Handelsbanken Fonder AB Reduces Holdings in Ferguson plc $FERG

Handelsbanken Fonder AB lowered its position in shares of Ferguson plc (NYSE:FERG) by 11.8% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 90,326 shares of the company’s stock after selling 12,042 shares during the period. Handelsbanken Fonder AB’s holdings in Ferguson were worth $20,109,000 as of its most recent SEC filing.

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

Ferguson Stock Performance

Shares of FERG opened at $225.04 on Thursday. The business’s 50 day moving average is $240.37 and its two-hundred day moving average is $243.12. Ferguson plc has a 52-week low of $176.26 and a 52-week high of $271.64. The firm has a market cap of $43.64 billion, a price-to-earnings ratio of 26.17, a PEG ratio of 1.57 and a beta of 1.23. The company has a quick ratio of 1.01, a current ratio of 1.88 and a debt-to-equity ratio of 0.68.

Ferguson (NYSE:FERG) last announced its earnings results on Tuesday, May 5th. The company reported $2.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.14 by $0.14. Ferguson had a return on equity of 38.92% and a net margin of 6.98%.The company had revenue of $7.47 billion for the quarter. During the same period in the previous year, the company earned $2.50 earnings per share. The business’s revenue for the quarter was up 3.6% on a year-over-year basis. Analysts forecast that Ferguson plc will post 11.25 EPS for the current fiscal year.

Ferguson announced that its Board of Directors has authorized a share buyback plan on Tuesday, May 5th that permits the company to repurchase $2.00 billion in shares. This repurchase authorization permits the company to purchase up to 3.9% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

Ferguson Announces Dividend

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 issued a $0.89 dividend. 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%.

Analyst Ratings Changes

A number of research firms have recently issued reports on FERG. Wells Fargo & Company lifted their price objective on shares of Ferguson from $260.00 to $285.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Oppenheimer lifted their price objective on shares of Ferguson from $255.00 to $280.00 and gave the company an “outperform” rating in a research note on Wednesday, February 25th. Barclays upped their target price on Ferguson from $295.00 to $297.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Weiss Ratings lowered Ferguson from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, May 6th. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $300.00 target price on shares of Ferguson in a research report on Tuesday, February 24th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $269.73.

About Ferguson

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.