Ferguson plc (NYSE:FERG) Short Interest Up 21.4% in March

Key Points

• Short interest rose 21.4% in March to 1,847,223 shares (about 1.0% of shares outstanding) with a days-to-cover ratio of 1.5, signaling a notable increase in bearish positioning.
• Ferguson reported $1.99 EPS for the quarter, missing estimates of $2.24 while revenue rose 3.6% year-over-year; the stock trades around $257 with a PE of 25.99 and a 1-year high of $271.64.
• The company pays a quarterly dividend of $0.89 (annualized $3.56, yield 1.4%) and has heavy institutional ownership (~81.98%), while analysts maintain a consensus "Moderate Buy" with an average target of $267.27.

Ferguson plc (NYSE:FERG - Get Free Report) was the recipient of a large increase in short interest during the month of March. As of March 31st, there was short interest totaling 1,847,223 shares, an increase of 21.4% from the March 15th total of 1,521,597 shares. Based on an average trading volume of 1,244,672 shares, the days-to-cover ratio is currently 1.5 days. Approximately 1.0% of the shares of the stock are short sold.

Ferguson Stock Up 0.1%

Shares of NYSE FERG opened at $257.33 on Friday. The firm has a market capitalization of $50.02 billion, a PE ratio of 25.99, a price-to-earnings-growth ratio of 2.09 and a beta of 1.21. The company has a current ratio of 1.88, a quick ratio of 1.01 and a debt-to-equity ratio of 0.68. Ferguson has a 1 year low of $158.68 and a 1 year high of $271.64. The firm's 50-day moving average is $243.84 and its 200-day moving average is $241.53.

Ferguson (NYSE:FERG - Get Free Report) last posted its quarterly earnings results on Tuesday, February 24th. The company reported $1.99 earnings per share for the quarter, missing analysts' consensus estimates of $2.24 by ($0.25). Ferguson had a return on equity of 40.37% and a net margin of 6.93%.During the same quarter in the prior year, the company earned $1.52 EPS. Ferguson's revenue was up 3.6% compared to the same quarter last year.

Ferguson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Shareholders of record on Friday, March 6th will be given a dividend of $0.89 per share. The ex-dividend date is Friday, March 6th. This represents a $3.56 annualized dividend and a dividend yield of 1.4%. Ferguson's payout ratio is presently 35.96%.

Institutional Inflows and Outflows

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

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on FERG shares. Weiss Ratings downgraded shares of Ferguson from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, March 27th. Royal Bank Of Canada raised their price target on shares of Ferguson from $247.00 to $271.00 and gave the company an "outperform" rating in a report on Tuesday, February 24th. Sanford C. Bernstein restated an "outperform" rating on shares of Ferguson in a research report on Thursday, January 8th. Jefferies Financial Group reaffirmed a "buy" rating and set a $300.00 price objective on shares of Ferguson in a report on Tuesday, February 24th. Finally, Truist Financial increased their price objective on Ferguson from $260.00 to $300.00 and gave the company a "buy" rating in a research report on Wednesday, February 25th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Ferguson currently has a consensus rating of "Moderate Buy" and an average target price of $267.27.

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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