Baird Financial Group Inc. Trims Stock Position in Ferguson plc $FERG

Key Points

• Baird Financial Group cut its Ferguson stake by 14.6% in the second quarter, selling 19,879 shares and retaining 116,265 shares valued at approximately $27.6 million. Institutional investors and hedge funds collectively own 81.98% of Ferguson.
• Analysts remain broadly positive, with Ferguson receiving a consensus “Moderate Buy” rating and an average price target of $285.57. Several firms raised their targets to between $288 and $295, although Goldman Sachs downgraded the stock to “Neutral.”
• Ferguson exceeded quarterly earnings expectations, reporting $3.39 in EPS versus the $3.23 consensus and $8.75 billion in revenue. The company also declared a quarterly dividend of $0.89 per share, equivalent to a 1.6% annualized yield.

Baird Financial Group Inc. cut its holdings in Ferguson plc (NYSE:FERG - Free Report) by 14.6% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 116,265 shares of the company's stock after selling 19,879 shares during the quarter. Baird Financial Group Inc. owned 0.06% of Ferguson worth $27,593,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. California State Teachers Retirement System raised its position in shares of Ferguson by 23,684.2% in the second quarter. California State Teachers Retirement System now owns 69,745,828 shares of the company's stock valued at $16,552,777,000 after buying an additional 69,452,584 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Ferguson by 150.8% during the 4th quarter. Wellington Management Group LLP now owns 9,366,465 shares of the company's stock worth $2,085,256,000 after purchasing an additional 5,631,554 shares during the period. Jupiter Topco LLC acquired a new stake in shares of Ferguson in the second quarter worth $1,789,368,000. Janus Henderson Group PLC increased its holdings in Ferguson by 2.1% in the 1st quarter. Janus Henderson Group PLC now owns 6,107,108 shares of the company's stock valued at $1,424,075,000 after purchasing an additional 125,317 shares in the last quarter. Finally, State Street Corp boosted its holdings in Ferguson by 1.8% in the 4th quarter. State Street Corp now owns 4,516,764 shares of the company's stock worth $1,005,567,000 after acquiring an additional 79,296 shares during the period. 81.98% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Jefferies Financial Group set a $295.00 price objective on shares of Ferguson in a research report on Thursday, September 3rd. Royal Bank Of Canada boosted their target price on shares of Ferguson from $281.00 to $290.00 and gave the company an "outperform" rating in a research note on Tuesday, August 11th. Robert W. Baird upped their target price on Ferguson from $285.00 to $288.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. Wells Fargo & Company increased their price objective on shares of Ferguson from $285.00 to $295.00 and gave the stock an "overweight" rating in a report on Tuesday, August 11th. Finally, The Goldman Sachs Group downgraded Ferguson from a "buy" rating to a "neutral" rating and cut their target price for the company from $315.00 to $265.00 in a research note on Monday, July 6th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Ferguson presently has a consensus rating of "Moderate Buy" and a consensus target price of $285.57.

Insiders Place Their Bets

In related news, insider Jake Schlicher sold 5,177 shares of the business's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $230.92, for a total value of $1,195,472.84. Following the completion of the transaction, the insider owned 9,490 shares of the company's stock, valued at $2,191,430.80. The trade was a 35.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.15% of the stock is owned by corporate insiders.

Ferguson Stock Performance

Ferguson stock opened at $221.12 on Friday. Ferguson plc has a 12-month low of $207.64 and a 12-month high of $271.64. The stock has a 50-day simple moving average of $234.83 and a 200 day simple moving average of $237.13. The stock has a market capitalization of $42.78 billion, a price-to-earnings ratio of 25.98, a P/E/G ratio of 1.55 and a beta of 1.13. The company has a quick ratio of 0.93, a current ratio of 1.73 and a debt-to-equity ratio of 0.72.

Ferguson (NYSE:FERG - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported $3.39 EPS for the quarter, topping analysts' consensus estimates of $3.23 by $0.16. The company had revenue of $8.75 billion for the quarter. Ferguson had a return on equity of 37.24% and a net margin of 6.82%. On average, research analysts anticipate that Ferguson plc will post 11.42 earnings per share for the current fiscal year.

Ferguson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Friday, August 21st will be issued a dividend of $0.89 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $3.56 annualized dividend and a dividend yield of 1.6%. Ferguson's dividend payout ratio (DPR) is currently 41.83%.

Ferguson Profile

Ferguson plc NYSE: FERG is a value-added distributor of plumbing and heating products, water and wastewater solutions, fire protection equipment, HVAC supplies, and related products. The company primarily serves professional contractors and other trade customers, helping them source products, obtain technical support, and manage projects through its distribution network and digital platforms.

Ferguson operates mainly in North America, with businesses serving residential and commercial construction, infrastructure, facilities maintenance, and industrial markets in the United States and Canada.

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