Ferguson (NASDAQ:FERG) Sees Strong Trading Volume on Better-Than-Expected Earnings

Ferguson plc (NASDAQ:FERG) shares saw an uptick in trading volume on Tuesday following a better than expected earnings announcement. 722,834 shares changed hands during trading, a decline of 38% from the previous session’s volume of 1,162,598 shares.The stock last traded at $200.63 and had previously closed at $197.22.

The company reported $2.98 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.86 by $0.12. Ferguson had a return on equity of 36.89% and a net margin of 6.33%. The company had revenue of $7.95 billion for the quarter, compared to the consensus estimate of $8.01 billion. During the same period last year, the business posted $2.77 earnings per share. The firm’s revenue was up 1.4% compared to the same quarter last year.

Ferguson Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 8th. Investors of record on Friday, September 27th will be paid a dividend of $0.79 per share. This represents a $3.16 annualized dividend and a yield of 1.54%. The ex-dividend date of this dividend is Friday, September 27th. Ferguson’s payout ratio is currently 34.54%.

Ferguson announced that its board has initiated a stock repurchase program on Tuesday, June 4th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 2.6% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Analyst Upgrades and Downgrades

FERG has been the subject of a number of research analyst reports. UBS Group upped their price objective on shares of Ferguson from $228.00 to $236.00 and gave the company a “buy” rating in a research report on Wednesday. Jefferies Financial Group upped their price target on Ferguson from $238.00 to $250.00 and gave the company a “buy” rating in a report on Wednesday, July 17th. Citigroup lifted their price objective on Ferguson from $203.00 to $221.00 and gave the stock a “neutral” rating in a report on Wednesday. Robert W. Baird upped their target price on Ferguson from $222.00 to $225.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, Wells Fargo & Company decreased their price target on shares of Ferguson from $250.00 to $225.00 and set an “overweight” rating on the stock in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $231.57.

Institutional Trading of Ferguson

Hedge funds and other institutional investors have recently made changes to their positions in the business. Bank of New York Mellon Corp increased its position in Ferguson by 375.4% in the 2nd quarter. Bank of New York Mellon Corp now owns 6,289,864 shares of the company’s stock valued at $1,218,032,000 after acquiring an additional 4,966,821 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of Ferguson by 589.0% in the first quarter. Price T Rowe Associates Inc. MD now owns 1,619,637 shares of the company’s stock valued at $353,778,000 after purchasing an additional 1,384,570 shares in the last quarter. Dimensional Fund Advisors LP raised its position in Ferguson by 10.9% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,563,558 shares of the company’s stock worth $302,781,000 after purchasing an additional 153,757 shares during the last quarter. First Pacific Advisors LP lifted its holdings in Ferguson by 1.4% during the 2nd quarter. First Pacific Advisors LP now owns 1,104,289 shares of the company’s stock worth $213,846,000 after buying an additional 15,700 shares in the last quarter. Finally, Envestnet Asset Management Inc. boosted its position in Ferguson by 9.5% in the 4th quarter. Envestnet Asset Management Inc. now owns 975,924 shares of the company’s stock valued at $188,422,000 after buying an additional 84,390 shares during the last quarter. 81.98% of the stock is currently owned by institutional investors and hedge funds.

Ferguson Price Performance

The company has a market capitalization of $41.50 billion, a price-to-earnings ratio of 22.46, a PEG ratio of 6.13 and a beta of 1.21. The company has a current ratio of 1.68, a quick ratio of 0.94 and a debt-to-equity ratio of 0.64. The company has a 50 day moving average price of $204.35 and a 200 day moving average price of $206.95.

About Ferguson

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets. The company also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, fabrication, and others, as well as heating, ventilation, and air conditioning products under the Ferguson brand name.