Ferguson plc (NASDAQ:FERG) Declares Quarterly Dividend of $0.79

Ferguson plc (NASDAQ:FERG) announced a quarterly dividend on Wednesday, September 18th, Wall Street Journal reports. Shareholders of record on Friday, September 27th will be paid a dividend of 0.79 per share on Friday, November 8th. This represents a $3.16 annualized dividend and a yield of 1.54%. The ex-dividend date is Friday, September 27th.

Ferguson has a dividend payout ratio of 29.7% meaning its dividend is sufficiently covered by earnings. Analysts expect Ferguson to earn $10.28 per share next year, which means the company should continue to be able to cover its $3.16 annual dividend with an expected future payout ratio of 30.7%.

Ferguson Price Performance

Ferguson stock traded down $1.54 during midday trading on Wednesday, hitting $205.52. The company’s stock had a trading volume of 2,093,853 shares, compared to its average volume of 1,180,238. The company has a quick ratio of 0.94, a current ratio of 1.68 and a debt-to-equity ratio of 0.64. The stock’s 50-day moving average price is $204.35 and its 200-day moving average price is $206.95. Ferguson has a 12 month low of $147.62 and a 12 month high of $225.63. The company has a market capitalization of $41.50 billion, a PE ratio of 22.46, a price-to-earnings-growth ratio of 6.13 and a beta of 1.21.

Ferguson (NASDAQ:FERG) last issued its quarterly earnings results on Tuesday, September 17th. The company reported $2.98 EPS for the quarter, topping the consensus estimate of $2.86 by $0.12. Ferguson had a net margin of 6.33% and a return on equity of 36.89%. The firm had revenue of $7.95 billion for the quarter, compared to analysts’ expectations of $8.01 billion. During the same period in the previous year, the business earned $2.77 earnings per share. Ferguson’s revenue for the quarter was up 1.4% compared to the same quarter last year. Analysts anticipate that Ferguson will post 9.63 earnings per share for the current fiscal year.

Ferguson announced that its board has initiated a stock buyback program on Tuesday, June 4th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 2.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

FERG has been the topic of several recent analyst reports. Citigroup boosted their price objective on Ferguson from $203.00 to $221.00 and gave the stock a “neutral” rating in a report on Wednesday. UBS Group lifted their target price on Ferguson from $228.00 to $236.00 and gave the company a “buy” rating in a research note on Wednesday. Wells Fargo & Company lowered their target price on Ferguson from $250.00 to $225.00 and set an “overweight” rating on the stock in a research note on Wednesday. Royal Bank of Canada lifted their target price on Ferguson from $211.00 to $219.00 and gave the company an “outperform” rating in a research note on Wednesday. Finally, Barclays lifted their target price on Ferguson from $229.00 to $245.00 and gave the company an “overweight” rating in a research note on Wednesday. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $231.57.

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.