Handelsbanken Fonder AB Raises Position in Ferguson plc $FERG

Handelsbanken Fonder AB increased its stake in Ferguson plc (NYSE:FERG) by 6.6% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 96,068 shares of the company’s stock after purchasing an additional 5,936 shares during the quarter. Handelsbanken Fonder AB’s holdings in Ferguson were worth $22,800,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of FERG. Simplicity Wealth LLC raised its stake in shares of Ferguson by 1.6% in the fourth quarter. Simplicity Wealth LLC now owns 3,132 shares of the company’s stock valued at $697,000 after buying an additional 48 shares during the period. Sivia Capital Partners LLC grew its stake in shares of Ferguson by 2.9% during the 4th quarter. Sivia Capital Partners LLC now owns 1,685 shares of the company’s stock worth $375,000 after acquiring an additional 48 shares during the period. Northwestern Mutual Wealth Management Co. grew its stake in shares of Ferguson by 7.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company’s stock worth $150,000 after acquiring an additional 48 shares during the period. REAP Financial Group LLC increased its holdings in Ferguson by 13.4% in the 4th quarter. REAP Financial Group LLC now owns 431 shares of the company’s stock worth $96,000 after acquiring an additional 51 shares during the last quarter. Finally, Ethic Inc. increased its holdings in Ferguson by 0.3% in the 4th quarter. Ethic Inc. now owns 22,802 shares of the company’s stock worth $5,076,000 after acquiring an additional 62 shares during the last quarter. Hedge funds and other institutional investors own 81.98% of the company’s stock.

Key Headlines Impacting Ferguson

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: Strong quarterly performance and improved outlook: Ferguson reported second-quarter EPS of $3.39, exceeding the $3.23 consensus estimate, on $8.75 billion in revenue. The company also raised its full-year outlook, prompting analysts to increase their forecasts. Ferguson Analysts Boost Their Forecasts Following Better-Than-Expected Q2 Earnings
• Positive Sentiment: Higher analyst price targets: Wells Fargo raised its target from $285 to $295 and maintained an “overweight” rating, while Robert W. Baird increased its target from $285 to $288 and kept an “outperform” rating. These revisions indicate continued confidence in Ferguson’s earnings growth and industry position. Ferguson Analyst Price Target Revisions
• Neutral Sentiment: Debt financing announced: Ferguson priced $700 million of 4.800% senior notes due 2029 and $500 million of 5.600% senior notes due 2036. The proceeds could support general corporate purposes or refinancing, but the transaction adds interest expense and debt obligations. Ferguson Prices $1.2 Billion of Senior Unsecured Notes
• Negative Sentiment: Potential pressure from higher leverage: Although Ferguson’s operating results were strong, investors may focus on the cost of the new borrowing, particularly the 5.600% coupon on the 2036 notes, as elevated interest expense can reduce future earnings and financial flexibility.

Ferguson Stock Performance

NYSE:FERG opened at $245.27 on Thursday. The business’s fifty day moving average is $235.04 and its 200 day moving average is $240.87. The firm has a market cap of $47.45 billion, a price-to-earnings ratio of 28.52, a PEG ratio of 1.77 and a beta of 1.14. The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.96 and a current ratio of 1.78. Ferguson plc has a 52-week low of $207.64 and a 52-week high of $271.64.

Ferguson (NYSE:FERG) last issued its earnings results on Monday, August 10th. The company reported $3.39 EPS for the quarter, topping the consensus estimate of $3.23 by $0.16. The business had revenue of $8.75 billion during the quarter. Ferguson had a return on equity of 37.68% and a net margin of 6.82%. Research analysts predict that Ferguson plc will post 11.29 EPS for the current year.

Ferguson Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 7th. Stockholders of record on Friday, August 21st will be given a $0.89 dividend. This represents a $3.56 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Friday, August 21st. Ferguson’s dividend payout ratio (DPR) is 41.40%.

Ferguson announced that its board has authorized a share buyback program on Tuesday, May 5th that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the company to reacquire up to 3.9% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities research analysts have commented on FERG shares. Wells Fargo & Company upped their price objective on shares of Ferguson from $285.00 to $295.00 and gave the company an “overweight” rating in a report on Tuesday. Barclays lifted their target price on shares of Ferguson from $297.00 to $313.00 and gave the stock an “overweight” rating in a research note on Tuesday. Weiss Ratings raised shares of Ferguson from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, July 2nd. Citigroup restated a “neutral” rating on shares of Ferguson in a research note on Wednesday, May 6th. Finally, Zelman & Associates raised shares of Ferguson from a “hold” rating to an “outperform” rating and set a $285.00 price objective for the company in a report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, Ferguson presently has an average rating of “Moderate Buy” and an average price target of $284.86.

About Ferguson

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.