Atreides Management LP Decreases Stock Position in Ferguson plc $FERG

Key Points

• Atreides Management reduced its Ferguson position by 17.7% in the first quarter, selling 31,562 shares and retaining 146,355 shares valued at approximately $34.1 million. Institutional investors collectively own 81.98% of Ferguson.
• Ferguson reported quarterly revenue of $7.47 billion and earnings of $2.28 per share, exceeding the $2.14 consensus estimate, while revenue increased 3.6% year over year.
• The company declared a quarterly dividend of $0.89 and authorized a $2 billion share buyback, equivalent to up to 3.9% of outstanding shares. Analysts maintain a “Moderate Buy” consensus rating with a $277.21 average price target.

Atreides Management LP cut its position in Ferguson plc (NYSE:FERG - Free Report) by 17.7% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 146,355 shares of the company's stock after selling 31,562 shares during the quarter. Atreides Management LP owned about 0.08% of Ferguson worth $34,139,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in FERG. Signaturefd LLC increased its holdings in Ferguson by 1.1% in the 4th quarter. Signaturefd LLC now owns 3,979 shares of the company's stock worth $886,000 after acquiring an additional 44 shares during the last quarter. Simplicity Wealth LLC boosted its holdings in Ferguson by 1.6% in the 4th quarter. Simplicity Wealth LLC now owns 3,132 shares of the company's stock worth $697,000 after buying an additional 48 shares during the period. Sivia Capital Partners LLC boosted its holdings in Ferguson by 2.9% in the 4th quarter. Sivia Capital Partners LLC now owns 1,685 shares of the company's stock worth $375,000 after buying an additional 48 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in Ferguson by 7.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company's stock valued at $150,000 after buying an additional 48 shares in the last quarter. Finally, REAP Financial Group LLC grew its stake in Ferguson by 13.4% in the 4th quarter. REAP Financial Group LLC now owns 431 shares of the company's stock valued at $96,000 after buying an additional 51 shares in the last quarter. Hedge funds and other institutional investors own 81.98% of the company's stock.

Ferguson Price Performance

Ferguson stock opened at $232.69 on Wednesday. The stock has a market cap of $45.13 billion, a price-to-earnings ratio of 27.06, a PEG ratio of 1.66 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. The business has a 50-day simple moving average of $230.32 and a 200 day simple moving average of $240.67. Ferguson plc has a 52 week low of $207.64 and a 52 week high of $271.64.

Ferguson (NYSE:FERG - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $2.28 earnings per share for the quarter, beating the consensus estimate 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 for the quarter. During the same period in the previous year, the business earned $2.50 EPS. The business's revenue was up 3.6% on a year-over-year basis. On average, research analysts forecast that Ferguson plc will post 11.25 earnings per share for the current fiscal year.

Ferguson Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Friday, May 15th were paid 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 payout ratio is currently 41.40%.

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

Wall Street Analyst Weigh In

Several research firms have issued reports on FERG. The Goldman Sachs Group downgraded 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. Zelman & Associates upgraded Ferguson from a "hold" rating to an "outperform" rating and set a $285.00 price target for the company in a research report on Friday, July 17th. Royal Bank Of Canada boosted their price objective on Ferguson from $271.00 to $281.00 and gave the company an "outperform" rating in a research note on Wednesday, May 6th. Barclays raised their target price on Ferguson from $295.00 to $297.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. Finally, Citigroup reaffirmed a "neutral" rating on shares of Ferguson in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Ferguson currently has a consensus rating of "Moderate Buy" and a consensus price target of $277.21.

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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