Ferguson plc $FERG Stake Lessened by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors trimmed its position by 0.5%, selling 8,305 shares and now holds 1,766,854 Ferguson shares (~0.90% of the company) valued at about $396.8 million.
• Other large moves include Norges Bank opening a new ~ $395.4M position and Franklin Resources increasing its stake to 4,255,661 shares (~$926.8M), leaving institutional investors with about 81.98% of the stock.
• Ferguson missed EPS (reported $1.99 vs. $2.24 expected), delivered modest revenue growth (~3.6% YoY), and announced a $0.89 quarterly dividend (annualized $3.56, ~1.4% yield).

Dimensional Fund Advisors LP reduced its position in shares of Ferguson plc (NYSE:FERG - Free Report) by 0.5% in the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,766,854 shares of the company's stock after selling 8,305 shares during the quarter. Dimensional Fund Advisors LP owned about 0.90% of Ferguson worth $396,805,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently modified their holdings of FERG. Norges Bank acquired a new position in Ferguson in the second quarter worth approximately $395,401,000. Franklin Resources Inc. boosted its stake in shares of Ferguson by 39.3% during the 2nd quarter. Franklin Resources Inc. now owns 4,255,661 shares of the company's stock worth $926,830,000 after acquiring an additional 1,201,493 shares in the last quarter. First Eagle Investment Management LLC acquired a new position in shares of Ferguson in the 2nd quarter worth $130,650,000. Egerton Capital UK LLP raised its position in shares of Ferguson by 16.4% during the third quarter. Egerton Capital UK LLP now owns 2,600,224 shares of the company's stock worth $583,958,000 after purchasing an additional 366,898 shares during the period. Finally, Artisan Partners Limited Partnership lifted its holdings in shares of Ferguson by 89.5% during the second quarter. Artisan Partners Limited Partnership now owns 759,687 shares of the company's stock valued at $165,422,000 after purchasing an additional 358,853 shares during the last quarter. Institutional investors own 81.98% of the company's stock.

Ferguson Price Performance

Shares of Ferguson stock opened at $247.27 on Thursday. The company has a current ratio of 1.88, a quick ratio of 1.01 and a debt-to-equity ratio of 0.68. The firm has a fifty day simple moving average of $248.43 and a 200-day simple moving average of $240.57. The stock has a market capitalization of $48.09 billion, a price-to-earnings ratio of 24.98, a PEG ratio of 2.04 and a beta of 1.17. Ferguson plc has a 1-year low of $146.00 and a 1-year high of $271.64.

Ferguson (NYSE:FERG - Get Free Report) last released its earnings results on Tuesday, February 24th. The company reported $1.99 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.24 by ($0.25). Ferguson had a net margin of 6.28% and a return on equity of 35.73%. During the same period last year, the business posted $1.52 earnings per share. The company's revenue for the quarter was up 3.6% compared to the same quarter last year.

Ferguson Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Friday, March 6th will be paid a $0.89 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $3.56 annualized dividend and a yield of 1.4%. Ferguson's payout ratio is currently 35.96%.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Barclays upped their price target on shares of Ferguson from $278.00 to $295.00 and gave the company an "overweight" rating in a research report on Wednesday, February 25th. Jefferies Financial Group reissued a "buy" rating and set a $300.00 target price on shares of Ferguson in a research note on Tuesday, February 24th. Wall Street Zen lowered Ferguson from a "buy" rating to a "hold" rating in a report on Saturday, January 10th. UBS Group lifted their price target on Ferguson from $220.00 to $252.00 and gave the company a "neutral" rating in a report on Wednesday, February 25th. Finally, Royal Bank Of Canada increased their price objective on Ferguson from $247.00 to $271.00 and gave the stock an "outperform" rating in a research note on Tuesday, February 24th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $262.62.

Key Headlines Impacting Ferguson

Here are the key news stories impacting Ferguson this week:

• Neutral Sentiment: Director/PDMR shareholding notice filed for Ferguson Enterprises Inc.; disclosure names Kelly Baker as a director and records an initial notification of transactions — limited detail provided so impact on FERG is unclear. Ferguson Enterprises Inc. Director/PDMR Shareholding
• Neutral Sentiment: Two sports items report a player named Ferguson traveling to England for ankle treatment (Roma/club concern) — football injury coverage, unrelated to Ferguson plc’s business. Roma worried as Ferguson flies back Ferguson flies to England to continue ankle injury recovery
• Neutral Sentiment: Multiple celebrity/royal pieces discuss Sarah Ferguson (public scrutiny after links to Prince Andrew/Jeffrey Epstein, comeback struggles, and alleged financial schemes); these are reputational stories about an individual and do not have an obvious connection to Ferguson plc. Sarah Ferguson 'homeless' after Epstein relation Why Sarah Ferguson’s comeback playbook may be failing Sarah Ferguson pursues money-making scheme Sarah Ferguson 'Will Find It Very Hard to Come Back' Royal Fallout: Sarah Ferguson scrutinized
• Neutral Sentiment: Entertainment items on Rebecca Ferguson (actress) and Jesse Tyler Ferguson (actor) concern fashion and casting preferences — no clear relevance to Ferguson plc’s fundamentals. Rebecca Ferguson evening wear Jesse Tyler Ferguson on spinoff
• Neutral Sentiment: Local political clip cites a Gov. Ferguson signaling an income tax bill may be dying in the session — regional policy news unlikely to affect the UK-headquartered distributor FERG materially. Gov. Ferguson signaling income tax bill may be dead
• Negative Sentiment: Ferguson plc’s own quarterly report (Feb. 24) missed EPS consensus (reported $1.99 vs. $2.24 expected); revenue grew modestly year-over-year (~3.6%) but the EPS miss and commentary on margins/market conditions are the most direct drivers putting downward pressure on the stock.

About Ferguson

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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