Forsta AP Fonden Acquires 28,000 Shares of Ferguson plc $FERG

Key Points

• Forsta AP Fonden increased its Ferguson stake by 63.8% in the fourth quarter, buying 28,000 additional shares and bringing its total to 71,900 shares valued at about $16.0 million.
• Ferguson reported better-than-expected quarterly earnings of $2.28 per share on revenue of $7.47 billion, with revenue up 3.6% year over year. The company also announced a $2 billion share repurchase program.
• The company declared a quarterly dividend of $0.89 per share, while analysts remain generally positive with a consensus rating of Moderate Buy and an average price target of $269.73.

Forsta AP Fonden lifted its holdings in Ferguson plc (NYSE:FERG - Free Report) by 63.8% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 71,900 shares of the company's stock after purchasing an additional 28,000 shares during the quarter. Forsta AP Fonden's holdings in Ferguson were worth $16,007,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Norges Bank purchased a new stake in shares of Ferguson during the fourth quarter valued at $498,005,000. Durable Capital Partners LP purchased a new position in Ferguson in the 3rd quarter worth about $244,561,000. Qube Research & Technologies Ltd lifted its stake in Ferguson by 588.1% during the 3rd quarter. Qube Research & Technologies Ltd now owns 1,087,523 shares of the company's stock valued at $244,236,000 after acquiring an additional 929,475 shares during the period. Wellington Management Group LLP boosted its holdings in shares of Ferguson by 22.4% during the 3rd quarter. Wellington Management Group LLP now owns 3,734,911 shares of the company's stock valued at $838,786,000 after acquiring an additional 682,666 shares during the last quarter. Finally, 59 North Capital Management LP boosted its holdings in shares of Ferguson by 114.7% during the 3rd quarter. 59 North Capital Management LP now owns 1,255,137 shares of the company's stock valued at $281,879,000 after acquiring an additional 670,473 shares during the last quarter. 81.98% of the stock is owned by institutional investors.

Ferguson Stock Down 0.3%

Shares of FERG stock opened at $225.88 on Friday. Ferguson plc has a 12 month low of $177.75 and a 12 month high of $271.64. The stock has a market cap of $43.81 billion, a P/E ratio of 26.27, a P/E/G ratio of 1.60 and a beta of 1.23. The company has a current ratio of 1.78, a quick ratio of 1.01 and a debt-to-equity ratio of 0.68. The company has a 50 day simple moving average of $240.53 and a two-hundred day simple moving average of $242.07.

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

Ferguson announced that its Board of Directors has approved a share repurchase program 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 programs are usually an indication that the company's leadership believes its stock is undervalued.

Ferguson Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Friday, May 15th will be given 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 payout ratio is 41.40%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on FERG shares. Oppenheimer boosted their price objective on shares of Ferguson from $255.00 to $280.00 and gave the company an "outperform" rating in a report on Wednesday, February 25th. Barclays raised their target price on shares of Ferguson from $295.00 to $297.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $300.00 target price on shares of Ferguson in a research report on Tuesday, February 24th. Truist Financial increased their price target on Ferguson from $260.00 to $300.00 and gave the company a "buy" rating in a report on Wednesday, February 25th. Finally, UBS Group raised their price target on Ferguson from $220.00 to $252.00 and gave the stock a "neutral" rating in a research note on Wednesday, February 25th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Ferguson has an average rating of "Moderate Buy" and an average target price of $269.73.

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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