Ferguson (NASDAQ:FERG) Shares Gap Up on Better-Than-Expected Earnings

Ferguson plc (NASDAQ:FERG)’s share price gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $180.29, but opened at $201.36. Ferguson shares last traded at $203.91, with a volume of 1,541,981 shares trading hands.

The company reported $2.50 earnings per share for the quarter, topping analysts’ consensus estimates of $2.06 by $0.44. Ferguson had a net margin of 5.68% and a return on equity of 34.63%. During the same period last year, the business posted $2.32 EPS. Ferguson’s quarterly revenue was up 4.3% on a year-over-year basis.

Ferguson Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 6th. Shareholders of record on Friday, June 20th will be paid a dividend of $0.83 per share. This represents a $3.32 dividend on an annualized basis and a yield of 1.57%. The ex-dividend date of this dividend is Friday, June 20th. Ferguson’s dividend payout ratio (DPR) is 40.84%.

Analyst Ratings Changes

FERG has been the subject of a number of recent research reports. Robert W. Baird set a $190.00 target price on Ferguson and gave the company an “outperform” rating in a report on Wednesday, March 12th. Oppenheimer decreased their price target on Ferguson from $234.00 to $189.00 and set an “outperform” rating for the company in a report on Wednesday, March 12th. Royal Bank of Canada reiterated an “outperform” rating and set a $189.00 target price on shares of Ferguson in a research report on Tuesday, March 18th. Barclays dropped their price target on Ferguson from $211.00 to $190.00 and set an “overweight” rating on the stock in a research report on Wednesday, March 12th. Finally, JPMorgan Chase & Co. boosted their price target on Ferguson from $190.00 to $200.00 and gave the company an “overweight” rating in a research report on Tuesday, May 27th. Five analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $200.15.

Institutional Trading of Ferguson

Several large investors have recently added to or reduced their stakes in FERG. Focus Partners Wealth grew its stake in shares of Ferguson by 22.7% during the first quarter. Focus Partners Wealth now owns 3,140 shares of the company’s stock valued at $503,000 after acquiring an additional 581 shares in the last quarter. SCS Capital Management LLC acquired a new stake in shares of Ferguson during the first quarter valued at about $435,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Ferguson by 11.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,932,959 shares of the company’s stock valued at $309,718,000 after acquiring an additional 205,531 shares in the last quarter. Zimmer Partners LP acquired a new stake in shares of Ferguson during the first quarter valued at about $3,605,000. Finally, Rivermont Capital Management LP grew its stake in shares of Ferguson by 60.0% during the first quarter. Rivermont Capital Management LP now owns 99,279 shares of the company’s stock valued at $15,907,000 after acquiring an additional 37,227 shares in the last quarter. 81.98% of the stock is currently owned by institutional investors and hedge funds.

Ferguson Stock Up 17.3%

The firm has a 50 day moving average price of $170.30 and a two-hundred day moving average price of $177.80. The company has a quick ratio of 0.91, a current ratio of 1.68 and a debt-to-equity ratio of 0.83. The company has a market capitalization of $42.27 billion, a price-to-earnings ratio of 25.38, a P/E/G ratio of 1.69 and a beta of 1.14.

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.