Ferguson plc (NYSE:FERG) Given Average Rating of “Moderate Buy” by Brokerages

Shares of Ferguson plc (NYSE:FERG) have been assigned an average rating of “Moderate Buy” from the seventeen brokerages that are currently covering the company, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $284.8564.

FERG has been the topic of several analyst reports. The Goldman Sachs Group cut Ferguson from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $315.00 to $265.00 in a report on Monday, July 6th. Barclays upped 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. Weiss Ratings raised Ferguson from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, July 2nd. Zelman & Associates upgraded Ferguson from a “hold” rating to an “outperform” rating and set a $285.00 price target for the company in a report on Friday, July 17th. Finally, Citigroup restated a “neutral” rating on shares of Ferguson in a report on Wednesday, May 6th.

Ferguson Stock Performance

Shares of FERG opened at $245.38 on Thursday. Ferguson has a 1 year low of $207.64 and a 1 year high of $271.64. The company’s 50 day simple moving average is $236.12 and its 200 day simple moving average is $240.72. The company has a market capitalization of $47.47 billion, a price-to-earnings ratio of 28.53, a PEG ratio of 1.72 and a beta of 1.14. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.93 and a current ratio of 1.73.

Ferguson (NYSE:FERG) last released its earnings results on Monday, August 10th. The company reported $3.39 EPS for the quarter, topping the consensus estimate of $3.23 by $0.16. The firm had revenue of $8.75 billion during the quarter. Ferguson had a net margin of 6.82% and a return on equity of 37.24%. On average, sell-side analysts predict that Ferguson will post 11.35 EPS for the current year.

Ferguson announced that its board has initiated a share repurchase plan on Tuesday, May 5th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 3.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Ferguson Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Investors of record on Friday, August 21st will be issued a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, August 21st. Ferguson’s payout ratio is presently 41.40%.

Hedge Funds Weigh In On Ferguson

A number of large investors have recently bought and sold shares of FERG. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Ferguson by 23.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,262 shares of the company’s stock worth $2,445,000 after buying an additional 2,940 shares during the last quarter. Caxton Associates LLP acquired a new position in Ferguson in the first quarter valued at $310,000. Focus Partners Wealth boosted its holdings in Ferguson by 22.7% in the first quarter. Focus Partners Wealth now owns 3,140 shares of the company’s stock valued at $503,000 after acquiring an additional 581 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in Ferguson during the second quarter valued at about $257,000. Finally, Northwestern Mutual Wealth Management Co. grew its position in Ferguson by 7.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company’s stock valued at $150,000 after acquiring an additional 48 shares during the period. Hedge funds and other institutional investors own 81.98% of the company’s stock.

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.