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

Ferguson plc (NASDAQ:FERG)’s stock price 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 traded.

The company reported $1.52 EPS for the quarter, missing analysts’ consensus estimates of $1.58 by ($0.06). The company had revenue of $6.87 billion during 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 company’s revenue was up 3.0% on a year-over-year basis. During the same period in the prior year, the company posted $1.74 earnings per share.

Analysts Set New Price Targets

Several equities analysts have recently commented on FERG shares. Berenberg Bank boosted their target price on shares of Ferguson from $224.00 to $240.00 and gave the stock a “buy” rating in a report on Wednesday, December 11th. Royal Bank of Canada reissued an “outperform” rating and issued a $219.00 target price on shares of Ferguson in a report on Wednesday, December 11th. Barclays decreased their target price on shares of Ferguson from $234.00 to $211.00 and set an “overweight” rating on the stock in a research report on Thursday, January 16th. UBS Group reiterated a “neutral” rating and issued a $193.00 target price (down previously from $230.00) on shares of Ferguson in a report on Wednesday, January 8th. Finally, Bank of America upgraded Ferguson from an “underperform” rating to a “buy” rating and raised their price target for the stock from $185.00 to $225.00 in a research report on Wednesday, January 8th. Three analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat.com, Ferguson presently has an average rating of “Moderate Buy” and a consensus target price of $217.73.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Manchester Capital Management LLC increased its stake in shares of Ferguson by 906.7% during the fourth quarter. Manchester Capital Management LLC now owns 151 shares of the company’s stock valued at $26,000 after acquiring an additional 136 shares during the period. True Wealth Design LLC increased its position in shares of Ferguson by 1,350.0% during the 3rd quarter. True Wealth Design LLC now owns 145 shares of the company’s stock valued at $29,000 after purchasing an additional 135 shares during the period. LGT Financial Advisors LLC raised its stake in shares of Ferguson by 106.3% in 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 in the last quarter. Berbice Capital Management LLC acquired a new stake in shares of Ferguson in the fourth quarter valued at $35,000. Finally, Peterson Financial Group Inc. bought a new position in Ferguson during the third quarter valued at about $39,000. 81.98% of the stock is owned by institutional investors and hedge funds.

Ferguson Stock Performance

The company’s 50-day moving average price is $176.90 and its two-hundred day moving average price is $191.11. The company has a market cap of $31.50 billion, a P/E ratio of 18.91, a price-to-earnings-growth ratio of 1.69 and a beta of 1.28. The company has a current ratio of 1.68, a quick ratio of 0.91 and a debt-to-equity ratio of 0.83.

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.