Daiwa Securities Group Inc. Trims Stock Position in Ferguson plc $FERG

Daiwa Securities Group Inc. cut its stake in Ferguson plc (NYSE:FERG) by 54.8% in the fourth quarter, Holdings Channel.com reports. The fund owned 32,685 shares of the company’s stock after selling 39,675 shares during the quarter. Daiwa Securities Group Inc.’s holdings in Ferguson were worth $7,277,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

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

Ferguson Price Performance

Shares of NYSE:FERG opened at $229.14 on Monday. The company has a 50-day simple moving average of $241.02 and a 200-day simple moving average of $241.37. Ferguson plc has a one year low of $207.64 and a one year 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. The stock has a market capitalization of $44.44 billion, a price-to-earnings ratio of 26.64, a PEG ratio of 1.63 and a beta of 1.15.

Ferguson (NYSE:FERG) last announced its earnings results on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, beating analysts’ consensus estimates of $2.14 by $0.14. Ferguson had a net margin of 6.98% and a return on equity of 38.81%. The business had revenue of $7.47 billion during the quarter. During the same period in the previous year, the company posted $2.50 earnings per share. Ferguson’s quarterly revenue was up 3.6% on a year-over-year basis. On average, analysts predict that Ferguson plc will post 11.26 EPS for the current year.

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

Ferguson Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 8th. Stockholders of record on Friday, May 15th will be paid a dividend of $0.89 per share. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date is Friday, May 15th. Ferguson’s payout ratio is 41.40%.

Analysts Set New Price Targets

FERG has been the topic of a number of recent research reports. Royal Bank Of Canada lifted their price objective on shares of Ferguson from $271.00 to $281.00 and gave the company an “outperform” rating in a research note on Wednesday, May 6th. Truist Financial upped their target price on shares of Ferguson from $260.00 to $300.00 and gave the company a “buy” rating in a report on Wednesday, February 25th. Citigroup reaffirmed a “neutral” rating on shares of Ferguson in a report on Wednesday, May 6th. Weiss Ratings cut shares of Ferguson from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 20th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $300.00 target price on shares of Ferguson in a report on Tuesday, February 24th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Ferguson presently has a consensus rating of “Moderate Buy” and an average price target of $273.64.

Ferguson 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.