Ferguson (NYSE:FERG) Reaches New 12-Month Low - Here's What Happened

Key Points

• Ferguson shares hit a new 52-week low, falling to $212.13 before last trading at $215.94. The stock remains below its 50-day and 200-day moving averages.
• Despite the share-price weakness, analysts maintain a “Moderate Buy” consensus with an average price target of $285.57, well above recent trading levels.
• Ferguson exceeded quarterly earnings expectations with $3.39 in EPS versus $3.23 forecast and reported $8.75 billion in revenue. The company also declared a quarterly dividend of $0.89, representing a 1.6% annualized yield.

Ferguson plc (NYSE:FERG - Get Free Report) shares hit a new 52-week low on Tuesday . The stock traded as low as $212.13 and last traded at $215.94, with a volume of 1220225 shares. The stock had previously closed at $214.43.

Analyst Ratings Changes

Several research analysts recently commented on FERG shares. Royal Bank Of Canada increased their target price on shares of Ferguson from $281.00 to $290.00 and gave the stock an "outperform" rating in a report on Tuesday, August 11th. Robert W. Baird lifted their price target on shares of Ferguson from $285.00 to $288.00 and gave the company an "outperform" rating in a research note on Tuesday, August 11th. Wells Fargo & Company boosted their price target on shares of Ferguson from $285.00 to $295.00 and gave the stock an "overweight" rating in a research report on Tuesday, August 11th. Jefferies Financial Group set a $295.00 price objective on shares of Ferguson in a research note on Thursday, September 3rd. Finally, UBS Group lifted their target price on Ferguson from $252.00 to $256.00 and gave the company a "neutral" rating in a research report on Tuesday, August 11th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, Ferguson has an average rating of "Moderate Buy" and a consensus price target of $285.57.

Ferguson Trading Up 0.7%

The stock has a market cap of $41.77 billion, a price-to-earnings ratio of 25.37, a PEG ratio of 1.49 and a beta of 1.13. 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 business's 50 day simple moving average is $233.44 and its 200 day simple moving average is $235.13.

Ferguson (NYSE:FERG - Get Free Report) last released its quarterly earnings data 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 net margin of 6.82% and a return on equity of 37.24%. The company had revenue of $8.75 billion for the quarter. On average, research analysts expect that Ferguson plc will post 11.42 EPS for the current fiscal year.

Ferguson Announces Dividend

The firm 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 $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 (DPR) is presently 41.83%.

Insider Activity at Ferguson

In other news, insider Jake Schlicher sold 5,177 shares of Ferguson 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. Corporate insiders own 0.15% of the company's stock.

Hedge Funds Weigh In On Ferguson

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jupiter Topco LLC acquired a new position in Ferguson in the 2nd quarter valued at about $1,789,368,000. Janus Henderson Group PLC lifted its position in Ferguson by 2.1% during the first quarter. Janus Henderson Group PLC now owns 6,107,108 shares of the company's stock worth $1,424,075,000 after acquiring an additional 125,317 shares during the last quarter. Franklin Resources Inc. boosted its holdings in shares of Ferguson by 0.6% during the fourth quarter. Franklin Resources Inc. now owns 4,393,603 shares of the company's stock worth $977,959,000 after acquiring an additional 25,785 shares during the period. Pictet Asset Management Holding SA boosted its holdings in shares of Ferguson by 9.2% during the first quarter. Pictet Asset Management Holding SA now owns 2,868,181 shares of the company's stock worth $668,809,000 after acquiring an additional 240,666 shares during the period. Finally, Norges Bank acquired a new position in shares of Ferguson in the fourth quarter valued at approximately $498,005,000. 81.98% of the stock is owned by institutional investors.

About Ferguson

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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