Ferguson (NASDAQ:FERG) Shares Gap Up on Strong Earnings

Ferguson plc (NASDAQ:FERG - Get Free Report) shares gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $180.29, but opened at $201.36. Ferguson shares last traded at $203.91, with a volume of 1,541,981 shares trading hands.

The company reported $2.50 EPS for the quarter, topping the consensus estimate of $2.06 by $0.44. Ferguson had a net margin of 5.68% and a return on equity of 34.63%. During the same quarter last year, the business earned $2.32 earnings per share. The firm's revenue for the quarter was up 4.3% on a year-over-year basis.

Ferguson Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 6th. Shareholders of record on Friday, June 20th will be paid a dividend of $0.83 per share. The ex-dividend date is Friday, June 20th. This represents a $3.32 dividend on an annualized basis and a yield of 1.54%. Ferguson's dividend payout ratio (DPR) is 40.84%.

Wall Street Analyst Weigh In

A number of research firms have commented on FERG. Oppenheimer boosted their price target on shares of Ferguson from $189.00 to $235.00 and gave the stock an "outperform" rating in a research report on Wednesday. Robert W. Baird set a $190.00 price objective on shares of Ferguson and gave the stock an "outperform" rating in a research note on Wednesday, March 12th. Royal Bank of Canada lifted their target price on shares of Ferguson from $189.00 to $231.00 and gave the stock an "outperform" rating in a research report on Wednesday. Citigroup dropped their target price on shares of Ferguson from $189.00 to $168.00 and set a "neutral" rating on the stock in a research report on Wednesday, March 12th. Finally, Wells Fargo & Company lifted their target price on shares of Ferguson from $190.00 to $230.00 and gave the stock an "overweight" rating in a research report on Wednesday. Five analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $215.23.

Institutional Trading of Ferguson

Institutional investors have recently added to or reduced their stakes in the business. Manchester Capital Management LLC lifted its stake in Ferguson by 906.7% in the fourth quarter. Manchester Capital Management LLC now owns 151 shares of the company's stock valued at $26,000 after acquiring an additional 136 shares during the last quarter. LGT Financial Advisors LLC lifted its stake in Ferguson by 106.3% in the fourth quarter. LGT Financial Advisors LLC now owns 198 shares of the company's stock valued at $34,000 after acquiring an additional 102 shares during the last quarter. Grove Bank & Trust lifted its stake in shares of Ferguson by 247.4% in the first quarter. Grove Bank & Trust now owns 198 shares of the company's stock worth $32,000 after buying an additional 141 shares during the last quarter. TD Private Client Wealth LLC lifted its stake in shares of Ferguson by 56.5% in the first quarter. TD Private Client Wealth LLC now owns 205 shares of the company's stock worth $33,000 after buying an additional 74 shares during the last quarter. Finally, Whipplewood Advisors LLC lifted its stake in shares of Ferguson by 166.7% in the first quarter. Whipplewood Advisors LLC now owns 208 shares of the company's stock worth $33,000 after buying an additional 130 shares during the last quarter. 81.98% of the stock is currently owned by institutional investors and hedge funds.

Ferguson Price Performance

The stock's 50 day moving average price is $170.30 and its two-hundred day moving average price is $177.80. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.68 and a quick ratio of 0.91. The firm has a market capitalization of $43.24 billion, a price-to-earnings ratio of 25.96, a PEG ratio of 1.69 and a beta of 1.14.

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.