Clearbridge Investments LLC Acquires 382,080 Shares of Ferguson plc $FERG

Key Points

• Clearbridge Investments significantly increased its Ferguson stake in the fourth quarter, boosting holdings by 221.5% after buying 382,080 shares. It now owns 554,575 shares worth about $123.5 million.
• Ferguson’s latest earnings beat expectations, with quarterly EPS of $2.28 topping estimates of $2.14 and revenue rising 3.6% year over year to $7.47 billion. Analysts currently rate the stock a Moderate Buy with an average price target of $273.64.
• The company also authorized a $2 billion share buyback and declared a quarterly dividend of $0.89 per share, implying a 1.6% annualized yield. Shares were down slightly, opening at $229.14, below the consensus price target.

Clearbridge Investments LLC lifted its holdings in shares of Ferguson plc (NYSE:FERG - Free Report) by 221.5% in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 554,575 shares of the company's stock after acquiring an additional 382,080 shares during the period. Clearbridge Investments LLC owned approximately 0.28% of Ferguson worth $123,465,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Signaturefd LLC increased its position in shares of Ferguson by 1.1% during the fourth quarter. Signaturefd LLC now owns 3,979 shares of the company's stock worth $886,000 after acquiring an additional 44 shares in the last quarter. Simplicity Wealth LLC increased its position in shares of Ferguson by 1.6% during the fourth quarter. Simplicity Wealth LLC now owns 3,132 shares of the company's stock worth $697,000 after acquiring an additional 48 shares in the last quarter. Sivia Capital Partners LLC increased 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 acquiring an additional 48 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position 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 worth $150,000 after acquiring an additional 48 shares in the last quarter. Finally, REAP Financial Group LLC increased its position in shares of Ferguson by 13.4% during the fourth quarter. REAP Financial Group LLC now owns 431 shares of the company's stock worth $96,000 after acquiring an additional 51 shares in the last quarter. 81.98% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Citigroup reissued a "neutral" rating on shares of Ferguson in a research report on Wednesday, May 6th. Weiss Ratings cut shares of Ferguson from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 20th. Barclays boosted their price target on shares of Ferguson from $295.00 to $297.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Truist Financial boosted their price target on shares of Ferguson from $260.00 to $300.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. Finally, Jefferies Financial Group restated a "buy" rating and set a $300.00 price target on shares of Ferguson in a report on Tuesday, February 24th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $273.64.

Ferguson Stock Down 0.2%

Ferguson stock opened at $229.14 on Monday. Ferguson plc has a fifty-two week low of $207.64 and a fifty-two week high of $271.64. The firm's 50-day simple moving average is $241.02 and its 200 day simple moving average is $241.37. The stock has a market cap of $44.44 billion, a PE ratio of 26.64, a price-to-earnings-growth ratio of 1.63 and a beta of 1.15. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.96 and a current ratio of 1.78.

Ferguson (NYSE:FERG - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $2.28 earnings per share for the quarter, beating 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 firm had revenue of $7.47 billion during the quarter. During the same period in the prior year, the company earned $2.50 earnings per share. The firm's revenue was up 3.6% on a year-over-year basis. Research analysts predict that Ferguson plc will post 11.26 EPS for the current fiscal year.

Ferguson declared that its board has authorized a share buyback plan on Tuesday, May 5th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 3.9% of its shares through open market purchases. Shares buyback plans are often a sign that the company's leadership believes its shares are undervalued.

Ferguson Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Friday, May 15th will be given a dividend of $0.89 per share. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, May 15th. Ferguson's dividend payout ratio is currently 41.40%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.