Truist Financial Corp Cuts Stock Holdings in Ferguson plc $FERG

Key Points

• Truist reduced its stake in Ferguson by 23.1%, selling 59,632 shares and ending the quarter with 198,411 shares worth $44.17 million, while institutional investors own about 81.98% of the stock.
• Ferguson beat Q1 estimates with $2.28 EPS vs. $2.14 and $7.47B revenue, but EPS declined year‑over‑year and the earnings call highlighted a "challenging market," with the stock trading down roughly 3.1% to $252.81.
• The board approved a $2.0 billion share buyback (up to ~3.9% of shares) and declared a $0.89 quarterly dividend ($3.56 annual, 1.4% yield); analysts' consensus is a "Moderate Buy" with an average target of $267.27.

Truist Financial Corp reduced its position in shares of Ferguson plc (NYSE:FERG - Free Report) by 23.1% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 198,411 shares of the company's stock after selling 59,632 shares during the period. Truist Financial Corp owned 0.10% of Ferguson worth $44,172,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Ferguson by 23.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,262 shares of the company's stock worth $2,445,000 after purchasing an additional 2,940 shares during the last quarter. Caxton Associates LLP acquired a new position in shares of Ferguson during the 1st quarter worth approximately $310,000. Focus Partners Wealth boosted its holdings in shares of Ferguson by 22.7% during the 1st quarter. Focus Partners Wealth now owns 3,140 shares of the company's stock worth $503,000 after purchasing an additional 581 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Ferguson during the 2nd quarter worth approximately $257,000. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Ferguson by 7.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company's stock worth $150,000 after purchasing an additional 48 shares during the last quarter. 81.98% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Weiss Ratings upgraded Ferguson from a "hold (c+)" rating to a "buy (b-)" rating in a report on Monday, April 20th. Sanford C. Bernstein restated an "outperform" rating on shares of Ferguson in a report on Thursday, January 8th. Wells Fargo & Company lowered their target price on Ferguson from $285.00 to $260.00 and set an "overweight" rating on the stock in a report on Wednesday, April 8th. 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. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $300.00 price target on shares of Ferguson in a research note on Tuesday, February 24th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, Ferguson currently has an average rating of "Moderate Buy" and an average target price of $267.27.

Key Stories Impacting Ferguson

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: Quarterly results: Ferguson beat consensus EPS ($2.28 vs. $2.14) and delivered revenue of $7.47B, with management highlighting strength in non‑residential/capital projects — a sign the company can win large contracts and sustain margin mix benefits. Ferguson Reports First Quarter
• Positive Sentiment: Strategic partnership: Ferguson formed an alliance with Contractor Commerce to improve digital/e‑commerce capabilities for contractor customers — could help drive share gains and digital sales growth over time. Contractor Commerce Alliance
• Positive Sentiment: Analyst sentiment: Brokerages give Ferguson an average "Moderate Buy" rating, indicating continued analyst support despite mixed quarter — a counterweight to near‑term selling. Analyst Rating
• Neutral Sentiment: SEC/Form filings: Ferguson filed a Form 8‑K related to its annual meeting and disclosed vesting of restricted stock units for directors/PDMRs — routine governance and compensation disclosures with no direct cash‑flow impact. Form 8-K
• Neutral Sentiment: PDMR shareholding disclosure: Restricted stock units vested for directors (disclosed in a notice) — standard compensation reporting rather than insider selling. PDMR Shareholding
• Negative Sentiment: Earnings-call tone & headline metrics: The earnings call transcript reiterates a "challenging market" backdrop, year‑over‑year EPS decline (from $2.50 to $2.28) and only modest revenue growth (3.6%), which likely prompted caution from investors despite the beat. Earnings Call Transcript
• Negative Sentiment: Potential headline noise: Local news stories referencing "Ferguson" (city-level votes rejecting tax abatements/data center proposals) and unrelated media about public figures named Ferguson are creating search/activity noise; these items are not company actions but can confuse sentiment in the short term. City Council Rejects Tax Abatement Data Center Rejection

Ferguson Trading Down 3.1%

FERG opened at $252.81 on Wednesday. Ferguson plc has a one year low of $166.04 and a one year high of $271.64. The stock has a market capitalization of $49.14 billion, a PE ratio of 25.54, a P/E/G ratio of 1.96 and a beta of 1.23. The business's 50 day moving average price is $243.88 and its 200 day moving average price is $243.90. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.01 and a current ratio of 1.88.

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 analysts' consensus estimates of $2.14 by $0.14. Ferguson had a return on equity of 40.37% and a net margin of 6.93%.The firm had revenue of $7.47 billion for the quarter. During the same quarter in the prior year, the company posted $2.50 earnings per share. The company's revenue was up 3.6% on a year-over-year basis. As a group, equities research analysts expect that Ferguson plc will post 11.2 EPS for the current year.

Ferguson declared that its board has approved a share repurchase plan on Tuesday, May 5th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 3.9% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's board believes its stock is undervalued.

Ferguson Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Investors of record on Friday, May 15th will be issued a $0.89 dividend. The ex-dividend date is Friday, May 15th. This represents a $3.56 dividend on an annualized basis and a yield of 1.4%. Ferguson's dividend payout ratio is currently 35.96%.

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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