Short Interest in Ferguson plc (NYSE:FERG) Increases By 78.9%

Key Points

• Ferguson’s short interest surged 78.9% to nearly 5.0 million shares as of August 14, representing about 2.6% of shares outstanding and 0.7 days of average trading volume.
• Analysts remain generally bullish, with a consensus “Moderate Buy” rating and an average price target of $285.93 after several firms raised their targets.
• The stock fell 2.0% to $228.52, despite Ferguson beating quarterly earnings expectations; the company also authorized a $2 billion buyback and announced a quarterly dividend of $0.89 per share.

Ferguson plc (NYSE:FERG - Get Free Report) was the target of a significant growth in short interest in the month of August. As of August 14th, there was short interest totaling 4,996,064 shares, a growth of 78.9% from the July 30th total of 2,792,984 shares. Based on an average daily trading volume, of 7,452,362 shares, the short-interest ratio is presently 0.7 days. Approximately 2.6% of the company's stock are short sold.

Analyst Ratings Changes

FERG has been the topic of a number of research analyst reports. Wells Fargo & Company upped their target price on Ferguson from $285.00 to $295.00 and gave the stock an "overweight" rating in a report on Tuesday, August 11th. Barclays lifted their price target on Ferguson from $297.00 to $313.00 and gave the company an "overweight" rating in a research report on Tuesday, August 11th. Oppenheimer upped their price target on Ferguson from $280.00 to $288.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 11th. Robert W. Baird increased their price objective on Ferguson from $285.00 to $288.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. Finally, Weiss Ratings raised Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $285.93.

Ferguson Stock Down 2.0%

Shares of FERG stock traded down $4.74 during trading hours on Friday, hitting $228.52. 1,000,722 shares of the company's stock traded hands, compared to its average volume of 4,434,699. The stock's fifty day simple moving average is $236.93 and its two-hundred day simple moving average is $239.47. Ferguson has a 12-month low of $207.64 and a 12-month high of $271.64. The stock has a market cap of $44.21 billion, a price-to-earnings ratio of 26.85, a PEG ratio of 1.59 and a beta of 1.14. The company has a quick ratio of 0.93, a current ratio of 1.73 and a debt-to-equity ratio of 0.72.

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

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

Ferguson Dividend Announcement

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

Hedge Funds Weigh In On Ferguson

Several large investors have recently modified their holdings of FERG. Giverny Capital Inc. grew its position in Ferguson by 1.8% during the 2nd quarter. Giverny Capital Inc. now owns 37,380 shares of the company's stock valued at $8,871,000 after purchasing an additional 652 shares during the last quarter. HighTower Advisors LLC increased its stake in Ferguson by 5.6% during the 2nd quarter. HighTower Advisors LLC now owns 23,554 shares of the company's stock valued at $5,590,000 after purchasing an additional 1,243 shares in the last quarter. Groupe la Francaise raised its holdings in Ferguson by 18.4% in the second quarter. Groupe la Francaise now owns 20,152 shares of the company's stock worth $4,783,000 after buying an additional 3,134 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Ferguson in the second quarter worth approximately $23,045,000. Finally, First Eagle Investment Management LLC lifted its stake in shares of Ferguson by 4.1% in the second quarter. First Eagle Investment Management LLC now owns 659,054 shares of the company's stock worth $156,413,000 after buying an additional 25,745 shares in the last quarter. Hedge funds and other institutional investors own 81.98% of the company's stock.

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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