Ferguson plc $FERG Shares Sold by Madison Asset Management LLC

Key Points

• Madison Asset Management reduced its Ferguson stake by 4.7% in the second quarter, selling 17,686 shares and retaining 355,611 shares valued at approximately $84.4 million. Institutional investors collectively own 81.98% of Ferguson.
• Ferguson reported quarterly EPS of $3.39, beating consensus estimates of $3.23, on revenue of $8.75 billion. The company also authorized a $2 billion share buyback and declared a quarterly dividend of $0.89 per share.
• Analyst sentiment remains positive, with Ferguson carrying a consensus “Moderate Buy” rating and an average price target of $285.93, compared with a recent share price of $243.44.

Madison Asset Management LLC lessened its holdings in Ferguson plc (NYSE:FERG - Free Report) by 4.7% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 355,611 shares of the company's stock after selling 17,686 shares during the quarter. Ferguson accounts for approximately 1.0% of Madison Asset Management LLC's holdings, making the stock its 28th largest holding. Madison Asset Management LLC owned 0.18% of Ferguson worth $84,397,000 as of its most recent SEC filing.

A number of other large investors have also modified their holdings of the business. 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 in the last quarter. Caxton Associates LLP acquired a new position in Ferguson during the 1st quarter valued at approximately $310,000. Focus Partners Wealth increased its stake in 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 purchased a new position in shares of Ferguson in the second quarter worth $257,000. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in shares of Ferguson by 7.5% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company's stock worth $150,000 after buying an additional 48 shares during the last quarter. Hedge funds and other institutional investors own 81.98% of the company's stock.

Ferguson Stock Down 0.4%

Ferguson stock opened at $243.44 on Thursday. The stock has a market capitalization of $47.09 billion, a PE ratio of 28.31, a price-to-earnings-growth ratio of 1.71 and a beta of 1.14. Ferguson plc has a 12 month low of $207.64 and a 12 month high of $271.64. The business has a 50 day simple moving average of $236.69 and a 200-day simple moving average of $240.57. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.73 and a quick ratio of 0.93.

Ferguson (NYSE:FERG - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported $3.39 EPS for the quarter, topping the consensus estimate of $3.23 by $0.16. Ferguson had a return on equity of 37.24% and a net margin of 6.82%.The firm had revenue of $8.75 billion during the quarter. On average, analysts anticipate that Ferguson plc will post 11.39 EPS for the current fiscal year.

Ferguson declared that its board has approved a stock buyback program on Tuesday, May 5th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 3.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Ferguson Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Friday, August 21st will be issued a $0.89 dividend. The ex-dividend date is Friday, August 21st. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.5%. Ferguson's payout ratio is 41.40%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. The Goldman Sachs Group downgraded Ferguson from a "buy" rating to a "neutral" rating and dropped their price target for the company from $315.00 to $265.00 in a research note on Monday, July 6th. UBS Group raised their price objective on Ferguson from $252.00 to $256.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. Sanford C. Bernstein lifted their target price on Ferguson from $310.00 to $325.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. Robert W. Baird upped their target price on Ferguson from $285.00 to $288.00 and gave the company an "outperform" rating in a research report on Tuesday, August 11th. Finally, Zelman & Associates upgraded shares of Ferguson from a "hold" rating to an "outperform" rating and set a $285.00 price target on the stock in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus 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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