Ferguson (NASDAQ:FERG) Shares Gap Down Following Weak Earnings

Ferguson plc (NASDAQ:FERG) gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $165.56, but opened at $155.88. Ferguson shares last traded at $158.64, with a volume of 516,674 shares trading hands.

The company reported $1.52 earnings per share for the quarter, missing the consensus estimate of $1.58 by ($0.06). The company had revenue of $6.87 billion for the quarter, compared to analysts’ expectations of $6.76 billion. Ferguson had a return on equity of 34.63% and a net margin of 5.68%. The firm’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same period in the prior year, the firm posted $1.74 EPS.

Ferguson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, May 6th. Investors of record on Friday, March 21st will be paid a $0.83 dividend. The ex-dividend date is Friday, March 21st. This represents a $3.32 dividend on an annualized basis and a yield of 2.13%. Ferguson’s dividend payout ratio (DPR) is 39.86%.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Citigroup dropped their price target on Ferguson from $189.00 to $168.00 and set a “neutral” rating on the stock in a research note on Wednesday. Bank of America upgraded shares of Ferguson from an “underperform” rating to a “buy” rating and increased their price target for the stock from $185.00 to $225.00 in a report on Wednesday, January 8th. Zelman & Associates cut shares of Ferguson from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 17th. Berenberg Bank increased their price objective on shares of Ferguson from $224.00 to $240.00 and gave the stock a “buy” rating in a research note on Wednesday, December 11th. Finally, Morgan Stanley assumed coverage on shares of Ferguson in a research report on Monday, February 3rd. They set an “overweight” rating and a $204.00 target price for the company. Three analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat.com, Ferguson currently has an average rating of “Moderate Buy” and an average price target of $201.64.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FERG. Manchester Capital Management LLC increased its stake in shares of Ferguson by 906.7% in the 4th quarter. Manchester Capital Management LLC now owns 151 shares of the company’s stock valued at $26,000 after purchasing an additional 136 shares in the last quarter. True Wealth Design LLC increased its position in shares of Ferguson by 1,350.0% in the third quarter. True Wealth Design LLC now owns 145 shares of the company’s stock valued at $29,000 after buying an additional 135 shares in the last quarter. LGT Financial Advisors LLC raised its stake in shares of Ferguson by 106.3% during the 4th quarter. LGT Financial Advisors LLC now owns 198 shares of the company’s stock worth $34,000 after buying an additional 102 shares during the period. Berbice Capital Management LLC purchased a new position in shares of Ferguson during the 4th quarter valued at approximately $35,000. Finally, Peterson Financial Group Inc. acquired a new stake in Ferguson in the 3rd quarter valued at $39,000. Hedge funds and other institutional investors own 81.98% of the company’s stock.

Ferguson Stock Performance

The company has a current ratio of 1.68, a quick ratio of 0.91 and a debt-to-equity ratio of 0.83. The firm’s fifty day moving average is $176.55 and its 200 day moving average is $190.86. The company has a market cap of $31.18 billion, a PE ratio of 18.72, a price-to-earnings-growth ratio of 1.69 and a beta of 1.28.

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.