Zelman & Associates Upgrades Ferguson (NYSE:FERG) to “Outperform”

Ferguson (NYSE:FERG) was upgraded by investment analysts at Zelman & Associates from a “hold” rating to an “outperform” rating in a research note issued to investors on Friday, MarketBeat Ratings reports. The brokerage presently has a $285.00 target price on the stock. Zelman & Associates’ price objective points to a potential upside of 23.17% from the company’s previous close.

Other research analysts also recently issued reports about the stock. Barclays boosted their target price on shares of Ferguson from $295.00 to $297.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Royal Bank Of Canada lifted their price objective on Ferguson from $271.00 to $281.00 and gave the company an “outperform” rating in a research note on Wednesday, May 6th. Wells Fargo & Company lifted their price objective on Ferguson from $260.00 to $285.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Weiss Ratings raised Ferguson from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, July 2nd. Finally, Citigroup restated a “neutral” rating on shares of Ferguson in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $277.21.

Ferguson Stock Performance

FERG opened at $231.39 on Friday. The company has a current ratio of 1.78, a quick ratio of 0.96 and a debt-to-equity ratio of 0.68. Ferguson has a 12-month low of $207.64 and a 12-month high of $271.64. The firm has a 50 day moving average of $230.34 and a two-hundred day moving average of $240.30. The firm has a market capitalization of $44.88 billion, a PE ratio of 26.91, a P/E/G ratio of 1.64 and a beta of 1.13.

Ferguson (NYSE:FERG) last released its quarterly earnings data on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, beating the consensus estimate of $2.14 by $0.14. The business had revenue of $7.47 billion for the quarter. Ferguson had a net margin of 6.98% and a return on equity of 38.81%. The firm’s revenue was up 3.6% on a year-over-year basis. During the same period last year, the company earned $2.50 earnings per share. On average, analysts anticipate that Ferguson will post 11.27 EPS for the current year.

Ferguson declared that its Board of Directors has initiated a share repurchase program on Tuesday, May 5th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 3.9% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in FERG. Handelsbanken Fonder AB raised its stake in shares of Ferguson by 6.6% during the 2nd quarter. Handelsbanken Fonder AB now owns 96,068 shares of the company’s stock worth $22,800,000 after buying an additional 5,936 shares during the period. HF Advisory Group LLC grew its stake in Ferguson by 1.6% in the 2nd quarter. HF Advisory Group LLC now owns 5,000 shares of the company’s stock valued at $1,187,000 after acquiring an additional 77 shares during the period. Chesley Taft & Associates LLC grew its stake in Ferguson by 3.9% in the 2nd quarter. Chesley Taft & Associates LLC now owns 6,992 shares of the company’s stock valued at $1,659,000 after acquiring an additional 260 shares during the period. PensionDanmark Pensionsforsikringsaktieselskab increased its holdings in Ferguson by 3.5% in the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 37,406 shares of the company’s stock worth $8,878,000 after acquiring an additional 1,249 shares in the last quarter. Finally, GAMMA Investing LLC raised its position in Ferguson by 39.1% during the second quarter. GAMMA Investing LLC now owns 6,378 shares of the company’s stock worth $1,514,000 after acquiring an additional 1,793 shares during the period. 81.98% of the stock is owned by institutional investors and hedge funds.

Ferguson Company Profile

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.