Ferguson plc $FERG Stock Holdings Lessened by Madison Asset Management LLC

Key Points

• Madison Asset Management reduced its Ferguson stake by 6.0% in the first quarter, selling 23,994 shares and leaving it with 373,297 shares valued at about $87.1 million.
• Analyst sentiment remains positive overall, with Ferguson carrying a consensus rating of “Moderate Buy” and an average price target of $277.21; several firms recently reiterated or raised their targets.
• Ferguson reported solid quarterly results, posting EPS of $2.28 versus the $2.14 estimate and 3.6% revenue growth year over year, while also paying a $0.89 quarterly dividend and authorizing a $2 billion share repurchase program.

Madison Asset Management LLC lessened its stake in shares of Ferguson plc (NYSE:FERG - Free Report) by 6.0% in the first quarter, according to its most recent filing with the SEC. The fund owned 373,297 shares of the company's stock after selling 23,994 shares during the period. Ferguson comprises about 1.1% of Madison Asset Management LLC's portfolio, making the stock its 25th largest holding. Madison Asset Management LLC owned 0.19% of Ferguson worth $87,075,000 as of its most recent filing with the SEC.

Several other large investors have also modified their holdings of the stock. Signaturefd LLC raised its position in shares of Ferguson by 1.1% during the fourth quarter. Signaturefd LLC now owns 3,979 shares of the company's stock worth $886,000 after purchasing an additional 44 shares during the period. Simplicity Wealth LLC boosted its position in shares of Ferguson by 1.6% in the 4th quarter. Simplicity Wealth LLC now owns 3,132 shares of the company's stock valued at $697,000 after purchasing an additional 48 shares during the period. Sivia Capital Partners LLC boosted its position in shares of Ferguson by 2.9% in the 4th quarter. Sivia Capital Partners LLC now owns 1,685 shares of the company's stock valued at $375,000 after purchasing an additional 48 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake in Ferguson by 7.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company's stock worth $150,000 after purchasing an additional 48 shares in the last quarter. Finally, REAP Financial Group LLC increased its stake in Ferguson by 13.4% in the 4th quarter. REAP Financial Group LLC now owns 431 shares of the company's stock worth $96,000 after purchasing an additional 51 shares in the last quarter. 81.98% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Citigroup reaffirmed a "neutral" rating on shares of Ferguson in a research note on Wednesday, May 6th. 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. Barclays upped their price target on shares of Ferguson from $295.00 to $297.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Weiss Ratings raised shares of Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 2nd. Finally, Wells Fargo & Company lifted their price objective on shares of Ferguson from $260.00 to $285.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $277.21.

Ferguson Trading Down 1.3%

NYSE:FERG opened at $229.04 on Tuesday. The stock has a market cap of $44.42 billion, a PE ratio of 26.63, a price-to-earnings-growth ratio of 1.64 and a beta of 1.13. Ferguson plc has a fifty-two week low of $207.64 and a fifty-two week high of $271.64. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.78 and a quick ratio of 0.96. The stock's 50-day moving average is $230.04 and its two-hundred day moving average is $240.41.

Ferguson (NYSE:FERG - Get Free Report) last posted its quarterly 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 business had revenue of $7.47 billion during the quarter. Ferguson had a net margin of 6.98% and a return on equity of 38.81%. Ferguson's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same period last year, the company earned $2.50 earnings per share. As a group, equities research analysts forecast that Ferguson plc will post 11.27 earnings per share for the current fiscal year.

Ferguson Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Friday, May 15th were paid a $0.89 dividend. The ex-dividend date of this dividend was Friday, May 15th. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.6%. Ferguson's dividend payout ratio is 41.40%.

Ferguson declared that its board has authorized a share repurchase plan on Tuesday, May 5th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 3.9% of its stock through open market purchases. Stock buyback plans are often a sign that the company's management believes its shares are undervalued.

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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