Cumberland Partners Ltd Increases Stock Position in Ferguson plc $FERG

Key Points

• Cumberland Partners Ltd boosted its stake in Ferguson plc by 631.4% in Q1, ending the period with 16,419 shares valued at about $3.83 million.
• Ferguson’s latest quarterly results beat expectations, with EPS of $2.28 versus the $2.14 consensus and revenue rising 3.6% year over year to $7.47 billion.
• The company also announced a $2 billion share buyback and paid a quarterly dividend of $0.89 per share, while analysts currently rate the stock a Moderate Buy with a consensus price target of $277.21.

Cumberland Partners Ltd increased its holdings in shares of Ferguson plc (NYSE:FERG - Free Report) by 631.4% during the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 16,419 shares of the company's stock after purchasing an additional 14,174 shares during the period. Cumberland Partners Ltd's holdings in Ferguson were worth $3,830,000 as of its most recent SEC filing.

Several other institutional investors also recently bought and sold shares of the business. Basepoint Wealth LLC purchased a new stake in Ferguson during the fourth quarter worth $26,000. Leonteq Securities AG purchased a new position in shares of Ferguson in the 4th quarter valued at $26,000. Zions Bancorporation National Association UT increased its holdings in shares of Ferguson by 123.4% in the 4th quarter. Zions Bancorporation National Association UT now owns 143 shares of the company's stock valued at $32,000 after acquiring an additional 79 shares during the period. Johnson Financial Group Inc. bought a new position in shares of Ferguson in the 3rd quarter worth $34,000. Finally, Cornerstone Planning Group LLC raised its position in shares of Ferguson by 53.9% in the 4th quarter. Cornerstone Planning Group LLC now owns 197 shares of the company's stock worth $44,000 after acquiring an additional 69 shares in the last quarter. 81.98% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

FERG has been the topic of a number of recent research reports. The Goldman Sachs Group downgraded Ferguson from a "buy" rating to a "neutral" rating and dropped their price objective for the company from $315.00 to $265.00 in a research report on Monday, July 6th. Citigroup reiterated a "neutral" rating on shares of Ferguson in a report on Wednesday, May 6th. Wells Fargo & Company increased their price target on shares of Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Weiss Ratings upgraded shares of Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 2nd. Finally, Barclays lifted their price objective on shares of Ferguson from $295.00 to $297.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, Ferguson has an average rating of "Moderate Buy" and a consensus price target of $277.21.

Ferguson Stock Up 0.7%

Shares of FERG stock opened at $230.36 on Friday. The stock's fifty day moving average price is $229.80 and its 200 day moving average price is $240.45. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.78 and a quick ratio of 0.96. Ferguson plc has a 1-year low of $207.64 and a 1-year high of $271.64. The company has a market cap of $44.68 billion, a price-to-earnings ratio of 26.79, a price-to-earnings-growth ratio of 1.61 and a beta of 1.13.

Ferguson (NYSE:FERG - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $2.28 earnings per share for the quarter, topping 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 business had revenue of $7.47 billion during the quarter. During the same period in the prior year, the business posted $2.50 EPS. Ferguson's revenue was up 3.6% compared to the same quarter last year. On average, research analysts expect that Ferguson plc will post 11.3 earnings per share for the current fiscal year.

Ferguson Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Friday, May 15th were paid a $0.89 dividend. The ex-dividend date was Friday, May 15th. This represents a $3.56 dividend on an annualized basis and a yield of 1.5%. Ferguson's dividend payout ratio (DPR) is 41.40%.

Ferguson declared that its Board of Directors has initiated a share 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 a sign that the company's management 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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