Ferguson (NYSE:FERG) Price Target Raised to $295.00

Key Points

• Wells Fargo raised Ferguson’s price target from $285 to $295 while maintaining an “overweight” rating, implying 11.84% upside from the prior close.
• Analyst sentiment remains broadly positive, with Ferguson carrying a “Moderate Buy” consensus rating and an average price target of $280.71; targets range from $265 to $313.
• Ferguson recently beat quarterly earnings expectations, reporting $3.39 in EPS versus the $3.23 consensus, and has authorized a $2 billion share buyback covering up to 3.9% of outstanding shares.

Ferguson (NYSE:FERG - Get Free Report) had its price objective boosted by equities research analysts at Wells Fargo & Company from $285.00 to $295.00 in a note issued to investors on Tuesday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's price target suggests a potential upside of 11.84% from the company's previous close.

A number of other research firms also recently issued reports on FERG. Oppenheimer reaffirmed an "outperform" rating on shares of Ferguson in a report on Tuesday. Citigroup reissued a "neutral" rating on shares of Ferguson in a research report on Wednesday, May 6th. Barclays restated an "overweight" rating and set a $313.00 price target on shares of Ferguson in a report on Tuesday. Royal Bank Of Canada upped their price objective on shares of Ferguson from $271.00 to $281.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 6th. Finally, The Goldman Sachs Group cut shares of Ferguson from a "buy" rating to a "neutral" rating and dropped their target price for the stock from $315.00 to $265.00 in a research report on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Ferguson currently has a consensus rating of "Moderate Buy" and an average target price of $280.71.

Ferguson Stock Performance

Shares of Ferguson stock opened at $263.76 on Tuesday. Ferguson has a 52 week low of $207.64 and a 52 week high of $271.64. The company has a quick ratio of 0.96, a current ratio of 1.78 and a debt-to-equity ratio of 0.68. The business has a 50 day moving average price of $234.16 and a 200-day moving average price of $240.89. The company has a market cap of $51.15 billion, a PE ratio of 30.67, a price-to-earnings-growth ratio of 1.82 and a beta of 1.14.

Ferguson (NYSE:FERG - Get Free Report) last announced its earnings results on Monday, August 10th. The company reported $3.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.23 by $0.16. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.The company had revenue of $8.75 billion for the quarter. Equities analysts anticipate that Ferguson will post 11.25 earnings per share for the current fiscal year.

Ferguson announced that its board has approved a stock buyback plan on Tuesday, May 5th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 3.9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On Ferguson

Several large investors have recently modified their holdings of FERG. Basepoint Wealth LLC bought a new position in Ferguson in the 4th quarter worth approximately $26,000. Leonteq Securities AG purchased a new stake in shares of Ferguson during the fourth quarter worth $26,000. Zions Bancorporation National Association UT lifted its position in shares of Ferguson by 123.4% during the fourth quarter. Zions Bancorporation National Association UT now owns 143 shares of the company's stock worth $32,000 after acquiring an additional 79 shares in the last quarter. Johnson Financial Group Inc. bought a new position in shares of Ferguson in the third quarter worth $34,000. Finally, Eastern Bank bought a new stake in shares of Ferguson during the 2nd quarter valued at $42,000. Hedge funds and other institutional investors own 81.98% of the company's stock.

About Ferguson

Ferguson NYSE: FERG is a multinational distributor specializing in plumbing and heating products and related building supplies, serving professional contractors, builders and industrial customers. The company supplies a broad range of products used in residential, commercial and infrastructure projects, including pipes and fittings, valves and controls, HVAC equipment, waterworks materials, plumbing fixtures, pumps and accessories, as well as complementary electrical and specialty product lines.

Ferguson operates a network of branches and distribution centers that provide inventory, logistics and value-added services to trade customers.

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