Ferguson plc $FERG Position Increased by Northwestern Mutual Wealth Management Co.

Key Points

• Northwestern Mutual Wealth Management massively increased its Ferguson stake in Q4, boosting holdings by 22,770.6% to 104,976 shares worth about $23.4 million.
• Ferguson reported better-than-expected quarterly earnings of $2.28 per share versus $2.14 expected, while revenue rose 3.6% year over year to $7.47 billion.
• The company announced a quarterly dividend of $0.89 per share and authorized a $2 billion share buyback, which could support the stock and signals confidence from management.

Northwestern Mutual Wealth Management Co. raised its holdings in shares of Ferguson plc (NYSE:FERG - Free Report) by 22,770.6% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 104,976 shares of the company's stock after buying an additional 104,517 shares during the period. Northwestern Mutual Wealth Management Co. owned about 0.05% of Ferguson worth $23,371,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Durable Capital Partners LP acquired a new position in Ferguson in the 3rd quarter worth approximately $244,561,000. Qube Research & Technologies Ltd lifted its position in Ferguson by 588.1% in the 3rd quarter. Qube Research & Technologies Ltd now owns 1,087,523 shares of the company's stock worth $244,236,000 after buying an additional 929,475 shares in the last quarter. Wellington Management Group LLP lifted its position in Ferguson by 22.4% in the 3rd quarter. Wellington Management Group LLP now owns 3,734,911 shares of the company's stock worth $838,786,000 after buying an additional 682,666 shares in the last quarter. 59 North Capital Management LP lifted its position in Ferguson by 114.7% in the 3rd quarter. 59 North Capital Management LP now owns 1,255,137 shares of the company's stock worth $281,879,000 after buying an additional 670,473 shares in the last quarter. Finally, Voloridge Investment Management LLC lifted its position in Ferguson by 502.8% in the 3rd quarter. Voloridge Investment Management LLC now owns 765,725 shares of the company's stock worth $171,967,000 after buying an additional 638,692 shares in the last quarter. 81.98% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Jefferies Financial Group reiterated a "buy" rating and issued a $300.00 target price on shares of Ferguson in a research report on Tuesday, February 24th. Wells Fargo & Company increased their target price on shares of Ferguson from $260.00 to $285.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Barclays increased their target price 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. UBS Group increased their target price on shares of Ferguson from $220.00 to $252.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 25th. Finally, Weiss Ratings downgraded shares of Ferguson from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, May 6th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $269.73.

Ferguson Stock Up 0.4%

Ferguson stock opened at $220.85 on Wednesday. The company has a market capitalization of $42.83 billion, a P/E ratio of 25.68, a P/E/G ratio of 1.56 and a beta of 1.23. The firm's fifty day simple moving average is $240.48 and its 200-day simple moving average is $243.27. The company has a current ratio of 1.88, a quick ratio of 1.01 and a debt-to-equity ratio of 0.68. Ferguson plc has a 1-year low of $176.26 and a 1-year high of $271.64.

Ferguson (NYSE:FERG - Get Free Report) last released its quarterly 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. The business had revenue of $7.47 billion for the quarter. Ferguson had a net margin of 6.98% and a return on equity of 38.92%. The firm's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.50 EPS. Sell-side analysts forecast that Ferguson plc will post 11.25 earnings per share for the current fiscal year.

Ferguson Announces Dividend

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

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

About Ferguson

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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