Convergence Investment Partners LLC Invests $1.28 Million in Ferguson plc $FERG

Convergence Investment Partners LLC acquired a new position in shares of Ferguson plc (NYSE:FERG) in the 4th quarter, Holdings Channel reports. The fund acquired 5,750 shares of the company’s stock, valued at approximately $1,280,000.

Several other institutional investors and hedge funds also recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Ferguson by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 19,418,334 shares of the company’s stock worth $4,323,104,000 after buying an additional 102,850 shares during the period. State Street Corp boosted its position in shares of Ferguson by 1.9% during the third quarter. State Street Corp now owns 4,437,468 shares of the company’s stock worth $1,000,152,000 after buying an additional 81,094 shares during the period. Franklin Resources Inc. boosted its position in shares of Ferguson by 2.6% during the third quarter. Franklin Resources Inc. now owns 4,367,818 shares of the company’s stock worth $980,921,000 after buying an additional 112,157 shares during the period. Wellington Management Group LLP boosted its position in shares of Ferguson by 22.4% during the third quarter. Wellington Management Group LLP now owns 3,734,911 shares of the company’s stock worth $838,786,000 after buying an additional 682,666 shares during the period. Finally, Soroban Capital Partners LP boosted its position in shares of Ferguson by 2.8% during the second quarter. Soroban Capital Partners LP now owns 3,705,056 shares of the company’s stock worth $806,776,000 after buying an additional 100,559 shares during the period. 81.98% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Truist Financial upped their price objective on Ferguson from $260.00 to $300.00 and gave the stock a “buy” rating in a research report on Wednesday, February 25th. Wells Fargo & Company increased their price target on Ferguson from $260.00 to $285.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Citigroup reissued a “neutral” rating on shares of Ferguson in a research report on Wednesday, May 6th. UBS Group increased their price target on Ferguson from $220.00 to $252.00 and gave the company a “neutral” rating in a research report on Wednesday, February 25th. Finally, Barclays increased their price target on Ferguson from $295.00 to $297.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $269.73.

Ferguson Stock Performance

FERG opened at $223.63 on Friday. Ferguson plc has a 12-month low of $176.26 and a 12-month high of $271.64. The stock has a market cap of $43.37 billion, a price-to-earnings ratio of 26.00, a PEG ratio of 1.59 and a beta of 1.23. The business has a 50 day moving average of $241.07 and a 200-day moving average of $243.71. The company has a quick ratio of 1.01, a current ratio of 1.88 and a debt-to-equity ratio of 0.68.

Ferguson (NYSE:FERG) last released its quarterly earnings data on Tuesday, May 5th. The company reported $2.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.14 by $0.14. Ferguson had a return on equity of 38.92% and a net margin of 6.98%.The company had revenue of $7.47 billion during the quarter. During the same period in the previous year, the business earned $2.50 earnings per share. The business’s quarterly revenue was up 3.6% on a year-over-year basis. On average, equities research analysts expect that Ferguson plc will post 11.25 earnings per share for the current year.

Ferguson announced that its board has initiated a share buyback plan 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 shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Ferguson Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Friday, May 15th will be given a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, May 15th. Ferguson’s dividend payout ratio (DPR) is presently 41.40%.

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.