Ferguson (NYSE:FERG) Shares Gap Up After Earnings Beat

Key Points

• Ferguson beat quarterly earnings expectations, reporting EPS of $3.43 versus the $3.28 consensus and revenue of $9.03 billion. Shares jumped from a prior close of $233.70 to open at $251.68.
• The company declared a quarterly dividend of $0.89 per share, equivalent to $3.56 annualized and a 1.4% yield.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $287.44; 13 analysts rate the stock Buy or Strong Buy, while six rate it Hold.

Shares of Ferguson plc (NYSE:FERG - Get Free Report) gapped up before the market opened on Monday following a stronger than expected earnings report. The stock had previously closed at $233.70, but opened at $251.68. Ferguson shares last traded at $259.1410, with a volume of 468,454 shares trading hands.

The company reported $3.43 earnings per share for the quarter, beating analysts' consensus estimates of $3.28 by $0.15. The company had revenue of $9.03 billion during the quarter. Ferguson had a return on equity of 37.24% and a net margin of 6.82%.

Ferguson Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 8th. Investors of record on Friday, November 20th will be given a dividend of $0.89 per share. The ex-dividend date of this dividend is Friday, November 20th. This represents a $3.56 annualized dividend and a dividend yield of 1.4%. Ferguson's dividend payout ratio (DPR) is 41.83%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Morgan Stanley boosted their price objective on shares of Ferguson from $290.00 to $295.00 in a report on Wednesday, August 19th. Barclays increased their target price on Ferguson from $297.00 to $313.00 and gave the company an "overweight" rating in a research note on Tuesday, August 11th. Sanford C. Bernstein increased their target price on Ferguson from $310.00 to $325.00 and gave the company an "outperform" rating in a research note on Tuesday, August 11th. DA Davidson lifted their target price on Ferguson from $278.00 to $284.00 and gave the stock a "buy" rating in a report on Wednesday, August 12th. Finally, UBS Group boosted their price target on Ferguson from $252.00 to $256.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, Ferguson has a consensus rating of "Moderate Buy" and a consensus target price of $287.44.

Insider Buying and Selling at Ferguson

In other news, insider Ian T. Graham sold 1,097 shares of the business's stock in a transaction on Friday, October 16th. The shares were sold at an average price of $230.00, for a total transaction of $252,310.00. Following the completion of the sale, the insider owned 9,874 shares of the company's stock, valued at $2,271,020. The trade was a 10.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jake Schlicher sold 314 shares of the business's stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $224.50, for a total transaction of $70,493.00. Following the sale, the insider directly owned 8,621 shares of the company's stock, valued at approximately $1,935,414.50. The trade was a 3.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 38,808 shares of company stock valued at $8,571,587 in the last quarter. Insiders own 0.15% of the company's stock.

Hedge Funds Weigh In On Ferguson

Institutional investors have recently bought and sold shares of the stock. Wedbush Securities Inc. raised its stake in shares of Ferguson by 4.3% in the second quarter. Wedbush Securities Inc. now owns 1,197 shares of the company's stock valued at $284,000 after acquiring an additional 49 shares during the period. REAP Financial Group LLC lifted its holdings in shares of Ferguson by 9.8% in the 3rd quarter. REAP Financial Group LLC now owns 581 shares of the company's stock worth $129,000 after acquiring an additional 52 shares during the last quarter. L2 Asset Management LLC boosted its stake in shares of Ferguson by 5.2% during the 2nd quarter. L2 Asset Management LLC now owns 1,109 shares of the company's stock worth $263,000 after purchasing an additional 55 shares during the period. Cidel Asset Management Inc. boosted its stake in shares of Ferguson by 3.8% during the 2nd quarter. Cidel Asset Management Inc. now owns 1,541 shares of the company's stock worth $366,000 after purchasing an additional 56 shares during the period. Finally, Virtue Capital Management LLC grew its holdings in Ferguson by 4.6% during the 3rd quarter. Virtue Capital Management LLC now owns 1,324 shares of the company's stock valued at $295,000 after purchasing an additional 58 shares during the last quarter. 81.98% of the stock is owned by institutional investors.

Ferguson Price Performance

The company has a market capitalization of $50.53 billion, a P/E ratio of 30.63, a P/E/G ratio of 1.69 and a beta of 1.11. The firm's fifty day moving average is $225.41 and its 200 day moving average is $237.16. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.93 and a current ratio of 1.73.

About Ferguson

Ferguson plc is a distributor of plumbing, heating, ventilation and air conditioning (HVAC), waterworks, and fire protection products. It supplies contractors and other professional customers with products, services, and expertise for residential, commercial, industrial, and infrastructure projects.

The company serves customers primarily in the United States and Canada through branches, distribution centers, and digital channels. Its offerings include pipes, valves and fittings, plumbing fixtures, HVAC equipment, water and wastewater products, and fire protection systems.

Ferguson traces its history to Wolseley, a British company that entered the plumbing and heating distribution business in the 1950s.

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