California Public Employees Retirement System Trims Stake in Ferguson plc $FERG

Key Points

• CalPERS cut its Ferguson stake sharply in the first quarter, selling 230,569 shares and reducing its position by 34.7% to 433,274 shares worth about $101.1 million.
• Wall Street remains generally constructive on Ferguson, with a consensus rating of “Moderate Buy” and an average price target of $277.21, though Goldman Sachs recently downgraded the stock to neutral.
• Ferguson posted solid fundamentals and shareholder returns, beating earnings estimates last quarter with $2.28 EPS, while also paying a quarterly dividend and authorizing a $2 billion share buyback program.

California Public Employees Retirement System lowered its position in Ferguson plc (NYSE:FERG - Free Report) by 34.7% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 433,274 shares of the company's stock after selling 230,569 shares during the period. California Public Employees Retirement System owned approximately 0.22% of Ferguson worth $101,065,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently modified their holdings of the company. Signaturefd LLC boosted its holdings in Ferguson by 1.1% during the 4th quarter. Signaturefd LLC now owns 3,979 shares of the company's stock valued at $886,000 after acquiring an additional 44 shares during the period. Simplicity Wealth LLC grew its position in Ferguson by 1.6% in the 4th quarter. Simplicity Wealth LLC now owns 3,132 shares of the company's stock valued at $697,000 after acquiring an additional 48 shares during the last quarter. Sivia Capital Partners LLC lifted its position in shares of Ferguson by 2.9% during the fourth quarter. Sivia Capital Partners LLC now owns 1,685 shares of the company's stock worth $375,000 after purchasing an additional 48 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its stake in shares of Ferguson by 7.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company's stock valued at $150,000 after purchasing an additional 48 shares during the period. Finally, REAP Financial Group LLC grew its holdings in shares of Ferguson by 13.4% in the fourth quarter. REAP Financial Group LLC now owns 431 shares of the company's stock worth $96,000 after purchasing an additional 51 shares during the last quarter. Institutional investors own 81.98% of the company's stock.

Wall Street Analysts Forecast Growth

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

Ferguson Trading Down 1.2%

NYSE FERG opened at $231.39 on Friday. Ferguson plc has a 52 week low of $207.64 and a 52 week high of $271.64. The company has a 50 day moving average price of $230.34 and a 200 day moving average price of $240.30. 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 firm has a market cap of $44.88 billion, a PE ratio of 26.91, a price-to-earnings-growth ratio of 1.64 and a beta of 1.13.

Ferguson (NYSE:FERG - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, topping analysts' consensus estimates of $2.14 by $0.14. Ferguson had a net margin of 6.98% and a return on equity of 38.81%. The company had revenue of $7.47 billion during the quarter. During the same quarter last year, the business earned $2.50 earnings per share. The firm's revenue for the quarter was up 3.6% on a year-over-year basis. As a group, sell-side analysts forecast that Ferguson plc will post 11.27 EPS for the current fiscal year.

Ferguson Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Shareholders of record on Friday, May 15th were given a dividend of $0.89 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $3.56 dividend on an annualized basis and a yield of 1.5%. Ferguson's payout ratio is currently 41.40%.

Ferguson announced that its board has approved a share buyback program on Tuesday, May 5th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to buy up to 3.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's leadership believes its stock is undervalued.

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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