Wellington Management Group LLP Trims Stock Position in Ferguson plc $FERG

Key Points

• Wellington Management reduced its Ferguson stake by 15.1% in the second quarter, selling 1.28 million shares and retaining 7.21 million shares valued at approximately $1.71 billion. Institutional investors collectively own 81.98% of Ferguson.
• Ferguson reported quarterly EPS of $3.39, beating estimates by $0.16, on revenue of $8.75 billion. The company also authorized a $2 billion share-repurchase program and announced a quarterly dividend of $0.89 per share, yielding about 1.6% annually.
• Despite shares trading down 2.0% at $228.52, analysts maintain a consensus “Moderate Buy” rating with an average price target of $285.93, implying potential upside from current levels.

Wellington Management Group LLP cut its holdings in Ferguson plc (NYSE:FERG - Free Report) by 15.1% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,209,558 shares of the company's stock after selling 1,278,763 shares during the quarter. Wellington Management Group LLP owned approximately 3.73% of Ferguson worth $1,711,044,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of FERG. Raiffeisen Bank International AG boosted its holdings in shares of Ferguson by 350,745.0% in the 4th quarter. Raiffeisen Bank International AG now owns 522,759 shares of the company's stock valued at $116,382,000 after buying an additional 522,610 shares during the period. Marsico Capital Management LLC acquired a new stake in Ferguson during the fourth quarter worth about $11,017,000. Lmcg Investments LLC acquired a new stake in Ferguson during the first quarter worth about $1,806,000. Jones Financial Companies Lllp lifted its holdings in Ferguson by 13.2% in the second quarter. Jones Financial Companies Lllp now owns 96,108 shares of the company's stock worth $22,932,000 after acquiring an additional 11,196 shares during the last quarter. Finally, Greenland Capital Management LP bought a new position in Ferguson in the second quarter worth about $1,481,000. 81.98% of the stock is owned by hedge funds and other institutional investors.

Ferguson Trading Down 2.0%

Ferguson stock opened at $228.52 on Friday. Ferguson plc has a 52-week low of $207.64 and a 52-week high of $271.64. The company has a quick ratio of 0.93, a current ratio of 1.73 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $44.21 billion, a price-to-earnings ratio of 26.85, a PEG ratio of 1.62 and a beta of 1.14. The firm has a 50-day moving average price of $236.93 and a two-hundred day moving average price of $239.63.

Ferguson (NYSE:FERG - Get Free Report) last announced its quarterly earnings results on Monday, August 10th. The company reported $3.39 EPS for the quarter, beating the consensus estimate of $3.23 by $0.16. The company had revenue of $8.75 billion for the quarter. Ferguson had a net margin of 6.82% and a return on equity of 37.24%. Sell-side analysts expect that Ferguson plc will post 11.42 earnings per share for the current year.

Ferguson announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, May 5th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to buy up to 3.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

Ferguson Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Friday, August 21st will be issued a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Friday, August 21st. Ferguson's dividend payout ratio is 41.83%.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on FERG. Sanford C. Bernstein upped their target price on Ferguson from $310.00 to $325.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. Robert W. Baird raised their price target on Ferguson from $285.00 to $288.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. Royal Bank Of Canada boosted their price objective on Ferguson from $281.00 to $290.00 and gave the company an "outperform" rating in a research report on Tuesday, August 11th. Oppenheimer upped their price objective on Ferguson from $280.00 to $288.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 11th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $261.00 target price on shares of Ferguson in a research report on Tuesday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Ferguson currently has a consensus rating of "Moderate Buy" and an average target price of $285.93.

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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