Ferguson (NYSE:FERG) Shares Break Above 200-Day Moving Average - What's Next?

Key Points

• Ferguson shares rose above their 200-day moving average of $237.33, reaching $240.59 and last trading near $240.40.
• Analysts maintain a broadly positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $287.44.
• The company exceeded quarterly earnings expectations, reporting adjusted EPS of $3.39 versus $3.23 expected, while paying a quarterly dividend of $0.89 per share.

Ferguson plc (NYSE:FERG - Get Free Report)'s stock price passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $237.33 and traded as high as $240.59. Ferguson shares last traded at $240.3970, with a volume of 951,355 shares traded.

Wall Street Analyst Weigh In

Several brokerages have commented on FERG. DA Davidson lifted their price objective on shares of Ferguson from $278.00 to $284.00 and gave the company a "buy" rating in a research note on Wednesday, August 12th. Morgan Stanley boosted their target price on shares of Ferguson from $290.00 to $295.00 in a research note on Wednesday, August 19th. Wolfe Research assumed coverage on shares of Ferguson in a report on Tuesday, September 15th. They set a "peer perform" rating on the stock. Weiss Ratings restated a "hold (c+)" rating on shares of Ferguson in a research report on Tuesday, September 29th. Finally, Bank of America reduced their price target on Ferguson from $325.00 to $315.00 in a report on Tuesday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $287.44.

Ferguson Stock Performance

The company has a market cap of $46.51 billion, a PE ratio of 28.25, a PEG ratio of 1.66 and a beta of 1.14. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.93 and a current ratio of 1.73. The firm's 50 day moving average is $225.03 and its 200-day moving average is $237.33.

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, topping analysts' consensus estimates of $3.23 by $0.16. The business 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%. On average, research analysts anticipate that Ferguson plc will post 11.42 earnings per share for the current fiscal year.

Ferguson Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Friday, August 21st were paid a dividend of $0.89 per share. The ex-dividend date of this dividend was Friday, August 21st. This represents a $3.56 dividend on an annualized basis and a yield of 1.5%. Ferguson's payout ratio is 41.83%.

Insider Buying and Selling

In other news, CFO William Brundage sold 5,986 shares of the stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $218.74, for a total value of $1,309,377.64. Following the completion of the sale, the chief financial officer owned 54,908 shares of the company's stock, valued at $12,010,575.92. This represents a 9.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ian Graham sold 1,854 shares of the stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $218.74, for a total value of $405,543.96. Following the completion of the transaction, the insider owned 11,511 shares of the company's stock, valued at $2,517,916.14. The trade was a 13.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 38,808 shares of company stock worth $8,571,587 over the last ninety days. 0.15% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ferguson

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Saudi Central Bank lifted its holdings in shares of Ferguson by 88.5% in the 2nd quarter. Saudi Central Bank now owns 13,607 shares of the company's stock valued at $3,229,000 after purchasing an additional 6,389 shares during the last quarter. Munich Reinsurance Co Stock Corp in Munich boosted its stake in Ferguson by 2.5% during the 2nd quarter. Munich Reinsurance Co Stock Corp in Munich now owns 326,515 shares of the company's stock worth $77,509,000 after purchasing an additional 7,916 shares during the period. WINTON GROUP Ltd purchased a new position in Ferguson during the 2nd quarter worth $2,183,000. State Street Corp grew its position in Ferguson by 1.1% during the 2nd quarter. State Street Corp now owns 4,619,995 shares of the company's stock worth $1,100,474,000 after purchasing an additional 48,544 shares during the last quarter. Finally, Jones Financial Companies Lllp grew its position in Ferguson by 13.2% during the 2nd quarter. Jones Financial Companies Lllp now owns 96,108 shares of the company's stock worth $22,932,000 after purchasing an additional 11,196 shares during the last quarter. 81.98% of the stock is owned by hedge funds and other institutional investors.

About Ferguson

Ferguson plc NYSE: FERG is a value-added distributor of plumbing, heating, ventilation and air conditioning (HVAC), waterworks, fire protection and other building and industrial products. The company serves professional contractors, municipalities, commercial and industrial businesses, and other customers through a network of branches, distribution centers, showrooms and digital platforms.

Its product offering includes pipes, valves, fittings, plumbing fixtures, water and wastewater infrastructure products, HVAC equipment, fire protection systems, industrial supplies and related tools and services.

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