Diversified Management Inc. Decreases Stake in Ferguson plc $FERG

Key Points

• Diversified Management Inc. cut its Ferguson stake by 81% in the second quarter, selling 14,059 shares and retaining 3,299 shares worth approximately $783,000. Institutional investors and hedge funds own about 81.98% of Ferguson’s stock.
• Ferguson reported quarterly earnings of $3.39 per share, beating the $3.23 consensus estimate, on $8.75 billion in revenue. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $284.86.
• The company approved a $2 billion share-repurchase program covering up to 3.9% of outstanding shares and declared a quarterly dividend of $0.89 per share, representing a 1.4% annualized yield.

Diversified Management Inc. decreased its holdings in Ferguson plc (NYSE:FERG - Free Report) by 81.0% during the 2nd quarter, according to its most recent disclosure with the SEC. The firm owned 3,299 shares of the company's stock after selling 14,059 shares during the period. Diversified Management Inc.'s holdings in Ferguson were worth $783,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Basepoint Wealth LLC acquired a new stake in shares of Ferguson in the fourth quarter worth $26,000. Leonteq Securities AG acquired a new stake in Ferguson in the 4th quarter valued at $26,000. Zions Bancorporation National Association UT raised its position in Ferguson by 123.4% in the fourth quarter. Zions Bancorporation National Association UT now owns 143 shares of the company's stock valued at $32,000 after purchasing an additional 79 shares during the period. Johnson Financial Group Inc. acquired a new position in shares of Ferguson during the third quarter worth about $34,000. Finally, Eastern Bank acquired a new position in shares of Ferguson during the second quarter worth about $42,000. 81.98% of the stock is owned by institutional investors and hedge funds.

Ferguson Stock Down 4.3%

Shares of Ferguson stock opened at $252.52 on Wednesday. Ferguson plc has a 1-year low of $207.64 and a 1-year high of $271.64. The company has a market capitalization of $48.97 billion, a PE ratio of 29.36, a P/E/G ratio of 1.87 and a beta of 1.14. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.78 and a quick ratio of 0.96. The business has a 50-day moving average of $234.66 and a 200-day moving average of $240.91.

Ferguson (NYSE:FERG - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported $3.39 EPS for the quarter, topping the consensus estimate of $3.23 by $0.16. The business had revenue of $8.75 billion for the quarter. Ferguson had a return on equity of 37.68% and a net margin of 6.82%. As a group, equities analysts forecast that Ferguson plc will post 11.25 EPS for the current fiscal year.

Ferguson declared that its board has approved a stock buyback plan on Tuesday, May 5th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to repurchase up to 3.9% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's management believes its stock is undervalued.

Ferguson Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Friday, August 21st will be issued a dividend of $0.89 per share. The ex-dividend date is Friday, August 21st. This represents a $3.56 annualized dividend and a yield of 1.4%. Ferguson's payout ratio is currently 41.40%.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the company. Wells Fargo & Company increased their target price on Ferguson from $285.00 to $295.00 and gave the company an "overweight" rating in a research note on Tuesday. Royal Bank Of Canada boosted their price target on Ferguson from $281.00 to $290.00 and gave the stock an "outperform" rating in a research report on Tuesday. Barclays upped their price target on Ferguson from $297.00 to $313.00 and gave the stock an "overweight" rating in a report on Tuesday. UBS Group increased their price objective on shares of Ferguson from $252.00 to $256.00 and gave the company a "neutral" rating in a research report on Tuesday. Finally, Weiss Ratings upgraded shares of Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 2nd. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $284.86.

Ferguson News Summary

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: Ferguson reported second-quarter adjusted earnings of $3.39 per share, above the $3.23 consensus estimate, on revenue of $8.75 billion. Management cited market outperformance, strong non-residential growth and a return to residential growth despite a challenging backdrop. The company also completed five acquisitions and agreed to acquire FloWorks, expanding its distribution platform. Ferguson Reports Second Quarter Ended June 30, 2026
• Positive Sentiment: Analysts raised their expectations following the earnings beat and improved outlook. Wells Fargo increased its price target to $295 from $285 and maintained an “overweight” rating, while Robert W. Baird raised its target to $288 from $285 and kept an “outperform” rating. These targets imply meaningful potential upside from the recent trading level. Ferguson Analysts Boost Their Forecasts Following Better-Than-Expected Q2 Earnings
• Neutral Sentiment: Ferguson narrowed its full-year sales guidance while remaining optimistic about business trends. It also raised its capital expenditure forecast to $375 million-$425 million, signaling continued investment but potentially limiting near-term free-cash-flow growth. Ferguson Beats Earnings Estimates and Narrows Full-Year Sales Guidance
• Negative Sentiment: Ferguson priced $1.2 billion of senior unsecured notes, consisting of $700 million of 4.8% notes due 2029 and $500 million of 5.6% notes due 2036. The financing provides funds for general corporate purposes, acquisitions or refinancing, but increases debt and future interest costs at a time when investors are monitoring leverage. Ferguson Prices $1.2 Billion of Senior Unsecured Notes

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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