Ferguson plc $FERG Shares Acquired by Hsbc Holdings PLC

Key Points

• HSBC Holdings increased its Ferguson stake by 81.4% in the second quarter, acquiring 191,609 additional shares for a total holding valued at approximately $101.4 million. Institutional investors and hedge funds collectively own 81.98% of the company.
• Ferguson reported quarterly EPS of $3.39, beating analysts’ $3.23 estimate, on revenue of $8.75 billion. The company also authorized a $2 billion share-repurchase program and declared a quarterly dividend of $0.89 per share.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $285.93, compared with the stock’s reported price of $235.84.

Hsbc Holdings PLC lifted its stake in shares of Ferguson plc (NYSE:FERG - Free Report) by 81.4% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 427,091 shares of the company's stock after acquiring an additional 191,609 shares during the quarter. Hsbc Holdings PLC owned 0.22% of Ferguson worth $101,419,000 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 company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Ferguson by 23.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,262 shares of the company's stock worth $2,445,000 after purchasing an additional 2,940 shares during the period. Caxton Associates LLP acquired a new position in Ferguson in the first quarter worth approximately $310,000. Focus Partners Wealth raised its holdings in shares of Ferguson by 22.7% during the 1st quarter. Focus Partners Wealth now owns 3,140 shares of the company's stock valued at $503,000 after purchasing an additional 581 shares in the last quarter. Sivia Capital Partners LLC bought a new position in Ferguson during the second quarter valued at about $257,000. Finally, Northwestern Mutual Wealth Management Co. raised its stake in shares of Ferguson by 7.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company's stock valued at $150,000 after acquiring an additional 48 shares in the last quarter. 81.98% of the stock is currently owned by institutional investors and hedge funds.

Ferguson Trading Up 1.4%

NYSE:FERG opened at $235.84 on Thursday. The company has a quick ratio of 0.93, a current ratio of 1.73 and a debt-to-equity ratio of 0.72. Ferguson plc has a twelve month low of $207.64 and a twelve month high of $271.64. The business has a 50 day moving average price of $237.26 and a two-hundred day moving average price of $239.91. The company has a market cap of $45.62 billion, a P/E ratio of 27.71, a price-to-earnings-growth ratio of 1.61 and a beta of 1.14.

Ferguson (NYSE:FERG - Get Free Report) last posted its quarterly earnings results on Monday, August 10th. The company reported $3.39 EPS for the quarter, topping analysts' consensus estimates of $3.23 by $0.16. Ferguson had a return on equity of 37.24% and a net margin of 6.82%.The business had revenue of $8.75 billion during the quarter. As a group, analysts expect that Ferguson plc will post 11.42 EPS for the current fiscal year.

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

Ferguson Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Friday, August 21st will be paid a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Friday, August 21st. Ferguson's dividend payout ratio (DPR) is presently 41.83%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on FERG shares. Weiss Ratings raised Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, July 2nd. UBS Group lifted their price objective on Ferguson from $252.00 to $256.00 and gave the company a "neutral" rating in a report on Tuesday, August 11th. Robert W. Baird upped their target price on shares of Ferguson from $285.00 to $288.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. Sanford C. Bernstein raised their price target on Ferguson from $310.00 to $325.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $261.00 target price on shares of Ferguson in a research note on Tuesday, August 18th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $285.93.

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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