Schroder Investment Management Group Lowers Stake in Ferguson plc $FERG

Key Points

• Schroder Investment Management cut its Ferguson stake by 87.5% in Q3, selling 943,552 shares and retaining 134,268 shares (~0.07% of the company) valued at about $30.15 million.
• Other large institutions (Vanguard, Franklin, Egerton, etc.) added to positions, keeping institutional ownership high at 81.98%, while analysts have raised targets and the consensus rating is a Moderate Buy with an average price target near $268.93.
• Ferguson reported an earnings miss of $1.99 EPS vs. $2.24 expected despite 3.6% revenue growth, and announced a $0.89 quarterly dividend (annualized $3.56, ~1.5% yield), which may keep near-term pressure on the shares.

Schroder Investment Management Group cut its holdings in Ferguson plc (NYSE:FERG - Free Report) by 87.5% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 134,268 shares of the company's stock after selling 943,552 shares during the quarter. Schroder Investment Management Group owned about 0.07% of Ferguson worth $30,154,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also made changes to their positions in the company. Vanguard Group Inc. grew its holdings in shares of Ferguson by 0.9% during the second quarter. Vanguard Group Inc. now owns 19,341,871 shares of the company's stock worth $4,211,692,000 after buying an additional 173,128 shares during the last quarter. Franklin Resources Inc. raised its stake in Ferguson by 39.3% during the 2nd quarter. Franklin Resources Inc. now owns 4,255,661 shares of the company's stock valued at $926,830,000 after acquiring an additional 1,201,493 shares during the last quarter. Soroban Capital Partners LP raised its stake in Ferguson by 2.8% during the 2nd quarter. Soroban Capital Partners LP now owns 3,705,056 shares of the company's stock valued at $806,776,000 after acquiring an additional 100,559 shares during the last quarter. Egerton Capital UK LLP lifted its position in Ferguson by 16.4% during the 3rd quarter. Egerton Capital UK LLP now owns 2,600,224 shares of the company's stock worth $583,958,000 after acquiring an additional 366,898 shares during the period. Finally, Brown Advisory Inc. lifted its position in Ferguson by 0.4% during the 2nd quarter. Brown Advisory Inc. now owns 2,442,107 shares of the company's stock worth $531,769,000 after acquiring an additional 10,615 shares during the period. 81.98% of the stock is owned by hedge funds and other institutional investors.

Ferguson Trading Up 1.6%

Shares of FERG opened at $231.45 on Thursday. Ferguson plc has a twelve month low of $146.00 and a twelve month high of $271.64. The company has a current ratio of 1.88, a quick ratio of 1.01 and a debt-to-equity ratio of 0.68. The firm has a market capitalization of $45.02 billion, a P/E ratio of 23.38, a PEG ratio of 1.83 and a beta of 1.17. The firm's 50-day moving average is $248.96 and its two-hundred day moving average is $240.60.

Ferguson (NYSE:FERG - Get Free Report) last posted its quarterly earnings results on Tuesday, February 24th. The company reported $1.99 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.24 by ($0.25). Ferguson had a net margin of 6.93% and a return on equity of 40.37%. The business's revenue for the quarter was up 3.6% on a year-over-year basis. During the same quarter last year, the company earned $1.52 EPS.

Ferguson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Friday, March 6th will be issued a dividend of $0.89 per share. The ex-dividend date of this dividend is Friday, March 6th. This represents a $3.56 annualized dividend and a yield of 1.5%. Ferguson's payout ratio is currently 35.96%.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on FERG. Barclays boosted their target price on Ferguson from $278.00 to $295.00 and gave the company an "overweight" rating in a report on Wednesday, February 25th. Truist Financial increased their price target on Ferguson from $260.00 to $300.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. Wells Fargo & Company lifted their price objective on shares of Ferguson from $280.00 to $285.00 and gave the company an "overweight" rating in a research report on Wednesday, February 25th. Jefferies Financial Group restated a "buy" rating and set a $300.00 price objective on shares of Ferguson in a research report on Tuesday, February 24th. Finally, Oppenheimer raised their target price on shares of Ferguson from $255.00 to $280.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 25th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $268.93.

Key Ferguson News

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: Big drop in short interest — Short interest fell ~34% in late February to ~1.79M shares (0.9% of float), lowering the short-interest ratio to ~1.1 days. Reduced short exposure can remove downside selling pressure and limit squeeze risk.
• Positive Sentiment: Technical/analyst note flags oversold conditions and upward estimate revisions — A Zacks piece highlights that FERG lost ~13.6% in four weeks and is trading in oversold territory; the article also notes analysts have been revising earnings estimates higher, which could set up a technical bounce or trend reversal. Zacks: Trend Reversal May Be Around the Corner
• Neutral Sentiment: Rebecca Ferguson (actor) confirms Silo Season 3 release window — Entertainment coverage (MSN/Yahoo/IDropNews) around the actress Rebecca Ferguson and her Apple TV series does not relate to Ferguson plc’s business or financials. Rebecca Ferguson Confirms Silo Season 3 Release Date
• Neutral Sentiment: Other celebrity/press items mentioning “Ferguson” — Multiple celebrity stories (Sarah Ferguson / Priscilla Presley / media gossip) and a NYT piece about footballer Evan Ferguson are in the feed but are unrelated to Ferguson plc’s performance. Example: NYT soccer profile. NYT: Evan Ferguson & Kaoru Mitoma
• Negative Sentiment: Recent quarterly earnings miss remains a headwind — Ferguson reported $1.99 EPS for the quarter (missed consensus ~$2.24) despite modest revenue growth. That earnings shortfall and any guidance implications can keep pressure on the shares until upcoming results or clearer margin recovery.

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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