Wells Fargo & Company Issues Pessimistic Forecast for Ferguson (NYSE:FERG) Stock Price

Key Points

• Wells Fargo & Company lowered its price target for Ferguson from $285 to $260 but maintained an "overweight" rating, implying roughly a 4.72% upside from the current price.
• Ferguson missed quarterly EPS expectations, reporting $1.99 versus the $2.24 consensus, although revenue was up 3.6% year-over-year.
• Analysts hold a Moderate Buy consensus on FERG with an average target of $267.27, comprised of 2 Strong Buy, 10 Buy and 5 Hold ratings.

Ferguson (NYSE:FERG - Get Free Report) had its price objective lowered by stock analysts at Wells Fargo & Company from $285.00 to $260.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective indicates a potential upside of 4.72% from the company's current price.

Several other research analysts also recently commented on FERG. Weiss Ratings downgraded Ferguson from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, March 27th. Oppenheimer lifted their price objective on Ferguson from $255.00 to $280.00 and gave the company an "outperform" rating in a research report on Wednesday, February 25th. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Ferguson in a research report on Thursday, January 8th. Deutsche Bank Aktiengesellschaft lifted their price objective on Ferguson from $237.00 to $246.00 and gave the company a "hold" rating in a research report on Thursday, December 11th. Finally, Morgan Stanley reaffirmed an "overweight" rating on shares of Ferguson in a research report on Tuesday, January 6th. Two equities research analysts have rated the stock with a Strong Buy rating, ten 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 an average target price of $267.27.

Ferguson Price Performance

NYSE FERG traded up $12.36 during trading hours on Wednesday, reaching $248.28. 997,959 shares of the stock traded hands, compared to its average volume of 1,376,644. The stock has a 50 day simple moving average of $243.78 and a two-hundred day simple moving average of $240.36. Ferguson has a 1 year low of $146.00 and a 1 year high of $271.64. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.88 and a quick ratio of 1.01. The company has a market cap of $48.26 billion, a price-to-earnings ratio of 25.08, a price-to-earnings-growth ratio of 1.92 and a beta of 1.21.

Ferguson (NYSE:FERG - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The company reported $1.99 earnings per share for the quarter, missing analysts' consensus estimates of $2.24 by ($0.25). Ferguson had a net margin of 6.93% and a return on equity of 40.37%. During the same period in the previous year, the company posted $1.52 EPS. The firm's revenue for the quarter was up 3.6% compared to the same quarter last year.

Institutional Investors Weigh In On Ferguson

A number of hedge funds have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. raised its stake in Ferguson by 83.8% during the 4th quarter. Rockefeller Capital Management L.P. now owns 4,815 shares of the company's stock valued at $1,072,000 after buying an additional 2,196 shares during the last quarter. World Investment Advisors increased its stake in shares of Ferguson by 36.1% in the 4th quarter. World Investment Advisors now owns 1,583 shares of the company's stock worth $352,000 after purchasing an additional 420 shares in the last quarter. Larry Mathis Financial Planning LLC purchased a new stake in shares of Ferguson in the 4th quarter worth $272,000. Rehmann Capital Advisory Group increased its stake in shares of Ferguson by 8.1% in the 4th quarter. Rehmann Capital Advisory Group now owns 1,395 shares of the company's stock worth $311,000 after purchasing an additional 104 shares in the last quarter. Finally, Alpine Global Management LLC increased its stake in shares of Ferguson by 177.5% in the 4th quarter. Alpine Global Management LLC now owns 6,318 shares of the company's stock worth $1,407,000 after purchasing an additional 4,041 shares in the last quarter. 81.98% of the stock is currently owned by hedge funds and other institutional investors.

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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