Ferguson (NYSE:FERG) Hits New 1-Year High Following Analyst Upgrade

Key Points

• Ferguson plc shares reached a new 52-week high of $245.41 after an upgrade from Wall Street Zen, which changed their rating from hold to buy.
• Multiple analysts, including Morgan Stanley and Truist Financial, have recently increased their price targets for Ferguson, with the current consensus price target set at $240.80.
• The company announced a quarterly dividend of $0.83 per share, representing an annualized yield of 1.3%, set to be paid on November 7th.

Shares of Ferguson plc (NYSE:FERG - Get Free Report) hit a new 52-week high during trading on Tuesday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The stock traded as high as $245.26 and last traded at $245.41, with a volume of 196242 shares. The stock had previously closed at $242.02.

FERG has been the subject of a number of other research reports. Morgan Stanley reissued an "overweight" rating on shares of Ferguson in a report on Wednesday, September 10th. Truist Financial boosted their price objective on shares of Ferguson from $240.00 to $260.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. UBS Group boosted their price objective on shares of Ferguson from $204.00 to $225.00 and gave the company a "neutral" rating in a report on Wednesday, September 17th. JPMorgan Chase & Co. boosted their price objective on shares of Ferguson from $225.00 to $245.00 and gave the company an "overweight" rating in a report on Wednesday, October 15th. Finally, Oppenheimer boosted their price objective on shares of Ferguson from $235.00 to $255.00 and gave the company an "outperform" rating in a report on Wednesday, September 17th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $240.80.

Insider Buying and Selling at Ferguson

In related news, SVP Jake Schlicher sold 3,000 shares of the company's stock in a transaction that occurred on Monday, October 13th. The shares were sold at an average price of $233.52, for a total transaction of $700,560.00. Following the completion of the transaction, the senior vice president directly owned 11,651 shares in the company, valued at $2,720,741.52. This represents a 20.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider James A. Paisley sold 3,000 shares of the company's stock in a transaction that occurred on Tuesday, October 14th. The stock was sold at an average price of $236.97, for a total transaction of $710,910.00. Following the transaction, the insider owned 2,211 shares of the company's stock, valued at approximately $523,940.67. This represents a 57.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 29,264 shares of company stock worth $6,853,349 over the last 90 days. 0.18% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Ferguson

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Generali Asset Management SPA SGR increased its position in Ferguson by 5.8% in the 3rd quarter. Generali Asset Management SPA SGR now owns 32,038 shares of the company's stock valued at $7,195,000 after acquiring an additional 1,744 shares during the period. True Wealth Design LLC increased its position in Ferguson by 224.6% in the 3rd quarter. True Wealth Design LLC now owns 422 shares of the company's stock valued at $95,000 after acquiring an additional 292 shares during the period. Accurate Wealth Management LLC increased its position in Ferguson by 201.2% in the 3rd quarter. Accurate Wealth Management LLC now owns 3,491 shares of the company's stock valued at $839,000 after acquiring an additional 2,332 shares during the period. Hennessy Advisors Inc. increased its position in Ferguson by 1.4% in the 3rd quarter. Hennessy Advisors Inc. now owns 15,000 shares of the company's stock valued at $3,369,000 after acquiring an additional 200 shares during the period. Finally, Allspring Global Investments Holdings LLC acquired a new position in Ferguson in the 3rd quarter valued at approximately $250,000. 81.98% of the stock is currently owned by institutional investors and hedge funds.

Ferguson Trading Up 1.8%

The business's 50-day moving average is $230.81. The company has a quick ratio of 0.94, a current ratio of 1.68 and a debt-to-equity ratio of 0.64. The firm has a market cap of $48.27 billion, a PE ratio of 26.34, a price-to-earnings-growth ratio of 1.95 and a beta of 1.17.

Ferguson (NYSE:FERG - Get Free Report) last posted its quarterly earnings data on Tuesday, September 16th. The company reported $3.48 EPS for the quarter, beating analysts' consensus estimates of $3.00 by $0.48. Ferguson had a net margin of 6.03% and a return on equity of 35.21%. The company had revenue of $8.50 billion for the quarter, compared to analyst estimates of $8.44 billion.

Ferguson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 7th. Stockholders of record on Friday, September 26th will be paid a $0.83 dividend. This represents a $3.32 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, September 26th. Ferguson's dividend payout ratio is currently 35.55%.

About Ferguson

Ferguson Enterprises Inc distributes plumbing and heating products in North America. The company provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, as well as heating, ventilation, and air conditioning (HVAC) to residential and non-residential customers.

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