Ferguson plc $FERG Shares Sold by Egerton Capital UK LLP

Key Points

• Egerton Capital UK LLP sharply reduced its Ferguson stake in the fourth quarter, selling 1.59 million shares and cutting its holdings by 61.2%. After the sale, it still owned about 1.01 million shares valued at roughly $224.5 million.
• Ferguson posted solid quarterly results, reporting EPS of $2.28 versus the $2.14 consensus estimate and revenue of $7.47 billion, up 3.6% year over year. The company also highlighted strong profitability with a 38.81% return on equity.
• The company unveiled a $2 billion share repurchase program and continued its dividend policy, declaring a quarterly payout of $0.89 per share. Wall Street remains broadly positive, with analysts assigning Ferguson a Moderate Buy rating and an average price target of $273.64.

Egerton Capital UK LLP lessened its holdings in shares of Ferguson plc (NYSE:FERG - Free Report) by 61.2% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,008,314 shares of the company's stock after selling 1,591,910 shares during the period. Ferguson makes up approximately 2.4% of Egerton Capital UK LLP's portfolio, making the stock its 16th biggest holding. Egerton Capital UK LLP owned 0.52% of Ferguson worth $224,481,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. Atria Investments Inc grew its holdings in Ferguson by 38.2% in the third quarter. Atria Investments Inc now owns 15,401 shares of the company's stock valued at $3,459,000 after purchasing an additional 4,259 shares during the last quarter. Kinetic Partners Management LP grew its holdings in Ferguson by 53.4% in the third quarter. Kinetic Partners Management LP now owns 349,000 shares of the company's stock valued at $78,378,000 after purchasing an additional 121,500 shares during the last quarter. Cibc World Market Inc. grew its holdings in Ferguson by 79.6% in the third quarter. Cibc World Market Inc. now owns 12,328 shares of the company's stock valued at $2,769,000 after purchasing an additional 5,463 shares during the last quarter. Clifford Swan Investment Counsel LLC grew its holdings in Ferguson by 3.0% in the third quarter. Clifford Swan Investment Counsel LLC now owns 74,900 shares of the company's stock valued at $16,821,000 after purchasing an additional 2,208 shares during the last quarter. Finally, Fieldview Capital Management LLC acquired a new stake in Ferguson in the third quarter valued at $3,258,000. Institutional investors and hedge funds own 81.98% of the company's stock.

Ferguson Stock Performance

NYSE FERG opened at $229.14 on Monday. The business's 50-day moving average price is $241.02 and its 200 day moving average price is $241.37. Ferguson plc has a twelve month low of $207.64 and a twelve month high of $271.64. The company has a market capitalization of $44.44 billion, a PE ratio of 26.64, a price-to-earnings-growth ratio of 1.63 and a beta of 1.15. The company has a current ratio of 1.78, a quick ratio of 0.96 and a debt-to-equity ratio of 0.68.

Ferguson (NYSE:FERG - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, topping the consensus estimate of $2.14 by $0.14. The company had revenue of $7.47 billion during the quarter. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.The business's revenue was up 3.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.50 earnings per share. On average, research analysts predict that Ferguson plc will post 11.26 earnings per share for the current year.

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

Ferguson Dividend Announcement

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

Wall Street Analysts Forecast Growth

FERG has been the topic of several recent research reports. Jefferies Financial Group restated a "buy" rating and issued a $300.00 price objective on shares of Ferguson in a research report on Tuesday, February 24th. Weiss Ratings downgraded Ferguson from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 20th. Citigroup restated a "neutral" rating on shares of Ferguson in a research report on Wednesday, May 6th. Barclays upped their price objective on Ferguson from $295.00 to $297.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Finally, Wells Fargo & Company upped their price objective on Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $273.64.

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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