Handelsbanken Fonder AB Purchases 5,936 Shares of Ferguson plc $FERG

Handelsbanken Fonder AB increased its holdings in Ferguson plc (NYSE:FERG) by 6.6% during the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 96,068 shares of the company’s stock after buying an additional 5,936 shares during the period. Handelsbanken Fonder AB’s holdings in Ferguson were worth $22,800,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Leonteq Securities AG bought a new position in Ferguson in the 4th quarter worth about $26,000. Basepoint Wealth LLC purchased a new stake in shares of Ferguson in the 4th quarter valued at about $26,000. Zions Bancorporation National Association UT boosted its position in shares of Ferguson by 123.4% during the 4th quarter. Zions Bancorporation National Association UT now owns 143 shares of the company’s stock valued at $32,000 after acquiring an additional 79 shares during the last quarter. Johnson Financial Group Inc. bought a new stake in shares of Ferguson during the 3rd quarter valued at about $34,000. Finally, Eastern Bank purchased a new position in shares of Ferguson during the second quarter worth about $42,000. Institutional investors own 81.98% of the company’s stock.

Ferguson Price Performance

Shares of Ferguson stock opened at $245.27 on Thursday. The company has a current ratio of 1.78, a quick ratio of 0.96 and a debt-to-equity ratio of 0.68. The firm has a market capitalization of $47.45 billion, a PE ratio of 28.52, a price-to-earnings-growth ratio of 1.77 and a beta of 1.14. The business’s 50-day moving average price is $235.04 and its 200-day moving average price is $240.87. Ferguson plc has a 12 month low of $207.64 and a 12 month high of $271.64.

Ferguson (NYSE:FERG) last released its earnings results on Monday, August 10th. The company reported $3.39 earnings per share for the quarter, topping analysts’ consensus estimates of $3.23 by $0.16. The company had revenue of $8.75 billion during the quarter. Ferguson had a return on equity of 37.68% and a net margin of 6.82%. Sell-side analysts forecast that Ferguson plc will post 11.29 EPS for the current fiscal year.

Ferguson declared that its board has approved a stock buyback plan on Tuesday, May 5th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 3.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board believes its shares are undervalued.

Ferguson Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Friday, August 21st will be paid a dividend of $0.89 per share. The ex-dividend date of this dividend is Friday, August 21st. This represents a $3.56 annualized dividend and a dividend yield of 1.5%. Ferguson’s dividend payout ratio (DPR) is 41.40%.

Key Ferguson News

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: Strong quarterly performance and improved outlook: Ferguson reported second-quarter EPS of $3.39, exceeding the $3.23 consensus estimate, on $8.75 billion in revenue. The company also raised its full-year outlook, prompting analysts to increase their forecasts. Ferguson Analysts Boost Their Forecasts Following Better-Than-Expected Q2 Earnings
• Positive Sentiment: Higher analyst price targets: Wells Fargo raised its target from $285 to $295 and maintained an “overweight” rating, while Robert W. Baird increased its target from $285 to $288 and kept an “outperform” rating. These revisions indicate continued confidence in Ferguson’s earnings growth and industry position. Ferguson Analyst Price Target Revisions
• Neutral Sentiment: Debt financing announced: Ferguson priced $700 million of 4.800% senior notes due 2029 and $500 million of 5.600% senior notes due 2036. The proceeds could support general corporate purposes or refinancing, but the transaction adds interest expense and debt obligations. Ferguson Prices $1.2 Billion of Senior Unsecured Notes
• Negative Sentiment: Potential pressure from higher leverage: Although Ferguson’s operating results were strong, investors may focus on the cost of the new borrowing, particularly the 5.600% coupon on the 2036 notes, as elevated interest expense can reduce future earnings and financial flexibility.

Analyst Ratings Changes

Several research firms recently weighed in on FERG. Sanford C. Bernstein upped their price objective on shares of Ferguson from $310.00 to $325.00 and gave the stock an “outperform” rating in a research report on Tuesday. Zelman & Associates upgraded shares of Ferguson from a “hold” rating to an “outperform” rating and set a $285.00 target price for the company in a research report on Friday, July 17th. Robert W. Baird boosted their price target on shares of Ferguson from $285.00 to $288.00 and gave the stock an “outperform” rating in a research note on Tuesday. Citigroup reissued a “neutral” rating on shares of Ferguson in a report on Wednesday, May 6th. Finally, UBS Group raised their price objective on shares of Ferguson from $252.00 to $256.00 and gave the company a “neutral” rating in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Ferguson has an average rating of “Moderate Buy” and an average price target of $284.86.

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.