter valued at $26,000. Compass Financial Management LLC purchased a new position in shares of Ferguson during the 2nd quarter valued at $32,000. Zions Bancorporation National Association UT increased its stake in shares of Ferguson by 123.4% in the fourth quarter. Zions Bancorporation National Association UT now owns 143 shares of the company's stock worth $32,000 after acquiring an additional 79 shares during the last quarter. Finally, Johnson Financial Group Inc. acquired a new position in shares of Ferguson in the third quarter worth $34,000. Institutional investors and hedge funds own 81.98% of the company's stock.
Analyst Ratings Changes
Several brokerages recently issued reports on FERG. Sanford C. Bernstein boosted their price target on Ferguson from $310.00 to $325.00 and gave the company an "outperform" rating in a research report on Tuesday, August 11th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $261.00 target price on shares of Ferguson in a report on Tuesday, August 18th. Citigroup restated a "neutral" rating on shares of Ferguson in a report on Wednesday, May 6th. Weiss Ratings upgraded Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 2nd. Finally, Royal Bank Of Canada raised their target price on Ferguson from $281.00 to $290.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $285.93.
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About Ferguson
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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.
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