Ferguson (NYSE:FERG) Hits New 12-Month Low - What's Next?

Key Points

• Ferguson shares fell to a new 52-week low, trading as low as $213.67, below both their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $285.57, while the company recently exceeded quarterly earnings estimates with $3.39 in EPS on $8.75 billion in revenue.
• Ferguson declared a quarterly dividend of $0.89 per share, equivalent to a 1.7% annual yield; institutional investors hold nearly 82% of the company’s stock.

Ferguson plc (NYSE:FERG - Get Free Report) shares hit a new 52-week low on Wednesday . The company traded as low as $213.67 and last traded at $214.3730, with a volume of 876666 shares trading hands. The stock had previously closed at $215.11.

Wall Street Analysts Forecast Growth

FERG has been the topic of a number of research reports. Royal Bank Of Canada raised their price target on Ferguson from $281.00 to $290.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 11th. Robert W. Baird increased their target price on Ferguson from $285.00 to $288.00 and gave the company an "outperform" rating in a report on Tuesday, August 11th. Wolfe Research began coverage on Ferguson in a research report on Tuesday. They issued a "peer perform" rating on the stock. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $261.00 price target on shares of Ferguson in a research note on Tuesday, August 18th. Finally, Barclays upped their price target on shares of Ferguson from $297.00 to $313.00 and gave the company an "overweight" rating in a research report on Tuesday, August 11th. Two research analysts have 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, the company currently has a consensus rating of "Moderate Buy" and an average price target of $285.57.

Ferguson Price Performance

The company has a current ratio of 1.73, a quick ratio of 0.93 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $41.55 billion, a PE ratio of 25.24, a price-to-earnings-growth ratio of 1.54 and a beta of 1.13. The firm has a 50 day moving average price of $234.40 and a 200 day moving average price of $236.34.

Ferguson (NYSE:FERG - Get Free Report) last released its earnings results on Monday, August 10th. The company reported $3.39 earnings per share for the quarter, beating 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. Research analysts anticipate that Ferguson plc will post 11.42 earnings per share for the current year.

Ferguson Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Friday, August 21st will be given a dividend of $0.89 per share. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, August 21st. Ferguson's payout ratio is presently 41.83%.

Insider Activity

In related news, insider Jake Schlicher sold 5,177 shares of the business's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $230.92, for a total transaction of $1,195,472.84. Following the completion of the transaction, the insider directly owned 9,490 shares in the company, valued at approximately $2,191,430.80. The trade was a 35.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.15% of the company's stock.

Hedge Funds Weigh In On Ferguson

Large investors have recently added to or reduced their stakes in the company. Jupiter Topco LLC bought a new stake in Ferguson in the second quarter worth $1,789,368,000. Norges Bank bought a new position in Ferguson during the fourth quarter valued at $498,005,000. Raiffeisen Bank International AG grew its stake 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 worth $116,382,000 after buying an additional 522,610 shares in the last quarter. Janus Henderson Group PLC grew its stake in shares of Ferguson by 7.8% in the 4th quarter. Janus Henderson Group PLC now owns 5,981,791 shares of the company's stock worth $1,331,621,000 after buying an additional 434,650 shares in the last quarter. Finally, Clearbridge Investments LLC increased its holdings in shares of Ferguson by 221.5% in the 4th quarter. Clearbridge Investments LLC now owns 554,575 shares of the company's stock worth $123,465,000 after buying an additional 382,080 shares during the last quarter. Hedge funds and other institutional investors own 81.98% of the company's stock.

Ferguson Company Profile

Ferguson plc NYSE: FERG is a value-added distributor of plumbing and heating products, water and wastewater solutions, fire protection equipment, HVAC supplies, and related products. The company primarily serves professional contractors and other trade customers, helping them source products, obtain technical support, and manage projects through its distribution network and digital platforms.

Ferguson operates mainly in North America, with businesses serving residential and commercial construction, infrastructure, facilities maintenance, and industrial markets in the United States and Canada.

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