Canada Pension Plan Investment Board Sells 257,763 Shares of Ferguson plc $FERG

Key Points

• Canada Pension Plan Investment Board cut its Ferguson stake by 93.7% in the second quarter, selling 257,763 shares and retaining 17,252 shares valued at approximately $4.1 million. Institutional investors still own nearly 82% of Ferguson’s stock.
• Analysts maintain a generally positive outlook, with Ferguson carrying a “Moderate Buy” consensus rating and an average price target of $285.93. The company recently exceeded quarterly EPS expectations, reporting $3.39 versus the $3.23 consensus.
• Ferguson declared a quarterly dividend of $0.89, equivalent to a 1.6% annualized yield, and has authorized a $2 billion share-repurchase program covering up to 3.9% of outstanding shares.

Canada Pension Plan Investment Board reduced its stake in shares of Ferguson plc (NYSE:FERG - Free Report) by 93.7% during the 2nd quarter, according to its most recent 13F filing with the SEC. The firm owned 17,252 shares of the company's stock after selling 257,763 shares during the period. Canada Pension Plan Investment Board's holdings in Ferguson were worth $4,094,000 as of its most recent filing with the SEC.

Other institutional investors have also recently bought and sold shares of the company. Jones Financial Companies Lllp increased its position in shares of Ferguson by 13.2% during the second quarter. Jones Financial Companies Lllp now owns 96,108 shares of the company's stock worth $22,932,000 after acquiring an additional 11,196 shares in the last quarter. Sone Capital Management LLC lifted its position in Ferguson by 18.9% in the 2nd quarter. Sone Capital Management LLC now owns 119,297 shares of the company's stock valued at $28,313,000 after acquiring an additional 18,965 shares in the last quarter. L2 Asset Management LLC lifted its position in Ferguson by 5.2% in the 2nd quarter. L2 Asset Management LLC now owns 1,109 shares of the company's stock valued at $263,000 after acquiring an additional 55 shares in the last quarter. Vega Investment Solutions lifted its position in Ferguson by 50.5% in the 2nd quarter. Vega Investment Solutions now owns 277 shares of the company's stock valued at $66,000 after acquiring an additional 93 shares in the last quarter. Finally, Algert Global LLC acquired a new position in Ferguson in the 2nd quarter worth $2,866,000. Institutional investors own 81.98% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on FERG. Wells Fargo & Company increased their target price on Ferguson from $285.00 to $295.00 and gave the stock an "overweight" rating in a report on Tuesday, August 11th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $261.00 price objective on shares of Ferguson in a research report on Tuesday, August 18th. Weiss Ratings upgraded Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 2nd. UBS Group lifted their target price on Ferguson from $252.00 to $256.00 and gave the company a "neutral" rating in a research report on Tuesday, August 11th. Finally, Zelman & Associates upgraded Ferguson from a "hold" rating to an "outperform" rating and set a $285.00 target price on the stock in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Ferguson presently has an average rating of "Moderate Buy" and a consensus target price of $285.93.

Ferguson Trading Up 0.0%

Ferguson stock opened at $228.52 on Monday. The firm has a 50-day moving average of $236.93 and a 200-day moving average of $239.47. Ferguson plc has a one year low of $207.64 and a one year high of $271.64. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.73 and a quick ratio of 0.93. The company has a market cap of $44.21 billion, a price-to-earnings ratio of 26.85, a P/E/G ratio of 1.59 and a beta of 1.14.

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

Ferguson Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Friday, August 21st will be paid a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date is Friday, August 21st. Ferguson's dividend payout ratio (DPR) is currently 41.83%.

Ferguson announced that its Board of Directors has initiated a share repurchase program on Tuesday, May 5th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 3.9% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is 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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