Ferguson (NASDAQ:FERG) Reaches New 12-Month Low on Analyst Downgrade

Shares of Ferguson plc (NASDAQ:FERG) hit a new 52-week low during trading on Tuesday after Citigroup lowered their price target on the stock from $221.00 to $189.00. Citigroup currently has a neutral rating on the stock. Ferguson traded as low as $171.46 and last traded at $172.70, with a volume of 220820 shares trading hands. The stock had previously closed at $174.18.

A number of other research analysts have also recently commented on FERG. UBS Group boosted their price objective on Ferguson from $228.00 to $236.00 and gave the stock a “buy” rating in a research note on Wednesday, September 18th. Berenberg Bank boosted their price target on Ferguson from $224.00 to $240.00 and gave the stock a “buy” rating in a research report on Wednesday, December 11th. Wells Fargo & Company lowered their price objective on shares of Ferguson from $220.00 to $215.00 and set an “overweight” rating for the company in a research report on Tuesday, December 17th. Robert W. Baird lowered their price target on shares of Ferguson from $230.00 to $225.00 and set an “outperform” rating for the company in a report on Wednesday, December 11th. Finally, Barclays cut their price objective on shares of Ferguson from $245.00 to $234.00 and set an “overweight” rating on the stock in a report on Thursday, December 12th. Two research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $222.40.

Insiders Place Their Bets

In other Ferguson news, CMO Victoria Morrissey sold 1,468 shares of the business’s stock in a transaction dated Monday, October 14th. The shares were sold at an average price of $201.20, for a total transaction of $295,361.60. Following the completion of the transaction, the chief marketing officer now directly owns 5,205 shares of the company’s stock, valued at $1,047,246. The trade was a 22.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Ian T. Graham sold 5,778 shares of the firm’s stock in a transaction that occurred on Monday, October 14th. The shares were sold at an average price of $201.27, for a total value of $1,162,938.06. Following the completion of the sale, the insider now owns 5,938 shares in the company, valued at approximately $1,195,141.26. This represents a 49.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 12,313 shares of company stock valued at $2,477,901. Company insiders own 0.16% of the company’s stock.

Hedge Funds Weigh In On Ferguson

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Acadian Asset Management LLC boosted its holdings in shares of Ferguson by 43.3% in the second quarter. Acadian Asset Management LLC now owns 11,145 shares of the company’s stock worth $2,155,000 after buying an additional 3,366 shares during the period. Choreo LLC bought a new position in Ferguson in the 2nd quarter worth $1,341,000. LGT Group Foundation boosted its position in shares of Ferguson by 24.2% in the second quarter. LGT Group Foundation now owns 1,404 shares of the company’s stock valued at $272,000 after acquiring an additional 274 shares during the period. Coldstream Capital Management Inc. grew its position in Ferguson by 71.1% during the second quarter. Coldstream Capital Management Inc. now owns 3,833 shares of the company’s stock worth $742,000 after buying an additional 1,593 shares in the last quarter. Finally, Headlands Technologies LLC bought a new stake in Ferguson in the 2nd quarter valued at $490,000. 81.98% of the stock is owned by institutional investors.

Ferguson Price Performance

The company’s 50-day moving average is $195.71 and its 200-day moving average is $199.07. The company has a quick ratio of 1.00, a current ratio of 1.80 and a debt-to-equity ratio of 0.89. The stock has a market cap of $34.42 billion, a price-to-earnings ratio of 20.67, a price-to-earnings-growth ratio of 1.90 and a beta of 1.24.

Ferguson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, February 6th. Stockholders of record on Friday, December 20th will be issued a $0.83 dividend. This is a positive change from Ferguson’s previous quarterly dividend of $0.79. The ex-dividend date is Friday, December 20th. This represents a $3.32 annualized dividend and a dividend yield of 1.93%. Ferguson’s dividend payout ratio is presently 39.86%.

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.