Royal Bank Of Canada Cuts Ferguson (NYSE:FERG) Price Target to $286.00

Key Points

• Royal Bank of Canada lowered Ferguson’s price target from $290 to $286 while maintaining an “outperform” rating, implying approximately 31% upside from the reported share price.
• Analyst sentiment remains broadly positive, with Ferguson holding a consensus “Moderate Buy” rating and an average price target of $283.07.
• Ferguson shares fell to $218.18 in Wednesday trading, despite the company exceeding quarterly earnings expectations with $3.39 in adjusted earnings per share versus the $3.23 consensus estimate.

Ferguson (NYSE:FERG - Get Free Report) had its price objective reduced by analysts at Royal Bank Of Canada from $290.00 to $286.00 in a report released on Wednesday, Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Royal Bank Of Canada's target price would indicate a potential upside of 31.08% from the stock's current price.

Other analysts also recently issued reports about the company. Wells Fargo & Company boosted their target price on Ferguson from $285.00 to $295.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 11th. Barclays boosted their price target on Ferguson from $297.00 to $313.00 and gave the company an "overweight" rating in a report on Tuesday, August 11th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $261.00 price objective on shares of Ferguson in a report on Tuesday, August 18th. Sanford C. Bernstein increased their target price on Ferguson from $310.00 to $325.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 11th. Finally, UBS Group lifted their price target on shares of Ferguson from $252.00 to $256.00 and gave the company a "neutral" rating in a research report on Tuesday, August 11th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $283.07.

Ferguson Stock Performance

FERG traded down $5.15 during trading on Wednesday, hitting $218.18. 84,105 shares of the stock were exchanged, compared to its average volume of 1,693,047. The company has a quick ratio of 0.93, a current ratio of 1.73 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $42.21 billion, a P/E ratio of 25.74, a PEG ratio of 1.55 and a beta of 1.14. The stock has a fifty day moving average price of $231.66 and a two-hundred day moving average price of $234.65. Ferguson has a 1-year low of $212.13 and a 1-year high of $271.64.

Ferguson (NYSE:FERG - Get Free Report) last posted its quarterly earnings data on Monday, August 10th. The company reported $3.39 earnings per share for the quarter, topping analysts' consensus estimates of $3.23 by $0.16. The company had revenue of $8.75 billion during the quarter. Ferguson had a return on equity of 37.24% and a net margin of 6.82%. As a group, sell-side analysts predict that Ferguson will post 11.42 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Jake Schlicher sold 5,177 shares of the stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $230.92, for a total value of $1,195,472.84. Following the completion of the sale, the insider directly owned 9,490 shares of the company's stock, valued at approximately $2,191,430.80. This represents a 35.30% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.15% of the company's stock.

Hedge Funds Weigh In On Ferguson

Several institutional investors have recently bought and sold shares of the stock. Raiffeisen Bank International AG boosted its holdings in Ferguson by 350,745.0% in the 4th quarter. Raiffeisen Bank International AG now owns 522,759 shares of the company's stock valued at $116,382,000 after purchasing an additional 522,610 shares during the period. Saudi Central Bank raised its position in shares of Ferguson by 88.5% in the second quarter. Saudi Central Bank now owns 13,607 shares of the company's stock valued at $3,229,000 after buying an additional 6,389 shares in the last quarter. Marsico Capital Management LLC acquired a new stake in shares of Ferguson in the fourth quarter valued at approximately $11,017,000. Munich Reinsurance Co Stock Corp in Munich boosted its stake in shares of Ferguson by 2.5% in the second quarter. Munich Reinsurance Co Stock Corp in Munich now owns 326,515 shares of the company's stock valued at $77,509,000 after buying an additional 7,916 shares during the period. Finally, Jones Financial Companies Lllp grew its position in Ferguson by 13.2% during the second quarter. Jones Financial Companies Lllp now owns 96,108 shares of the company's stock worth $22,932,000 after buying an additional 11,196 shares in the last quarter. 81.98% of the stock is currently owned by institutional investors.

Ferguson Company Profile

Ferguson plc NYSE: FERG is a North American distributor of plumbing and heating products, supplying professional customers across the residential, commercial, industrial and infrastructure markets. The company serves contractors, builders, remodelers, municipalities, industrial businesses and other trade professionals through branch locations, distribution centers and digital ordering platforms.

Its product offerings include plumbing supplies and fixtures, heating and cooling equipment, water and wastewater products, fire protection systems, waterworks materials, industrial piping and related maintenance, repair and operating supplies.

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