Assetmark Inc. Acquires 47,498 Shares of Ferguson plc $FERG

Key Points

• Assetmark Inc. increased its Ferguson plc stake by 155.4% in Q1, buying 47,498 additional shares and bringing its total holdings to 78,062 shares worth about $18.2 million.
• Ferguson has seen mixed analyst sentiment: several firms raised targets or upgraded the stock, but Goldman Sachs downgraded it to neutral; the overall consensus remains Moderate Buy with a $277.21 price target.
• The company reported solid recent results, including Q2 EPS of $2.28 beating estimates, and it also paid a quarterly dividend while authorizing a $2 billion share repurchase program.

Assetmark Inc. lifted its holdings in shares of Ferguson plc (NYSE:FERG - Free Report) by 155.4% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 78,062 shares of the company's stock after purchasing an additional 47,498 shares during the quarter. Assetmark Inc.'s holdings in Ferguson were worth $18,209,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Wellington Management Group LLP raised 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 purchasing an additional 5,631,554 shares in the last quarter. Norges Bank acquired a new stake in shares of Ferguson during the 4th quarter worth approximately $498,005,000. Durable Capital Partners LP acquired a new stake in shares of Ferguson during the 3rd quarter worth approximately $244,561,000. Qube Research & Technologies Ltd increased its stake in Ferguson by 588.1% in the third quarter. Qube Research & Technologies Ltd now owns 1,087,523 shares of the company's stock valued at $244,236,000 after acquiring an additional 929,475 shares during the last quarter. Finally, Voloridge Investment Management LLC increased its stake in Ferguson by 502.8% in the third quarter. Voloridge Investment Management LLC now owns 765,725 shares of the company's stock valued at $171,967,000 after acquiring an additional 638,692 shares during the last quarter. 81.98% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on FERG. Citigroup reiterated a "neutral" rating on shares of Ferguson in a research note on Wednesday, May 6th. Barclays upped their price objective on Ferguson from $295.00 to $297.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. The Goldman Sachs Group lowered Ferguson from a "buy" rating to a "neutral" rating and reduced their price objective for the company from $315.00 to $265.00 in a research note on Monday, July 6th. Royal Bank Of Canada lifted their target price on Ferguson from $271.00 to $281.00 and gave the company an "outperform" rating in a research report on Wednesday, May 6th. Finally, Zelman & Associates raised Ferguson from a "hold" rating to an "outperform" rating and set a $285.00 target price for the company in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $277.21.

Ferguson Stock Down 0.3%

Shares of NYSE:FERG opened at $231.39 on Monday. The firm has a market cap of $44.88 billion, a P/E ratio of 26.91, a P/E/G ratio of 1.64 and a beta of 1.13. The company has a quick ratio of 0.96, a current ratio of 1.78 and a debt-to-equity ratio of 0.68. Ferguson plc has a 12-month low of $207.64 and a 12-month high of $271.64. The business has a fifty day simple moving average of $230.34 and a 200 day simple moving average of $240.39.

Ferguson (NYSE:FERG - Get Free Report) last posted 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. The company had revenue of $7.47 billion for the quarter. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.Ferguson's revenue was up 3.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.50 earnings per share. Analysts predict that Ferguson plc will post 11.27 earnings per share for the current year.

Ferguson Dividend Announcement

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

Ferguson declared that its board has initiated a share repurchase program 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 stock through open market purchases. Stock buyback programs are generally a sign that the company's board believes its shares are undervalued.

Ferguson 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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