Ferguson plc $FERG Shares Acquired by QRG Capital Management Inc.

Key Points

• QRG Capital Management increased its stake in Ferguson by 61.7% in the first quarter, adding 10,936 shares and bringing its total holding to 28,650 shares valued at about $6.68 million.
• Ferguson reported better-than-expected quarterly earnings of $2.28 per share on revenue of $7.47 billion, with revenue up 3.6% year over year. The company also announced a $2 billion share buyback plan and a quarterly dividend of $0.89 per share.
• Analysts remain generally positive on the stock, with a Moderate Buy consensus and a consensus price target of $277.58. Several firms, including Barclays, Wells Fargo, and RBC, raised their price targets.

QRG Capital Management Inc. raised its position in shares of Ferguson plc (NYSE:FERG - Free Report) by 61.7% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 28,650 shares of the company's stock after buying an additional 10,936 shares during the quarter. QRG Capital Management Inc.'s holdings in Ferguson were worth $6,683,000 at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of FERG. HB Wealth Management LLC boosted its position in Ferguson by 16.2% during the 1st quarter. HB Wealth Management LLC now owns 4,769 shares of the company's stock valued at $1,112,000 after purchasing an additional 664 shares during the period. Moran Wealth Management LLC increased its position in Ferguson by 1.9% in the first quarter. Moran Wealth Management LLC now owns 25,933 shares of the company's stock worth $6,049,000 after buying an additional 482 shares during the period. PFG Investments LLC increased its position in Ferguson by 7.4% in the first quarter. PFG Investments LLC now owns 2,573 shares of the company's stock worth $600,000 after buying an additional 178 shares during the period. Baer Investment Advisory LLC bought a new stake in Ferguson in the first quarter valued at $569,000. Finally, World Investment Advisors lifted its stake in Ferguson by 450.1% in the first quarter. World Investment Advisors now owns 8,708 shares of the company's stock valued at $2,031,000 after buying an additional 7,125 shares during the last quarter. Institutional investors own 81.98% of the company's stock.

Ferguson Price Performance

Shares of Ferguson stock opened at $230.22 on Monday. Ferguson plc has a 52 week low of $207.64 and a 52 week high of $271.64. The company has a current ratio of 1.78, a quick ratio of 0.96 and a debt-to-equity ratio of 0.68. The stock has a market cap of $44.65 billion, a PE ratio of 26.77, a price-to-earnings-growth ratio of 1.63 and a beta of 1.13. The company's 50-day moving average price is $235.86 and its two-hundred day moving average price is $240.31.

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. The firm had revenue of $7.47 billion during the quarter. Ferguson had a net margin of 6.98% and a return on equity of 38.81%. The company's quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.50 earnings per share. As a group, sell-side analysts anticipate that Ferguson plc will post 11.26 EPS for the current fiscal year.

Ferguson declared that its board has authorized a stock buyback 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 generally an indication that the company's board believes its shares are undervalued.

Ferguson Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Friday, May 15th will be given a dividend of $0.89 per share. This represents a $3.56 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Friday, May 15th. Ferguson's payout ratio is presently 41.40%.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Barclays boosted their target price on shares of Ferguson from $295.00 to $297.00 and gave the company an "overweight" rating in a research note on Friday, May 8th. Weiss Ratings upgraded shares of Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday. Wells Fargo & Company lifted their price target on Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Citigroup reiterated a "neutral" rating on shares of Ferguson in a research report on Wednesday, May 6th. Finally, Royal Bank Of Canada increased their price objective on Ferguson from $271.00 to $281.00 and gave the stock an "outperform" rating in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Ferguson currently has a consensus rating of "Moderate Buy" and a consensus price target of $277.58.

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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