World Investment Advisors Has $2.03 Million Holdings in Ferguson plc $FERG

Key Points

• World Investment Advisors boosted its Ferguson stake by 450.1% in the first quarter, ending with 8,708 shares worth about $2.03 million.
• Ferguson reported better-than-expected earnings of $2.28 per share on $7.47 billion in revenue, while also announcing a $2 billion share buyback program and a quarterly dividend of $0.89 per share.
• Despite the positive fundamentals, the stock was down 2.6% in Tuesday trading, and analysts currently rate it Moderate Buy with a consensus price target of $276.61.

World Investment Advisors increased its holdings in shares of Ferguson plc (NYSE:FERG - Free Report) by 450.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 8,708 shares of the company's stock after acquiring an additional 7,125 shares during the quarter. World Investment Advisors' holdings in Ferguson were worth $2,031,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in the business. Wellington Management Group LLP grew its stake in Ferguson by 150.8% in the 4th quarter. Wellington Management Group LLP now owns 9,366,465 shares of the company's stock valued at $2,085,256,000 after buying an additional 5,631,554 shares during the last quarter. Norges Bank acquired a new position in Ferguson in the 4th quarter valued at $498,005,000. Durable Capital Partners LP bought a new stake in shares of Ferguson in the third quarter valued at about $244,561,000. Qube Research & Technologies Ltd increased its position in Ferguson by 588.1% during the third quarter. Qube Research & Technologies Ltd now owns 1,087,523 shares of the company's stock worth $244,236,000 after acquiring an additional 929,475 shares during the period. Finally, 59 North Capital Management LP grew its position in shares of Ferguson by 114.7% during the 3rd quarter. 59 North Capital Management LP now owns 1,255,137 shares of the company's stock worth $281,879,000 after purchasing an additional 670,473 shares in the last quarter. Institutional investors and hedge funds own 81.98% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on FERG shares. Weiss Ratings raised Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday. Wells Fargo & Company upped their price objective on shares of 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 lifted their price target on Ferguson from $271.00 to $281.00 and gave the company an "outperform" rating in a research note on Wednesday, May 6th. Finally, The Goldman Sachs Group cut Ferguson from a "buy" rating to a "neutral" rating and decreased their target price for the company from $315.00 to $265.00 in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, Ferguson presently has a consensus rating of "Moderate Buy" and a consensus price target of $276.61.

Ferguson Trading Down 2.6%

NYSE FERG traded down $6.00 on Tuesday, hitting $222.91. The company's stock had a trading volume of 463,959 shares, compared to its average volume of 1,382,070. The company has a quick ratio of 0.96, a current ratio of 1.78 and a debt-to-equity ratio of 0.68. Ferguson plc has a 1-year low of $207.64 and a 1-year high of $271.64. The firm has a market cap of $43.23 billion, a PE ratio of 25.82, a PEG ratio of 1.63 and a beta of 1.13. The company's 50-day moving average is $235.17 and its 200 day moving average is $240.34.

Ferguson (NYSE:FERG - Get Free Report) last announced 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 business had revenue of $7.47 billion during the quarter. During the same period in the prior year, the business earned $2.50 earnings per share. The firm's revenue for the quarter was up 3.6% on a year-over-year basis. As a group, analysts predict that Ferguson plc will post 11.26 earnings per share for the current fiscal year.

Ferguson announced that its board has authorized a stock buyback program on Tuesday, May 5th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the company to repurchase up to 3.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Ferguson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 8th. Shareholders of record on Friday, May 15th will be given a dividend of $0.89 per share. 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, May 15th. Ferguson's dividend payout ratio is currently 41.40%.

About Ferguson

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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