Ferguson plc (NYSE:FERG) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus: Ferguson has a "Moderate Buy" consensus from 17 analysts (11 buy, 4 hold, 2 strong buy) with an average 12‑month target of $267.27.
• Heavy institutional ownership: Hedge funds and institutions own 81.98% of the stock, with Vanguard holding ~19.4M shares and Wellington adding 5.63M shares in the latest quarter.
• Recent results and payout: Ferguson missed quarterly EPS ($1.99 vs. $2.24 estimate) while revenue rose 3.6% year‑over‑year, and it pays a $0.89 quarterly dividend (annualized $3.56, ~1.4% yield).

Shares of Ferguson plc (NYSE:FERG - Get Free Report) have earned a consensus rating of "Moderate Buy" from the seventeen ratings firms that are covering the stock, MarketBeat reports. Four investment analysts have rated the stock with a hold rating, eleven have issued a buy rating and two have assigned a strong buy rating to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $267.2660.

FERG has been the topic of a number of recent analyst reports. Wells Fargo & Company reduced their target price on Ferguson from $285.00 to $260.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 8th. Wall Street Zen lowered Ferguson from a "buy" rating to a "hold" rating in a research note on Saturday, January 10th. Sanford C. Bernstein reiterated an "outperform" rating on shares of Ferguson in a research note on Thursday, January 8th. Barclays increased their target price on Ferguson from $278.00 to $295.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 25th. Finally, Truist Financial increased their target price on Ferguson from $260.00 to $300.00 and gave the stock a "buy" rating in a research note on Wednesday, February 25th.

Institutional Trading of Ferguson

Hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in Ferguson by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 19,418,334 shares of the company's stock worth $4,323,104,000 after acquiring an additional 102,850 shares during the period. Wellington Management Group LLP increased its position in Ferguson by 150.8% during the 4th quarter. Wellington Management Group LLP now owns 9,366,465 shares of the company's stock valued at $2,085,256,000 after purchasing an additional 5,631,554 shares during the period. Janus Henderson Group PLC increased its position in Ferguson by 7.8% during the 4th quarter. Janus Henderson Group PLC now owns 5,981,791 shares of the company's stock valued at $1,331,621,000 after purchasing an additional 434,650 shares during the period. State Street Corp increased its position in Ferguson by 1.8% during the 4th quarter. State Street Corp now owns 4,516,764 shares of the company's stock valued at $1,005,567,000 after purchasing an additional 79,296 shares during the period. Finally, Franklin Resources Inc. lifted its position in shares of Ferguson by 0.6% in the 4th quarter. Franklin Resources Inc. now owns 4,393,603 shares of the company's stock worth $977,959,000 after purchasing an additional 25,785 shares during the period. Hedge funds and other institutional investors own 81.98% of the company's stock.

Ferguson Price Performance

FERG opened at $260.99 on Tuesday. The business has a fifty day moving average of $243.92 and a 200 day moving average of $243.82. Ferguson has a 52-week low of $166.04 and a 52-week high of $271.64. The company has a quick ratio of 1.01, a current ratio of 1.88 and a debt-to-equity ratio of 0.68. The stock has a market cap of $50.73 billion, a P/E ratio of 26.36, a PEG ratio of 1.99 and a beta of 1.23.

Ferguson (NYSE:FERG - Get Free Report) last posted its quarterly earnings data on Tuesday, February 24th. The company reported $1.99 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.24 by ($0.25). Ferguson had a net margin of 6.93% and a return on equity of 40.37%. During the same period in the previous year, the firm posted $1.52 EPS. The business's revenue was up 3.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Ferguson will post 11.2 EPS for the current year.

Ferguson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Friday, May 15th will be paid a $0.89 dividend. The ex-dividend date is Friday, May 15th. This represents a $3.56 dividend on an annualized basis and a yield of 1.4%. Ferguson's dividend payout ratio (DPR) is presently 35.96%.

Ferguson News Summary

Here are the key news stories impacting Ferguson this week:

• Neutral Sentiment: The City of Ferguson (MO) is set to vote on tax breaks for a tech hub and data center at the Emerson campus — local economic development news that does not involve Ferguson plc’s business operations. Ferguson to vote Monday on tax breaks for tech hub, data center at Emerson campus
• Neutral Sentiment: Coverage that "Ferguson limits press access" refers to a political figure using the same surname; this is political news unconnected to Ferguson plc’s financials or operations. Ferguson limits press access, breaking from past governors
• Neutral Sentiment: Celebrity coverage about Sarah Ferguson comparing a tell-all to Prince Harry’s memoir is entertainment press and unrelated to the company’s commercial prospects. Sarah Ferguson Comparing Tell-All With Prince Harry’s Memoir — Source
• Neutral Sentiment: Multiple outlets report Sir Alex Ferguson was hospitalized before a Manchester United v. Liverpool match; high-profile but unrelated to Ferguson plc’s business. Sir Alex Ferguson taken to hospital before Manchester United vs Liverpool

Ferguson Company Profile

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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