Ferguson plc (NASDAQ:FERG) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Shares of Ferguson plc (NASDAQ:FERG) have earned a consensus recommendation of “Moderate Buy” from the nine research firms that are presently covering the company, Marketbeat reports. One analyst has rated the stock with a sell rating, two have issued a hold rating and six have issued a buy rating on the company. The average 12 month price objective among brokerages that have issued ratings on the stock in the last year is $231.57.

A number of brokerages have recently weighed in on FERG. Robert W. Baird boosted their price target on Ferguson from $222.00 to $225.00 and gave the stock an “outperform” rating in a research note on Wednesday. Jefferies Financial Group boosted their target price on shares of Ferguson from $238.00 to $250.00 and gave the stock a “buy” rating in a research report on Wednesday, July 17th. Royal Bank of Canada upped their price target on shares of Ferguson from $211.00 to $219.00 and gave the company an “outperform” rating in a research note on Wednesday. Citigroup boosted their price objective on shares of Ferguson from $203.00 to $221.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Barclays raised their target price on Ferguson from $229.00 to $245.00 and gave the stock an “overweight” rating in a research note on Wednesday.

Institutional Trading of Ferguson

A number of hedge funds have recently modified their holdings of the stock. Norges Bank purchased a new position in Ferguson during the fourth quarter valued at approximately $988,852,000. Bank of New York Mellon Corp increased its holdings in shares of Ferguson by 375.4% during the 2nd quarter. Bank of New York Mellon Corp now owns 6,289,864 shares of the company’s stock valued at $1,218,032,000 after purchasing an additional 4,966,821 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Ferguson by 589.0% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 1,619,637 shares of the company’s stock valued at $353,778,000 after purchasing an additional 1,384,570 shares during the period. Brown Advisory Inc. boosted its holdings in Ferguson by 44.9% during the fourth quarter. Brown Advisory Inc. now owns 2,371,704 shares of the company’s stock worth $457,905,000 after buying an additional 735,270 shares in the last quarter. Finally, Capital World Investors acquired a new stake in Ferguson during the first quarter valued at $104,723,000. Hedge funds and other institutional investors own 81.98% of the company’s stock.

Ferguson Price Performance

Shares of FERG opened at $205.52 on Thursday. The company has a 50 day moving average of $204.35 and a two-hundred day moving average of $206.95. The company has a quick ratio of 0.94, a current ratio of 1.68 and a debt-to-equity ratio of 0.64. Ferguson has a twelve month low of $147.62 and a twelve month high of $225.63. The company has a market cap of $41.50 billion, a price-to-earnings ratio of 22.46, a price-to-earnings-growth ratio of 6.13 and a beta of 1.21.

Ferguson (NASDAQ:FERG) last posted its quarterly earnings data on Tuesday, September 17th. The company reported $2.98 earnings per share for the quarter, topping analysts’ consensus estimates of $2.86 by $0.12. Ferguson had a return on equity of 36.89% and a net margin of 6.33%. The firm had revenue of $7.95 billion during the quarter, compared to analysts’ expectations of $8.01 billion. During the same quarter last year, the firm earned $2.77 EPS. The business’s quarterly revenue was up 1.4% on a year-over-year basis. As a group, analysts predict that Ferguson will post 9.63 earnings per share for the current fiscal year.

Ferguson Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 8th. Shareholders of record on Friday, September 27th will be issued a $0.79 dividend. This represents a $3.16 annualized dividend and a yield of 1.54%. The ex-dividend date is Friday, September 27th. Ferguson’s payout ratio is 34.54%.

Ferguson declared that its board has authorized a share buyback plan on Tuesday, June 4th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to buy up to 2.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

About Ferguson

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets. The company also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, fabrication, and others, as well as heating, ventilation, and air conditioning products under the Ferguson brand name.