Mawer Investment Management Ltd. Has $188.55 Million Stake in Ferguson plc $FERG

Key Points

• Mawer Investment Management cut its Ferguson stake by 7.1% in the fourth quarter but still held 846,921 shares worth about $188.6 million, making Ferguson its 28th-largest holding.
• Ferguson reported better-than-expected earnings for the latest quarter, with EPS of $2.28 versus estimates of $2.14, while revenue rose 3.6% year over year to $7.47 billion.
• The company also boosted shareholder returns by announcing a $2 billion share repurchase program and a quarterly dividend of $0.89 per share, equal to an annualized yield of about 1.6%.

Mawer Investment Management Ltd. decreased its holdings in shares of Ferguson plc (NYSE:FERG - Free Report) by 7.1% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 846,921 shares of the company's stock after selling 64,456 shares during the quarter. Ferguson makes up about 1.1% of Mawer Investment Management Ltd.'s investment portfolio, making the stock its 28th biggest holding. Mawer Investment Management Ltd. owned 0.43% of Ferguson worth $188,550,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. Ellevest Inc. lifted its stake in Ferguson by 14.5% in the fourth quarter. Ellevest Inc. now owns 1,354 shares of the company's stock valued at $301,000 after acquiring an additional 171 shares during the last quarter. Nomura Asset Management Co. Ltd. lifted its stake in Ferguson by 2.5% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 70,020 shares of the company's stock valued at $15,589,000 after acquiring an additional 1,734 shares during the last quarter. AdvisorShares Investments LLC lifted its stake in Ferguson by 40.5% in the fourth quarter. AdvisorShares Investments LLC now owns 527 shares of the company's stock valued at $117,000 after acquiring an additional 152 shares during the last quarter. Forsta AP Fonden lifted its stake in Ferguson by 63.8% in the fourth quarter. Forsta AP Fonden now owns 71,900 shares of the company's stock valued at $16,007,000 after acquiring an additional 28,000 shares during the last quarter. Finally, Norges Bank acquired a new stake in Ferguson in the fourth quarter valued at $498,005,000. Institutional investors and hedge funds own 81.98% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on FERG. UBS Group increased their price target on shares of Ferguson from $220.00 to $252.00 and gave the company a "neutral" rating in a research note on Wednesday, February 25th. Wells Fargo & Company increased their price target on shares of Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Oppenheimer increased their price target on shares of Ferguson from $255.00 to $280.00 and gave the company an "outperform" rating in a research note on Wednesday, February 25th. Jefferies Financial Group reiterated a "buy" rating and issued a $300.00 price target on shares of Ferguson in a research note on Tuesday, February 24th. Finally, Truist Financial increased their price target on shares of Ferguson from $260.00 to $300.00 and gave the company a "buy" rating in a research note on Wednesday, February 25th. Two research 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, the company currently has a consensus rating of "Moderate Buy" and an average price target of $269.73.

Ferguson Stock Down 0.7%

Shares of FERG opened at $224.42 on Tuesday. Ferguson plc has a 12 month low of $177.75 and a 12 month high of $271.64. The firm's 50 day moving average is $240.66 and its 200-day moving average is $241.79. The stock has a market capitalization of $43.52 billion, a PE ratio of 26.09, 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 0.96 and a debt-to-equity ratio of 0.68.

Ferguson (NYSE:FERG - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $2.28 EPS 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 company had revenue of $7.47 billion for the quarter. During the same period in the prior year, the business posted $2.50 earnings per share. The firm's revenue for the quarter was up 3.6% compared to the same quarter last year. Equities research analysts forecast that Ferguson plc will post 11.26 EPS for the current year.

Ferguson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Friday, May 15th will be given a $0.89 dividend. The ex-dividend date is Friday, May 15th. This represents a $3.56 annualized dividend and a dividend yield of 1.6%. Ferguson's payout ratio is presently 41.40%.

Ferguson declared that its Board of Directors has approved a stock repurchase plan on Tuesday, May 5th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to purchase up to 3.9% of its stock through open market purchases. Stock repurchase 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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