Ferguson (NASDAQ:FERG) Shares Gap Down - Here's What Happened

Key Points

• Ferguson plc shares opened significantly lower at $226.54, down from a previous close of $237.67, with recent trading prices around $224.10.
• Multiple brokerages have varying target prices for Ferguson, with Wells Fargo upgrading their target to $250.00 and maintaining an "overweight" rating, while others like Berenberg Bank hold a "hold" rating with a target of $215.00.
• Institutional investors collectively own 81.98% of Ferguson's stock, signaling strong backing from large financial entities amid recent changes in their positions.

Ferguson plc (NASDAQ:FERG - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $237.67, but opened at $226.54. Ferguson shares last traded at $224.10, with a volume of 571,309 shares changing hands.

Analysts Set New Price Targets

Several analysts have issued reports on the company. UBS Group increased their target price on Ferguson from $173.00 to $204.00 and gave the company a "neutral" rating in a research report on Wednesday, June 4th. Truist Financial reaffirmed a "buy" rating and issued a $230.00 price objective on shares of Ferguson in a research report on Wednesday, June 4th. JPMorgan Chase & Co. increased their price objective on shares of Ferguson from $220.00 to $225.00 and gave the company an "overweight" rating in a research report on Thursday, September 4th. Barclays increased their price objective on shares of Ferguson from $190.00 to $247.00 and gave the company an "overweight" rating in a research report on Wednesday, June 4th. Finally, Wells Fargo & Company increased their price objective on shares of Ferguson from $230.00 to $250.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Ten analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, Ferguson presently has an average rating of "Moderate Buy" and an average target price of $221.00.

Ferguson Trading Down 6.4%

The stock has a 50-day simple moving average of $226.61 and a 200 day simple moving average of $196.33. The company has a current ratio of 1.68, a quick ratio of 0.91 and a debt-to-equity ratio of 0.83. The company has a market cap of $41.65 billion, a price-to-earnings ratio of 25.36, a PEG ratio of 1.69 and a beta of 1.15.

Ferguson Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 7th. Shareholders of record on Friday, September 26th will be given a dividend of $0.83 per share. The ex-dividend date of this dividend is Friday, September 26th. This represents a $3.32 dividend on an annualized basis and a yield of 1.6%. Ferguson's payout ratio is currently 41.40%.

Hedge Funds Weigh In On Ferguson

A number of institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in shares of 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 during the last quarter. Bank of New York Mellon Corp raised its stake in shares of Ferguson by 0.4% during the 2nd 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 buying an additional 27,312 shares during the last quarter. Invesco Ltd. raised its stake in shares of Ferguson by 13.8% during the 1st quarter. Invesco Ltd. now owns 6,818,800 shares of the company's stock valued at $1,092,576,000 after buying an additional 827,355 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in shares of Ferguson by 65.0% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 4,454,467 shares of the company's stock valued at $713,740,000 after buying an additional 1,755,464 shares during the last quarter. Finally, Franklin Resources Inc. raised its stake in shares of Ferguson by 39.3% during the 2nd quarter. Franklin Resources Inc. now owns 4,255,661 shares of the company's stock valued at $926,830,000 after buying an additional 1,201,493 shares during the last quarter. Hedge funds and other institutional investors own 81.98% of the company's stock.

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.