Mediolanum International Funds Ltd Makes New $1.51 Million Investment in Ferguson plc $FERG

Key Points

• Mediolanum International Funds Ltd initiated a new position in Ferguson plc, buying 6,765 shares worth about $1.51 million in the first quarter.
• Ferguson continues to draw heavy institutional interest, with 81.98% of shares owned by institutions and hedge funds, while several major firms also increased their stakes recently.
• Analysts remain constructive on the stock: Ferguson has a Moderate Buy consensus rating with an average price target of $277.21, even as shares traded down about 1.2% to $226.28.

Mediolanum International Funds Ltd purchased a new position in Ferguson plc (NYSE:FERG - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 6,765 shares of the company's stock, valued at approximately $1,513,000.

A number of other large investors also recently modified their holdings of FERG. Vanguard Group Inc. grew its position in Ferguson by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 19,418,334 shares of the company's stock valued at $4,323,104,000 after buying an additional 102,850 shares in the last quarter. Wellington Management Group LLP raised its position in shares of Ferguson by 150.8% during the 4th quarter. Wellington Management Group LLP now owns 9,366,465 shares of the company's stock worth $2,085,256,000 after buying an additional 5,631,554 shares in the last quarter. Janus Henderson Group PLC raised its position in shares of Ferguson by 7.8% during the 4th quarter. Janus Henderson Group PLC now owns 5,981,791 shares of the company's stock worth $1,331,621,000 after buying an additional 434,650 shares in the last quarter. State Street Corp lifted its stake in shares of Ferguson by 1.8% in the 4th quarter. State Street Corp now owns 4,516,764 shares of the company's stock worth $1,005,567,000 after acquiring an additional 79,296 shares during the period. Finally, Franklin Resources Inc. lifted its stake in shares of Ferguson by 0.6% in the 4th quarter. Franklin Resources Inc. now owns 4,393,603 shares of the company's stock worth $977,959,000 after acquiring an additional 25,785 shares during the period. 81.98% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Royal Bank Of Canada raised their price objective on shares of Ferguson from $271.00 to $281.00 and gave the company an "outperform" rating in a research note on Wednesday, May 6th. Zelman & Associates upgraded Ferguson from a "hold" rating to an "outperform" rating and set a $285.00 target price for the company in a research report on Friday, July 17th. Barclays increased their price target on Ferguson from $295.00 to $297.00 and gave the company an "overweight" rating in a research note on Friday, May 8th. Wells Fargo & Company lifted their price target on Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings raised Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, Ferguson has an average rating of "Moderate Buy" and a consensus price target of $277.21.

Ferguson Stock Down 1.2%

FERG stock opened at $226.28 on Wednesday. Ferguson plc has a 12 month low of $207.64 and a 12 month high of $271.64. The firm has a market cap of $43.88 billion, a PE ratio of 26.31, a P/E/G ratio of 1.62 and a beta of 1.13. The firm has a 50 day simple moving average of $229.80 and a 200 day simple moving average of $240.44. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.78 and a quick ratio of 0.96.

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 the consensus estimate of $2.14 by $0.14. The firm had revenue of $7.47 billion for the quarter. Ferguson had a net margin of 6.98% and a return on equity of 38.81%. The company's quarterly revenue was up 3.6% compared to the same quarter last year. During the same quarter last year, the firm posted $2.50 EPS. Equities research analysts forecast that Ferguson plc will post 11.27 earnings per share for the current fiscal year.

Ferguson announced that its Board of Directors has approved a stock repurchase plan on Tuesday, May 5th that authorizes the company to buyback $2.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 3.9% of its shares through open market purchases. Shares buyback plans 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 was paid on Wednesday, July 8th. Investors of record on Friday, May 15th were issued a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Friday, May 15th. Ferguson's payout ratio is presently 41.40%.

Ferguson 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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