Ferguson plc (NYSE:FERG) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts are broadly positive on Ferguson, with the stock earning a consensus "Moderate Buy" from 18 brokerages. The average 12-month price target is about $277.21.
• Recent analyst actions were mixed: Goldman Sachs downgraded Ferguson to neutral and cut its target to $265, while others such as Zelman, RBC, and Wells Fargo issued bullish ratings and higher price targets.
• Ferguson reported better-than-expected quarterly earnings of $2.28 per share versus $2.14 expected, and it also authorized a $2 billion share repurchase plan and pays a quarterly dividend yielding about 1.5%.

Ferguson plc (NYSE:FERG - Get Free Report) has earned an average recommendation of "Moderate Buy" from the eighteen brokerages that are covering the firm, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price target among analysts that have covered the stock in the last year is $277.2136.

FERG has been the subject of several recent research reports. Weiss Ratings upgraded Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 2nd. The Goldman Sachs Group cut Ferguson from a "buy" rating to a "neutral" rating and dropped their price objective for the company from $315.00 to $265.00 in a research note on Monday, July 6th. Zelman & Associates raised shares of Ferguson from a "hold" rating to an "outperform" rating and set a $285.00 price objective on the stock in a report on Friday. Royal Bank Of Canada upped their target price on shares of Ferguson from $271.00 to $281.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 6th. Finally, Wells Fargo & Company raised their price target on shares of Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th.

Ferguson Price Performance

Shares of NYSE FERG opened at $231.39 on Friday. The stock has a market cap of $44.88 billion, a price-to-earnings ratio of 26.91, a PEG ratio of 1.64 and a beta of 1.13. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.96 and a current ratio of 1.78. Ferguson has a fifty-two week low of $207.64 and a fifty-two week high of $271.64. The firm's 50-day simple moving average is $230.34 and its 200 day simple moving average is $240.30.

Ferguson (NYSE:FERG - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, topping analysts' consensus estimates of $2.14 by $0.14. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.The firm had revenue of $7.47 billion during the quarter. During the same period in the prior year, the firm posted $2.50 earnings per share. The business's revenue for the quarter was up 3.6% on a year-over-year basis. As a group, research analysts anticipate that Ferguson will post 11.27 earnings per share for the current fiscal year.

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

Ferguson Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Friday, May 15th were given a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Friday, May 15th. Ferguson's dividend payout ratio is presently 41.40%.

Hedge Funds Weigh In On Ferguson

Hedge funds and other institutional investors have recently modified their holdings of the business. Basepoint Wealth LLC purchased a new stake in shares of Ferguson during the fourth quarter valued at approximately $26,000. Leonteq Securities AG bought a new position in Ferguson in the 4th quarter valued at $26,000. Central Pacific Bank Trust Division bought a new position in Ferguson in the 4th quarter valued at $27,000. Zions Bancorporation National Association UT increased its position in shares of Ferguson by 123.4% during the 4th quarter. Zions Bancorporation National Association UT now owns 143 shares of the company's stock valued at $32,000 after purchasing an additional 79 shares during the last quarter. Finally, Grove Bank & Trust increased its position in shares of Ferguson by 154.4% during the 4th quarter. Grove Bank & Trust now owns 145 shares of the company's stock valued at $32,000 after purchasing an additional 88 shares during the last quarter. 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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