WCM Investment Management LLC Sells 57,678 Shares of Ferguson plc $FERG

Key Points

• WCM Investment Management trimmed its Ferguson plc stake by 1.3% in the first quarter, selling 57,678 shares but still holding 4.35 million shares worth about $972.5 million.
• Ferguson’s latest results beat expectations, with quarterly EPS of $2.28 topping estimates and revenue rising 3.6% year over year to $7.47 billion.
• The company also approved a $2 billion share repurchase program and maintains a quarterly dividend of $0.89 per share, while analysts currently rate the stock a “Moderate Buy” with an average target price of $277.21.

WCM Investment Management LLC lowered its stake in Ferguson plc (NYSE:FERG - Free Report) by 1.3% during the first quarter, according to the company in its most recent filing with the SEC. The fund owned 4,348,417 shares of the company's stock after selling 57,678 shares during the period. Ferguson makes up 2.2% of WCM Investment Management LLC's portfolio, making the stock its 17th largest holding. WCM Investment Management LLC owned 2.24% of Ferguson worth $972,523,000 as of its most recent filing with the SEC.

Several other large investors have also recently bought and sold shares of FERG. Wellington Management Group LLP grew its position in shares of Ferguson by 150.8% in the fourth quarter. Wellington Management Group LLP now owns 9,366,465 shares of the company's stock valued at $2,085,256,000 after purchasing an additional 5,631,554 shares during the last quarter. Norges Bank acquired a new stake in Ferguson during the 4th quarter worth approximately $498,005,000. Durable Capital Partners LP acquired a new stake in Ferguson during the 3rd quarter worth approximately $244,561,000. Qube Research & Technologies Ltd boosted its stake in Ferguson by 588.1% in the 3rd quarter. Qube Research & Technologies Ltd now owns 1,087,523 shares of the company's stock valued at $244,236,000 after purchasing an additional 929,475 shares during the period. Finally, Voloridge Investment Management LLC boosted its stake in Ferguson by 502.8% in the 3rd quarter. Voloridge Investment Management LLC now owns 765,725 shares of the company's stock valued at $171,967,000 after purchasing an additional 638,692 shares during the period. 81.98% of the stock is owned by institutional investors.

Ferguson Price Performance

Shares of NYSE FERG opened at $231.39 on Monday. The stock has a market capitalization of $44.88 billion, a PE ratio of 26.91, a P/E/G ratio of 1.64 and a beta of 1.13. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.78 and a quick ratio of 0.96. The business has a fifty day moving average price of $230.34 and a two-hundred day moving average price of $240.39. Ferguson plc has a fifty-two week low of $207.64 and a fifty-two week high of $271.64.

Ferguson (NYSE:FERG - Get Free Report) last released its 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. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.The company had revenue of $7.47 billion for the quarter. During the same period last year, the company posted $2.50 earnings per share. The business's revenue for the quarter was up 3.6% compared to the same quarter last year. As a group, equities analysts predict that Ferguson plc will post 11.27 earnings per share for the current fiscal year.

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 Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Friday, May 15th were given a dividend of $0.89 per share. The ex-dividend date of this dividend was Friday, May 15th. This represents a $3.56 annualized dividend and a yield of 1.5%. Ferguson's dividend payout ratio is currently 41.40%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on FERG shares. Wells Fargo & Company increased their price objective on Ferguson from $260.00 to $285.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. Barclays boosted their target price on shares of Ferguson from $295.00 to $297.00 and gave the company an "overweight" rating in a research report on Friday, May 8th. Royal Bank Of Canada raised their price target on shares of Ferguson from $271.00 to $281.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 6th. Zelman & Associates upgraded shares of Ferguson from a "hold" rating to an "outperform" rating and set a $285.00 price objective for the company in a research note on Friday. Finally, Weiss Ratings raised shares of Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $277.21.

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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