Ferguson (NASDAQ:FERG) Shares Gap Up – Still a Buy?

Ferguson plc (NASDAQ:FERG)’s share price gapped up prior to trading on Tuesday . The stock had previously closed at $214.10, but opened at $218.98. Ferguson shares last traded at $217.31, with a volume of 309,146 shares traded.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Barclays increased their target price on shares of Ferguson from $229.00 to $245.00 and gave the stock an “overweight” rating in a report on Wednesday, September 18th. UBS Group upped their target price on Ferguson from $228.00 to $236.00 and gave the company a “buy” rating in a report on Wednesday, September 18th. Wells Fargo & Company boosted their price objective on Ferguson from $225.00 to $232.00 and gave the company an “overweight” rating in a research report on Thursday, November 7th. Royal Bank of Canada increased their target price on Ferguson from $211.00 to $219.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 18th. Finally, Oppenheimer began coverage on shares of Ferguson in a research report on Wednesday, October 23rd. They set an “outperform” rating and a $234.00 price target for the company. Two analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $233.38.

Ferguson Price Performance

The business’s 50-day simple moving average is $201.96 and its 200 day simple moving average is $202.40. The company has a current ratio of 1.80, a quick ratio of 1.00 and a debt-to-equity ratio of 0.89. The company has a market capitalization of $43.84 billion, a P/E ratio of 25.10, a P/E/G ratio of 2.10 and a beta of 1.21.

Ferguson (NASDAQ:FERG) last issued its quarterly earnings results on Tuesday, September 17th. The company reported $2.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.86 by $0.12. Ferguson had a return on equity of 36.53% and a net margin of 5.85%. The firm had revenue of $7.95 billion during the quarter, compared to analyst estimates of $8.01 billion. During the same period last year, the company posted $2.77 EPS. The firm’s quarterly revenue was up 1.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Ferguson plc will post 9.77 EPS for the current year.

Ferguson Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, November 8th. Stockholders of record on Friday, September 27th were given a dividend of $0.79 per share. The ex-dividend date was Friday, September 27th. This represents a $3.16 annualized dividend and a dividend yield of 1.45%. Ferguson’s dividend payout ratio (DPR) is 37.05%.

Insider Buying and Selling

In related news, CAO Richard Winckler sold 1,325 shares of the stock in a transaction dated Monday, October 14th. The stock was sold at an average price of $201.75, for a total value of $267,318.75. Following the completion of the sale, the chief accounting officer now directly owns 1,000 shares of the company’s stock, valued at approximately $201,750. This represents a 56.99 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Garland Williams sold 1,118 shares of the stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $201.22, for a total transaction of $224,963.96. Following the completion of the sale, the senior vice president now directly owns 1,882 shares of the company’s stock, valued at $378,696.04. This trade represents a 37.27 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 12,313 shares of company stock worth $2,477,901 in the last ninety days. 0.16% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in FERG. Franklin Resources Inc. increased its stake in shares of Ferguson by 6.0% in the third quarter. Franklin Resources Inc. now owns 2,371,954 shares of the company’s stock worth $477,858,000 after acquiring an additional 133,769 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new position in Ferguson in the 3rd quarter worth about $66,000. Anchor Investment Management LLC purchased a new stake in shares of Ferguson during the 3rd quarter worth about $112,000. Neo Ivy Capital Management acquired a new stake in shares of Ferguson during the 3rd quarter valued at about $970,000. Finally, Geode Capital Management LLC grew its stake in shares of Ferguson by 0.8% in the 3rd quarter. Geode Capital Management LLC now owns 3,197,621 shares of the company’s stock valued at $633,409,000 after buying an additional 25,677 shares in the last quarter. Institutional investors and hedge funds own 81.98% of the company’s stock.

Ferguson Company Profile

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.