Ferguson plc $FERG Stake Lessened by Vontobel Holding Ltd.

Key Points

• Vontobel Holding cut its Ferguson stake by 50.1% in the third quarter, selling 762,764 shares and retaining 759,187 shares worth approximately $169 million. Institutional investors collectively own about 81.98% of the company.
• Ferguson’s latest quarterly earnings exceeded expectations, with EPS of $3.39 versus the $3.23 consensus estimate and revenue of $8.75 billion. Analysts maintain a “Moderate Buy” consensus and an average price target of $285.78, above the recent share price.
• Insiders sold 37,711 shares worth approximately $8.3 million during the past quarter, though the reported transactions were made under pre-arranged Rule 10b5-1 plans. Ferguson also pays a quarterly dividend of $0.89, equivalent to $3.56 annually and a yield of roughly 1.5%.

Vontobel Holding Ltd. lowered its stake in shares of Ferguson plc (NYSE:FERG - Free Report) by 50.1% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 759,187 shares of the company's stock after selling 762,764 shares during the period. Vontobel Holding Ltd. owned approximately 0.39% of Ferguson worth $169,010,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the company. Saudi Central Bank grew its holdings in Ferguson by 88.5% during the 2nd quarter. Saudi Central Bank now owns 13,607 shares of the company's stock valued at $3,229,000 after purchasing an additional 6,389 shares in the last quarter. Munich Reinsurance Co Stock Corp in Munich lifted its holdings in Ferguson by 2.5% during the 2nd quarter. Munich Reinsurance Co Stock Corp in Munich now owns 326,515 shares of the company's stock worth $77,509,000 after buying an additional 7,916 shares during the last quarter. WINTON GROUP Ltd acquired a new position in Ferguson in the second quarter worth $2,183,000. Jones Financial Companies Lllp raised its stake in Ferguson by 13.2% during the second quarter. Jones Financial Companies Lllp now owns 96,108 shares of the company's stock worth $22,932,000 after acquiring an additional 11,196 shares during the period. Finally, Lmcg Investments LLC bought a new stake in shares of Ferguson in the 1st quarter worth approximately $1,806,000. Hedge funds and other institutional investors own 81.98% of the company's stock.

Ferguson News Roundup

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: Ferguson’s most recent quarterly results exceeded expectations, with earnings per share of $3.39 versus the $3.23 consensus estimate. Analysts maintain a “Moderate Buy” consensus and an average price target of $285.78, well above recent trading levels, which may support investor confidence.
• Positive Sentiment: The company continues to offer shareholder returns through its quarterly dividend, equivalent to $3.56 annually and a yield of approximately 1.6%. Ferguson also retains strong profitability, including a reported 37.24% return on equity.
• Neutral Sentiment: Several Ferguson executives and insiders reported stock sales during the week, including COO William Thees Jr., VP Anthony Camposano, Ian Graham, Jake Schlicher, Allison Stirrup and Kevin Murphy. The reported transactions involved thousands of shares and several million dollars in aggregate proceeds. Ferguson insider trading report
• Neutral Sentiment: All of the disclosed sales were executed under pre-arranged Rule 10b5-1 trading plans. That reduces their significance as a signal that management expects Ferguson’s business or valuation to weaken, particularly because the sellers retained substantial positions.
• Negative Sentiment: The concentration of insider selling could nevertheless create modest near-term pressure on sentiment and may limit the stock’s upside, especially with Ferguson trading below its 200-day moving average.

Insiders Place Their Bets

In other Ferguson news, insider Ian Graham sold 1,854 shares of the business's stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $218.74, for a total transaction of $405,543.96. Following the sale, the insider directly owned 11,511 shares of the company's stock, valued at $2,517,916.14. The trade was a 13.87% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kevin Murphy sold 11,259 shares of the company's stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $216.78, for a total value of $2,440,726.02. Following the sale, the insider owned 173,863 shares in the company, valued at approximately $37,690,021.14. This represents a 6.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 37,711 shares of company stock valued at $8,319,277 in the last quarter. Company insiders own 0.15% of the company's stock.

Ferguson Price Performance

Shares of Ferguson stock traded up $2.66 during midday trading on Friday, reaching $231.42. The company had a trading volume of 2,143,287 shares, compared to its average volume of 1,429,344. The company has a market capitalization of $44.77 billion, a price-to-earnings ratio of 27.19, a price-to-earnings-growth ratio of 1.65 and a beta of 1.14. Ferguson plc has a 1-year low of $212.13 and a 1-year high of $271.64. The company has a current ratio of 1.73, a quick ratio of 0.93 and a debt-to-equity ratio of 0.72. The stock has a fifty day simple moving average of $228.04 and a 200 day simple moving average of $234.52.

Ferguson (NYSE:FERG - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported $3.39 earnings per share for the quarter, beating the consensus estimate of $3.23 by $0.16. The business had revenue of $8.75 billion for the quarter. Ferguson had a net margin of 6.82% and a return on equity of 37.24%. As a group, equities research analysts forecast that Ferguson plc will post 11.42 earnings per share for the current year.

Ferguson Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Friday, August 21st were paid a $0.89 dividend. The ex-dividend date was Friday, August 21st. This represents a $3.56 annualized dividend and a yield of 1.5%. Ferguson's payout ratio is presently 41.83%.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Melius Research initiated coverage on shares of Ferguson in a research note on Tuesday, October 6th. They set a "hold" rating and a $252.00 price objective on the stock. Royal Bank Of Canada reduced their target price on Ferguson from $290.00 to $286.00 and set an "outperform" rating for the company in a report on Wednesday, October 7th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $261.00 price objective on shares of Ferguson in a research report on Tuesday, August 18th. Jefferies Financial Group set a $295.00 price target on shares of Ferguson in a report on Thursday, September 3rd. Finally, Sanford C. Bernstein upped their target price on Ferguson from $310.00 to $325.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 11th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $285.78.

Ferguson Profile

Ferguson plc NYSE: FERG is a North American distributor of plumbing and heating products, supplying professional customers across the residential, commercial, industrial and infrastructure markets. The company serves contractors, builders, remodelers, municipalities, industrial businesses and other trade professionals through branch locations, distribution centers and digital ordering platforms.

Its product offerings include plumbing supplies and fixtures, heating and cooling equipment, water and wastewater products, fire protection systems, waterworks materials, industrial piping and related maintenance, repair and operating supplies.

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