Ferguson (NYSE:FERG) Shares Gap Up – Here’s Why

Ferguson plc (NYSE:FERG) shares gapped up prior to trading on Monday . The stock had previously closed at $234.33, but opened at $252.00. Ferguson shares last traded at $255.5610, with a volume of 2,683,701 shares trading hands.

Analysts Set New Price Targets

A number of research firms have commented on FERG. Zelman & Associates raised shares of Ferguson from a “hold” rating to an “outperform” rating and set a $285.00 price target for the company in a research note on Friday, July 17th. Citigroup reissued a “neutral” rating on shares of Ferguson in a report on Wednesday, May 6th. The Goldman Sachs Group cut shares of Ferguson from a “buy” rating to a “neutral” rating and lowered their price objective for the company from $315.00 to $265.00 in a research report on Monday, July 6th. Royal Bank Of Canada lifted their price objective 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, Weiss Ratings upgraded shares of Ferguson from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, July 2nd. One 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 company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $277.21.

Ferguson Trading Up 7.9%

The stock has a fifty day moving average of $230.62 and a two-hundred day moving average of $240.51. The company has a market capitalization of $49.06 billion, a PE ratio of 29.44, a PEG ratio of 1.66 and a beta of 1.14. 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 (NYSE:FERG) last issued its earnings results on Tuesday, May 5th. The company reported $2.28 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter. During the same period in the prior year, the company earned $2.50 EPS. The firm’s quarterly revenue was up 3.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Ferguson plc will post 11.25 earnings per share for the current fiscal year.

Ferguson declared that its board has approved a stock 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 purchase up to 3.9% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Ferguson

A number of institutional investors have recently made changes to their positions in the business. Signaturefd LLC grew its holdings in shares of Ferguson by 1.1% during the 4th quarter. Signaturefd LLC now owns 3,979 shares of the company’s stock valued at $886,000 after purchasing an additional 44 shares during the last quarter. Simplicity Wealth LLC lifted its stake in Ferguson by 1.6% in the fourth quarter. Simplicity Wealth LLC now owns 3,132 shares of the company’s stock worth $697,000 after purchasing an additional 48 shares during the last quarter. Sivia Capital Partners LLC boosted its position in Ferguson by 2.9% during the fourth quarter. Sivia Capital Partners LLC now owns 1,685 shares of the company’s stock valued at $375,000 after buying an additional 48 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in shares of Ferguson by 7.5% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company’s stock valued at $150,000 after buying an additional 48 shares during the last quarter. Finally, REAP Financial Group LLC increased its holdings in shares of Ferguson by 13.4% in the fourth quarter. REAP Financial Group LLC now owns 431 shares of the company’s stock worth $96,000 after buying an additional 51 shares during the period. Hedge funds and other institutional investors own 81.98% of the company’s stock.

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.