Robert W. Baird Forecasts Strong Price Appreciation for Ferguson (NASDAQ:FERG) Stock

Key Points

• Ferguson received a price target increase from Robert W. Baird, raising it from $260 to $262, indicating a potential upside of 13.98% from its previous close.
• The stock has a consensus rating of “Moderate Buy” from analysts, with a variety of recent price targets ranging from $230 to $275.
• Institutional investors own 81.98% of Ferguson's stock, with significant recent stakes added by several hedge funds in the last quarter.

Ferguson (NASDAQ:FERG - Free Report) had its price target increased by Robert W. Baird from $260.00 to $262.00 in a research note released on Wednesday, MarketBeat Ratings reports. They currently have an outperform rating on the stock.

FERG has been the topic of several other research reports. Oppenheimer upped their target price on shares of Ferguson from $189.00 to $235.00 and gave the company an "outperform" rating in a research note on Wednesday, June 4th. Barclays upped their target price on shares of Ferguson from $190.00 to $247.00 and gave the company an "overweight" rating in a research note on Wednesday, June 4th. JPMorgan Chase & Co. upped their target price on shares of Ferguson from $220.00 to $225.00 and gave the company an "overweight" rating in a research note on Thursday, September 4th. UBS Group upped their target price on shares of Ferguson from $173.00 to $204.00 and gave the company a "neutral" rating in a research note on Wednesday, June 4th. Finally, Wells Fargo & Company increased their price objective on shares of Ferguson from $250.00 to $275.00 and gave the stock an "overweight" rating in a research note on Wednesday. Ten equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat, Ferguson presently has a consensus rating of "Moderate Buy" and an average target price of $235.71.

Ferguson Stock Performance

FERG traded up $4.67 during midday trading on Wednesday, hitting $229.15. 2,612,426 shares of the company traded hands, compared to its average volume of 1,764,561. The company has a quick ratio of 0.91, a current ratio of 1.68 and a debt-to-equity ratio of 0.83. The firm has a market capitalization of $45.18 billion, a PE ratio of 27.51, a price-to-earnings-growth ratio of 1.69 and a beta of 1.15. The company's 50-day moving average is $226.73 and its 200 day moving average is $197.69. Ferguson has a 52 week low of $146.00 and a 52 week high of $243.40.

Ferguson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, November 7th. Investors of record on Friday, September 26th will be issued a $0.83 dividend. This represents a $3.32 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, September 26th. Ferguson's dividend payout ratio is currently 41.40%.

Institutional Investors Weigh In On Ferguson

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in Ferguson by 0.9% during the 2nd quarter. Vanguard Group Inc. now owns 19,341,871 shares of the company's stock valued at $4,211,692,000 after buying an additional 173,128 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Ferguson by 0.4% in the second quarter. Bank of New York Mellon Corp now owns 7,687,611 shares of the company's stock valued at $1,673,977,000 after purchasing an additional 27,312 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Ferguson by 13.8% in the first quarter. Invesco Ltd. now owns 6,818,800 shares of the company's stock valued at $1,092,576,000 after purchasing an additional 827,355 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Ferguson by 65.0% in the first quarter. Price T Rowe Associates Inc. MD now owns 4,454,467 shares of the company's stock valued at $713,740,000 after purchasing an additional 1,755,464 shares in the last quarter. Finally, Franklin Resources Inc. grew its holdings in shares of Ferguson by 39.3% in the second quarter. Franklin Resources Inc. now owns 4,255,661 shares of the company's stock valued at $926,830,000 after purchasing an additional 1,201,493 shares in the last quarter. 81.98% of the stock is owned by hedge funds and other institutional investors.

About Ferguson

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets. The company also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, fabrication, and others, as well as heating, ventilation, and air conditioning products under the Ferguson brand name.