Diamond Hill Capital Management Inc. Has $217.74 Million Stock Position in Ferguson plc $FERG

Key Points

• Diamond Hill Capital Management cut its Ferguson stake by 36.6% in the fourth quarter, though it still held 978,046 shares valued at about $217.7 million.
• Ferguson reported better-than-expected earnings for the quarter, with EPS of $2.28 versus analyst estimates of $2.14, while revenue rose 3.6% year over year to $7.47 billion.
• The company authorized a $2 billion share buyback and announced a quarterly dividend of $0.89 per share, while analysts maintain a consensus rating of Moderate Buy with an average price target of $269.73.

Diamond Hill Capital Management Inc. reduced its stake in Ferguson plc (NYSE:FERG - Free Report) by 36.6% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 978,046 shares of the company's stock after selling 563,831 shares during the quarter. Diamond Hill Capital Management Inc. owned about 0.50% of Ferguson worth $217,742,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Ferguson by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 19,418,334 shares of the company's stock worth $4,323,104,000 after acquiring an additional 102,850 shares during the period. State Street Corp lifted its stake in shares of Ferguson by 1.9% in the third quarter. State Street Corp now owns 4,437,468 shares of the company's stock worth $1,000,152,000 after acquiring an additional 81,094 shares during the period. Franklin Resources Inc. lifted its stake in shares of Ferguson by 2.6% in the third quarter. Franklin Resources Inc. now owns 4,367,818 shares of the company's stock worth $980,921,000 after acquiring an additional 112,157 shares during the period. Wellington Management Group LLP lifted its stake in shares of Ferguson by 22.4% in the third quarter. Wellington Management Group LLP now owns 3,734,911 shares of the company's stock worth $838,786,000 after acquiring an additional 682,666 shares during the period. Finally, Soroban Capital Partners LP lifted its stake in Ferguson by 2.8% in the second quarter. Soroban Capital Partners LP now owns 3,705,056 shares of the company's stock valued at $806,776,000 after buying an additional 100,559 shares during the period. 81.98% of the stock is owned by institutional investors and hedge funds.

Ferguson Price Performance

Shares of NYSE:FERG opened at $223.93 on Friday. The company has a quick ratio of 1.01, a current ratio of 1.88 and a debt-to-equity ratio of 0.68. Ferguson plc has a twelve month low of $176.26 and a twelve month high of $271.64. The stock's 50 day moving average is $240.29 and its 200-day moving average is $242.95. The firm has a market capitalization of $43.43 billion, a price-to-earnings ratio of 26.04, a PEG ratio of 1.60 and a beta of 1.23.

Ferguson (NYSE:FERG - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $2.28 earnings per share for the quarter, topping analysts' consensus estimates of $2.14 by $0.14. Ferguson had a return on equity of 38.92% and a net margin of 6.98%.The company had revenue of $7.47 billion for the quarter. During the same period in the previous year, the company earned $2.50 earnings per share. Ferguson's revenue for the quarter was up 3.6% compared to the same quarter last year. Sell-side analysts forecast that Ferguson plc will post 11.25 EPS for the current fiscal year.

Ferguson declared that its Board of Directors has authorized a share repurchase program on Tuesday, May 5th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to purchase up to 3.9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Ferguson Dividend Announcement

The company 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 presently 41.40%.

Analyst Ratings Changes

Several equities analysts have issued reports on FERG shares. Oppenheimer boosted their price target on Ferguson from $255.00 to $280.00 and gave the company an "outperform" rating in a research note on Wednesday, February 25th. UBS Group boosted their price target on Ferguson from $220.00 to $252.00 and gave the company a "neutral" rating in a research note on Wednesday, February 25th. Barclays boosted their price target on Ferguson from $295.00 to $297.00 and gave the company an "overweight" rating in a research note on Friday, May 8th. Weiss Ratings lowered Ferguson from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, May 6th. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $300.00 price target on shares of Ferguson in a research note on Tuesday, February 24th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $269.73.

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.