Cantillon Capital Management LLC Trims Stake in Ferguson plc $FERG

Cantillon Capital Management LLC cut its holdings in Ferguson plc (NYSE:FERG) by 11.9% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,749,302 shares of the company’s stock after selling 235,552 shares during the period. Ferguson accounts for 2.7% of Cantillon Capital Management LLC’s portfolio, making the stock its 14th largest holding. Cantillon Capital Management LLC owned 0.90% of Ferguson worth $408,042,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Basepoint Wealth LLC bought a new stake in shares of Ferguson during the 4th quarter valued at $26,000. Leonteq Securities AG purchased a new stake in shares of Ferguson in the 4th quarter worth $26,000. Central Pacific Bank Trust Division bought a new position in Ferguson in the 4th quarter worth $27,000. Zions Bancorporation National Association UT raised its holdings in Ferguson by 123.4% in the 4th quarter. Zions Bancorporation National Association UT now owns 143 shares of the company’s stock worth $32,000 after purchasing an additional 79 shares during the period. Finally, Grove Bank & Trust lifted its position in Ferguson by 154.4% during the fourth quarter. Grove Bank & Trust now owns 145 shares of the company’s stock valued at $32,000 after purchasing an additional 88 shares in the last quarter. Hedge funds and other institutional investors own 81.98% of the company’s stock.

Ferguson Trading Down 0.3%

Shares of FERG stock opened at $231.39 on Monday. Ferguson plc has a 52-week low of $207.64 and a 52-week high of $271.64. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.96 and a current ratio of 1.78. The firm has a market capitalization of $44.88 billion, a PE ratio of 26.91, a PEG ratio of 1.64 and a beta of 1.13. The stock has a fifty day simple moving average of $230.34 and a two-hundred day simple moving average of $240.39.

Ferguson (NYSE:FERG) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $2.28 EPS for the quarter, beating analysts’ consensus estimates of $2.14 by $0.14. Ferguson had a return on equity of 38.81% and a net margin of 6.98%.The business had revenue of $7.47 billion for the quarter. During the same period in the prior year, the business earned $2.50 earnings per share. Ferguson’s revenue was up 3.6% compared to the same quarter last year. On average, analysts predict that Ferguson plc will post 11.27 EPS for the current fiscal year.

Ferguson declared that its board has approved a share buyback program on Tuesday, May 5th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 3.9% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Ferguson Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 8th. Investors of record on Friday, May 15th were given a dividend of $0.89 per share. The ex-dividend date was Friday, May 15th. This represents a $3.56 annualized dividend and a dividend yield of 1.5%. Ferguson’s dividend payout ratio (DPR) is currently 41.40%.

Analyst Ratings Changes

Several research firms have issued reports on FERG. Citigroup reissued a “neutral” rating on shares of Ferguson in a report on Wednesday, May 6th. The Goldman Sachs Group downgraded Ferguson from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $315.00 to $265.00 in a research note on Monday, July 6th. Zelman & Associates upgraded Ferguson from a “hold” rating to an “outperform” rating and set a $285.00 price objective for the company in a research note on Friday. Royal Bank Of Canada increased their target price on shares of Ferguson from $271.00 to $281.00 and gave the stock an “outperform” rating in a report on Wednesday, May 6th. Finally, Wells Fargo & Company raised their target price on shares of Ferguson from $260.00 to $285.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $277.21.

Ferguson 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.