Vanguard Group Inc. Raises Holdings in Ferguson plc (NASDAQ:FERG)

Key Points

• Vanguard Group Inc. increased its stake in Ferguson plc by 4.4%, now owning approximately 9.59% of the company, valued at $3.07 billion.
• The company reported earnings per share of $2.50, exceeding estimates, and expects to post 9.4 EPS for the current year.
• Ferguson also declared a quarterly dividend of $0.83 per share, with a current yield of 1.5% and a payout ratio of 41.40%.

Vanguard Group Inc. lifted its position in shares of Ferguson plc (NASDAQ:FERG - Free Report) by 4.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 19,168,743 shares of the company's stock after acquiring an additional 806,718 shares during the quarter. Vanguard Group Inc. owned 9.59% of Ferguson worth $3,071,408,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Barclays PLC lifted its stake in Ferguson by 208.8% in the 4th quarter. Barclays PLC now owns 2,678,880 shares of the company's stock valued at $464,973,000 after buying an additional 1,811,287 shares in the last quarter. Bank of New York Mellon Corp increased its holdings in Ferguson by 24.5% in the 1st quarter. Bank of New York Mellon Corp now owns 7,660,299 shares of the company's stock valued at $1,227,410,000 after purchasing an additional 1,506,024 shares during the last quarter. Vontobel Holding Ltd. increased its holdings in Ferguson by 94.6% in the 1st quarter. Vontobel Holding Ltd. now owns 2,402,527 shares of the company's stock valued at $384,957,000 after purchasing an additional 1,167,751 shares during the last quarter. Baupost Group LLC MA acquired a new stake in Ferguson in the 4th quarter valued at approximately $196,481,000. Finally, Massachusetts Financial Services Co. MA grew its stake in shares of Ferguson by 1,036.1% in the first quarter. Massachusetts Financial Services Co. MA now owns 1,020,522 shares of the company's stock worth $163,518,000 after acquiring an additional 930,696 shares in the last quarter. 81.98% of the stock is owned by hedge funds and other institutional investors.

Ferguson Trading Down 0.5%

FERG stock traded down $1.23 during midday trading on Friday, hitting $223.53. The stock had a trading volume of 855,301 shares, compared to its average volume of 1,739,130. The firm has a market cap of $44.08 billion, a PE ratio of 26.83, a price-to-earnings-growth ratio of 1.69 and a beta of 1.16. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.68 and a quick ratio of 0.91. Ferguson plc has a 12-month low of $146.00 and a 12-month high of $228.80. The company's 50-day moving average price is $218.91 and its 200 day moving average price is $187.93.

Ferguson (NASDAQ:FERG - Get Free Report) last posted its quarterly earnings results on Tuesday, June 3rd. The company reported $2.50 earnings per share for the quarter, topping analysts' consensus estimates of $2.06 by $0.44. Ferguson had a net margin of 5.68% and a return on equity of 34.63%. The business's revenue was up 4.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.32 EPS. On average, equities research analysts predict that Ferguson plc will post 9.4 earnings per share for the current fiscal year.

Ferguson Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 6th. Shareholders of record on Friday, June 20th were paid a dividend of $0.83 per share. The ex-dividend date of this dividend was Friday, June 20th. This represents a $3.32 dividend on an annualized basis and a yield of 1.5%. Ferguson's dividend payout ratio (DPR) is currently 41.40%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the stock. Barclays lifted their price objective on shares of Ferguson from $190.00 to $247.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 4th. The Goldman Sachs Group started coverage on shares of Ferguson in a research note on Wednesday, June 18th. They issued a "buy" rating and a $280.00 price objective on the stock. Truist Financial restated a "buy" rating and issued a $230.00 price objective on shares of Ferguson in a research note on Wednesday, June 4th. Morgan Stanley restated an "overweight" rating and issued a $220.00 price objective (up from $195.00) on shares of Ferguson in a research note on Monday, June 9th. Finally, Oppenheimer boosted their price target on shares of Ferguson from $189.00 to $235.00 and gave the stock an "outperform" rating in a research note on Wednesday, June 4th. Six investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $220.64.

Ferguson Profile

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets. The company also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, fabrication, and others, as well as heating, ventilation, and air conditioning products under the Ferguson brand name.