Ferguson (NYSE:FERG) Raised to Outperform at Zelman & Associates

Ferguson (NYSE:FERG) was upgraded by equities researchers at Zelman & Associates from a “neutral” rating to an “outperform” rating in a report issued on Friday,Benzinga reports. The brokerage presently has a $285.00 price target on the stock. Zelman & Associates’ price target points to a potential upside of 21.48% from the stock’s current price.

Several other research firms have also issued reports on FERG. Barclays lifted their price target on shares of Ferguson from $295.00 to $297.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Wells Fargo & Company raised their price objective on Ferguson from $260.00 to $285.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. The Goldman Sachs Group downgraded Ferguson from a “buy” rating to a “neutral” rating and reduced their target price for the company from $315.00 to $265.00 in a report on Monday, July 6th. Royal Bank Of Canada increased their price target on Ferguson from $271.00 to $281.00 and gave the company an “outperform” rating in a research report on Wednesday, May 6th. Finally, Citigroup reissued a “neutral” rating on shares of Ferguson in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $277.21.

Ferguson Price Performance

Shares of FERG stock traded up $0.51 during midday trading on Friday, reaching $234.60. 196,021 shares of the company were exchanged, compared to its average volume of 1,376,526. The company’s 50 day moving average price is $230.54 and its two-hundred day moving average price is $240.36. The company has a market cap of $45.50 billion, a P/E ratio of 27.29, a PEG ratio of 1.63 and a beta of 1.13. Ferguson has a 12 month low of $207.64 and a 12 month high of $271.64. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.96 and a current ratio of 1.78.

Ferguson (NYSE:FERG) last announced its earnings results on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, topping the consensus estimate of $2.14 by $0.14. The firm had revenue of $7.47 billion for the quarter. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.Ferguson’s revenue for the quarter was up 3.6% on a year-over-year basis. During the same period in the previous year, the firm earned $2.50 EPS. On average, sell-side analysts expect that Ferguson will post 11.27 earnings per share for the current year.

Ferguson announced that its Board of Directors has initiated a share buyback program on Tuesday, May 5th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the company to repurchase up to 3.9% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Ferguson

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB boosted its holdings in shares of Ferguson by 6.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 96,068 shares of the company’s stock worth $22,800,000 after buying an additional 5,936 shares during the period. HF Advisory Group LLC raised its holdings in Ferguson by 1.6% in the 2nd quarter. HF Advisory Group LLC now owns 5,000 shares of the company’s stock worth $1,187,000 after acquiring an additional 77 shares during the period. Chesley Taft & Associates LLC lifted its position in Ferguson by 3.9% during the 2nd quarter. Chesley Taft & Associates LLC now owns 6,992 shares of the company’s stock worth $1,659,000 after acquiring an additional 260 shares during the last quarter. PensionDanmark Pensionsforsikringsaktieselskab lifted its position in Ferguson by 3.5% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 37,406 shares of the company’s stock worth $8,878,000 after acquiring an additional 1,249 shares during the last quarter. Finally, GAMMA Investing LLC boosted its holdings in Ferguson by 39.1% during the second quarter. GAMMA Investing LLC now owns 6,378 shares of the company’s stock valued at $1,514,000 after acquiring an additional 1,793 shares during the period. Institutional investors and hedge funds own 81.98% of the company’s stock.

About Ferguson

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.