Ferguson plc (NYSE:FERG) Stock Has Average Price Target of $285.57

Key Points

• Analysts maintain a moderately bullish outlook: Ferguson has a consensus “Moderate Buy” rating from 18 analysts, with an average 12-month price target of $285.57 versus a recent share price of $221.60.
• Quarterly results exceeded expectations: Ferguson reported adjusted earnings of $3.39 per share, beating estimates of $3.23, on $8.75 billion in revenue. Analysts expect approximately $11.42 in EPS for the current fiscal year.
• Shareholders will receive a dividend: The company declared a quarterly dividend of $0.89 per share, equivalent to $3.56 annually and a 1.6% yield; institutional investors own nearly 82% of the stock.

Shares of Ferguson plc (NYSE:FERG - Get Free Report) have earned an average rating of "Moderate Buy" from the eighteen analysts that are covering the stock, Marketbeat reports. Six investment analysts have rated the stock with a hold recommendation, ten have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $285.57.

A number of equities research analysts have commented on the stock. Oppenheimer increased their price objective on shares of Ferguson from $280.00 to $288.00 and gave the company an "outperform" rating in a research report on Tuesday, August 11th. Jefferies Financial Group set a $295.00 price objective on shares of Ferguson in a report on Thursday, September 3rd. Sanford C. Bernstein lifted their price objective 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. Zelman & Associates upgraded shares of Ferguson from a "hold" rating to an "outperform" rating and set a $285.00 target price for the company in a research note on Friday, July 17th. Finally, Barclays increased their target price on Ferguson from $297.00 to $313.00 and gave the company an "overweight" rating in a report on Tuesday, August 11th.

Ferguson Stock Performance

Shares of Ferguson stock opened at $221.60 on Friday. Ferguson has a one year low of $212.13 and a one year high of $271.64. The company has a market cap of $42.87 billion, a PE ratio of 26.04, a P/E/G ratio of 1.54 and a beta of 1.14. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.93 and a current ratio of 1.73. The business has a 50-day simple moving average of $232.20 and a 200-day simple moving average of $234.66.

Ferguson (NYSE:FERG - Get Free Report) last issued its earnings results on Monday, August 10th. The company reported $3.39 earnings per share 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 firm had revenue of $8.75 billion for the quarter. On average, equities research analysts forecast that Ferguson will post 11.42 EPS for the current fiscal year.

Ferguson Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Friday, August 21st will be given 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, August 21st. Ferguson's dividend payout ratio is currently 41.83%.

Insider Buying and Selling at Ferguson

In other news, insider Jake Schlicher sold 5,177 shares of the firm's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $230.92, for a total transaction of $1,195,472.84. Following the sale, the insider owned 9,490 shares of the company's stock, valued at approximately $2,191,430.80. This trade 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 the SEC website. Company insiders own 0.15% of the company's stock.

Institutional Trading of Ferguson

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Raiffeisen Bank International AG increased its position in Ferguson by 350,745.0% during the fourth quarter. Raiffeisen Bank International AG now owns 522,759 shares of the company's stock worth $116,382,000 after buying an additional 522,610 shares during the period. Saudi Central Bank boosted its holdings 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 acquiring an additional 6,389 shares during the period. Marsico Capital Management LLC acquired a new stake in shares of Ferguson in the fourth quarter valued at approximately $11,017,000. Jones Financial Companies Lllp grew its position in shares of 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 acquiring an additional 11,196 shares during the last quarter. Finally, Lmcg Investments LLC purchased a new position in shares of Ferguson during the first quarter worth approximately $1,806,000. Institutional investors and hedge funds own 81.98% of the company's stock.

Key Stories Impacting Ferguson

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: A financial comparison of SiteOne Landscape Supply and Ferguson could provide investors with additional perspective on Ferguson’s valuation, profitability, balance sheet and competitive position. The company’s latest reported quarter exceeded consensus EPS estimates, although the article does not identify a new earnings catalyst. Financial Survey: SiteOne Landscape Supply vs. Ferguson
• Neutral Sentiment: Ferguson Home promotional offers and coupons may support consumer demand at the company’s home-improvement business, but discount activity is not generally a significant driver of Ferguson plc’s stock valuation. Ferguson Home promo codes, coupons, and deals
• Neutral Sentiment: The report about a council intended to expand Washington state’s commercial-space industry appears to concern a different Ferguson and is not related to Ferguson plc. Ferguson launches council to boost state’s commercial space industry
• Neutral Sentiment: Articles about actor Jesse Tyler Ferguson, football players Terrance Ferguson and Colby Parkinson, Ferguson Lumber, and local school and data-center developments refer to unrelated people, businesses or places. They should not affect Ferguson plc’s investment outlook. Related Ferguson namesake coverage

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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