Handelsbanken Fonder AB Trims Holdings in Ferguson plc $FERG

Key Points

• Handelsbanken Fonder AB reduced its stake in Ferguson plc by 11.8% in the fourth quarter, selling 12,042 shares and ending with 90,326 shares valued at about $20.1 million.
• Ferguson reported better-than-expected quarterly earnings, posting $2.28 EPS versus $2.14 expected, while revenue rose 3.6% year over year to $7.47 billion.
• The company authorized a $2 billion stock buyback and also declared a quarterly dividend of $0.89 per share, implying an annualized yield of about 1.6%.

Handelsbanken Fonder AB trimmed its position in Ferguson plc (NYSE:FERG - Free Report) by 11.8% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 90,326 shares of the company's stock after selling 12,042 shares during the period. Handelsbanken Fonder AB's holdings in Ferguson were worth $20,109,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in FERG. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings 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 valued at $2,445,000 after purchasing an additional 2,940 shares in the last quarter. Caxton Associates LLP purchased a new stake in Ferguson in the 1st quarter valued at about $310,000. Focus Partners Wealth grew its holdings in Ferguson by 22.7% in the 1st quarter. Focus Partners Wealth now owns 3,140 shares of the company's stock valued at $503,000 after buying an additional 581 shares during the period. Sivia Capital Partners LLC purchased a new stake in Ferguson in the 2nd quarter valued at about $257,000. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in Ferguson by 7.5% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company's stock valued at $150,000 after buying an additional 48 shares during the period. 81.98% of the stock is currently owned by hedge funds and other institutional investors.

Ferguson Stock Up 1.6%

Shares of NYSE:FERG opened at $225.04 on Thursday. Ferguson plc has a 1 year low of $176.26 and a 1 year high of $271.64. The stock has a market capitalization of $43.64 billion, a P/E ratio of 26.17, a PEG ratio of 1.57 and a beta of 1.23. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.01 and a current ratio of 1.88. The stock has a 50-day simple moving average of $240.37 and a 200-day simple moving average of $243.12.

Ferguson (NYSE:FERG - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, beating the consensus estimate of $2.14 by $0.14. Ferguson had a return on equity of 38.92% and a net margin of 6.98%.The company had revenue of $7.47 billion for the quarter. During the same period last year, the business earned $2.50 earnings per share. The company's revenue for the quarter was up 3.6% compared to the same quarter last year. Equities analysts forecast that Ferguson plc will post 11.25 earnings per share for the current year.

Ferguson announced that its Board of Directors has initiated a stock buyback plan on Tuesday, May 5th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to reacquire up to 3.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's leadership believes its shares are 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 issued a dividend of $0.89 per share. This represents a $3.56 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Friday, May 15th. Ferguson's dividend payout ratio (DPR) is presently 41.40%.

Wall Street Analyst Weigh In

FERG has been the subject of several recent analyst reports. Barclays lifted their price target on Ferguson from $295.00 to $297.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Weiss Ratings cut Ferguson from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 6th. Jefferies Financial Group restated a "buy" rating and issued a $300.00 price target on shares of Ferguson in a report on Tuesday, February 24th. Wells Fargo & Company lifted their price target on Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Finally, Oppenheimer lifted their price target on Ferguson from $255.00 to $280.00 and gave the company an "outperform" rating in a report on Wednesday, February 25th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, Ferguson currently has an average rating of "Moderate Buy" and an average price target 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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