Ferguson (NASDAQ:FERG) Sets New 12-Month High - Should You Buy?

Key Points

• Ferguson plc shares reached a new 52-week high of $228.83 during recent trading, indicating strong performance with increased investor interest.
• Several analysts have upgraded their target prices for Ferguson, with Oppenheimer raising it from $189 to $235, indicating positive market sentiment and potential for future gains.
• The company reported impressive quarterly earnings, with earnings per share of $2.50, surpassing analysts' expectations by $0.44 and showing a year-over-year revenue increase of 4.3%.

Ferguson plc (NASDAQ:FERG - Get Free Report) shares reached a new 52-week high during trading on Wednesday . The company traded as high as $228.83 and last traded at $228.43, with a volume of 320202 shares. The stock had previously closed at $226.37.

Analyst Upgrades and Downgrades

FERG has been the topic of a number of research analyst reports. Oppenheimer lifted their target price on Ferguson from $189.00 to $235.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 4th. Berenberg Bank reiterated a "hold" rating and set a $215.00 target price on shares of Ferguson in a research report on Thursday, June 5th. Royal Bank Of Canada lifted their target price on Ferguson from $189.00 to $231.00 and gave the stock an "outperform" rating in a research report on Wednesday, June 4th. Truist Financial reiterated a "buy" rating and set a $230.00 target price on shares of Ferguson in a research report on Wednesday, June 4th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $220.00 target price (up previously from $195.00) on shares of Ferguson in a research note on Monday, June 9th. Six analysts have rated the stock with a hold rating and ten have issued a buy rating to the company. Based on data from MarketBeat, Ferguson currently has a consensus rating of "Moderate Buy" and a consensus target price of $220.64.

Ferguson Trading Up 1.5%

The business's 50 day moving average price is $220.04 and its two-hundred day moving average price is $188.48. The company has a market capitalization of $45.30 billion, a price-to-earnings ratio of 27.58, a price-to-earnings-growth ratio of 1.69 and a beta of 1.16. The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.91 and a current ratio of 1.68.

Ferguson (NASDAQ:FERG - Get Free Report) last issued its quarterly earnings results on Tuesday, June 3rd. The company reported $2.50 earnings per share for the quarter, topping analysts' consensus estimates of $2.06 by $0.44. Ferguson had a net margin of 5.68% and a return on equity of 34.63%. The company's revenue for the quarter was up 4.3% on a year-over-year basis. During the same period last year, the company posted $2.32 earnings per share. Equities analysts forecast that Ferguson plc will post 9.4 earnings per share for the current fiscal year.

Ferguson Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 6th. Shareholders of record on Friday, June 20th were paid a dividend of $0.83 per share. The ex-dividend date of this dividend was Friday, June 20th. This represents a $3.32 dividend on an annualized basis and a yield of 1.4%. Ferguson's dividend payout ratio is currently 41.40%.

Institutional Trading of Ferguson

A number of hedge funds have recently bought and sold shares of FERG. T. Rowe Price Investment Management Inc. grew its stake in shares of Ferguson by 101.1% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 4,165,873 shares of the company's stock valued at $667,498,000 after buying an additional 2,094,029 shares in the last quarter. Norges Bank acquired a new position in Ferguson in the second quarter worth approximately $395,401,000. Price T Rowe Associates Inc. MD increased its holdings in 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 worth $713,740,000 after buying an additional 1,755,464 shares during the last quarter. Bank of New York Mellon Corp increased its holdings in Ferguson by 24.5% in the first quarter. Bank of New York Mellon Corp now owns 7,660,299 shares of the company's stock worth $1,227,410,000 after buying an additional 1,506,024 shares during the last quarter. Finally, Franklin Resources Inc. increased its holdings in Ferguson by 39.3% in the second quarter. Franklin Resources Inc. now owns 4,255,661 shares of the company's stock worth $926,830,000 after buying an additional 1,201,493 shares during 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.

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