Ferguson plc $FERG Shares Sold by Cumberland Partners Ltd

Key Points

• Cumberland Partners Ltd cut its Ferguson stake by 74.3% in the fourth quarter, selling 6,500 shares and leaving it with 2,245 shares valued at about $500,000.
• Several analysts remain constructive on the stock, with recent target-price hikes from firms including Oppenheimer, Truist, Jefferies, UBS, and Wells Fargo. Ferguson now has a consensus rating of Moderate Buy and an average price target of $269.73.
• Ferguson reported quarterly EPS of $2.28, beating estimates, and announced a $2.00 billion share repurchase program plus a quarterly dividend of $0.89 per share. The stock was trading at $223.37, below both its 50-day and 200-day averages.

Cumberland Partners Ltd lowered its stake in shares of Ferguson plc (NYSE:FERG - Free Report) by 74.3% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,245 shares of the company's stock after selling 6,500 shares during the quarter. Cumberland Partners Ltd's holdings in Ferguson were worth $500,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. Signaturefd LLC boosted its position in Ferguson by 1.1% during the 4th quarter. Signaturefd LLC now owns 3,979 shares of the company's stock valued at $886,000 after purchasing an additional 44 shares during the period. Simplicity Wealth LLC raised its stake in Ferguson by 1.6% during the 4th quarter. Simplicity Wealth LLC now owns 3,132 shares of the company's stock valued at $697,000 after acquiring an additional 48 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Ferguson by 7.5% during 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. Founders Grove Wealth Partners LLC raised its stake in Ferguson by 4.2% during the 4th quarter. Founders Grove Wealth Partners LLC now owns 1,353 shares of the company's stock valued at $301,000 after acquiring an additional 55 shares in the last quarter. Finally, Triad Wealth Partners LLC raised its stake in Ferguson by 4.7% during the 4th quarter. Triad Wealth Partners LLC now owns 1,219 shares of the company's stock valued at $271,000 after acquiring an additional 55 shares in the last quarter. Institutional investors and hedge funds own 81.98% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on FERG shares. Oppenheimer lifted their target price on Ferguson from $255.00 to $280.00 and gave the company an "outperform" rating in a research note on Wednesday, February 25th. Truist Financial lifted their target price on Ferguson from $260.00 to $300.00 and gave the company a "buy" rating in a research note on Wednesday, February 25th. Jefferies Financial Group reaffirmed a "buy" rating and set a $300.00 target price on shares of Ferguson in a research note on Tuesday, February 24th. UBS Group lifted their target price on Ferguson from $220.00 to $252.00 and gave the company a "neutral" rating in a research note on Wednesday, February 25th. Finally, Wells Fargo & Company lifted their target price on Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, Ferguson presently has a consensus rating of "Moderate Buy" and an average price target of $269.73.

Ferguson Stock Down 0.2%

Shares of Ferguson stock opened at $223.37 on Friday. The stock's fifty day moving average is $240.13 and its 200-day moving average is $242.81. The firm has a market capitalization of $43.32 billion, a PE ratio of 25.97, a price-to-earnings-growth ratio of 1.58 and a beta of 1.23. 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 12-month low of $176.26 and a 12-month high of $271.64.

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

Ferguson Dividend Announcement

The business 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. The ex-dividend date of this dividend is Friday, May 15th. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.6%. Ferguson's payout ratio is 41.40%.

Ferguson announced that its Board of Directors has initiated a share repurchase program on Tuesday, May 5th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the company to repurchase 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 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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