Magnetar Financial LLC Purchases New Stake in Ferguson plc (NASDAQ:FERG)

Magnetar Financial LLC purchased a new stake in Ferguson plc (NASDAQ:FERG) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 24,110 shares of the company’s stock, valued at approximately $4,669,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Daiwa Securities Group Inc. raised its holdings in Ferguson by 80.1% in the first quarter. Daiwa Securities Group Inc. now owns 32,811 shares of the company’s stock valued at $7,166,000 after acquiring an additional 14,590 shares in the last quarter. Meeder Asset Management Inc. increased its stake in Ferguson by 14.5% during the first quarter. Meeder Asset Management Inc. now owns 75,505 shares of the company’s stock valued at $16,493,000 after purchasing an additional 9,562 shares during the last quarter. Manning & Napier Advisors LLC bought a new stake in Ferguson during the second quarter valued at $2,834,000. Lighthouse Investment Partners LLC increased its stake in Ferguson by 20.8% during the fourth quarter. Lighthouse Investment Partners LLC now owns 60,406 shares of the company’s stock valued at $11,663,000 after purchasing an additional 10,406 shares during the last quarter. Finally, Duality Advisers LP bought a new stake in Ferguson during the first quarter valued at $5,016,000. 81.98% of the stock is owned by institutional investors and hedge funds.

Ferguson Stock Performance

Shares of FERG opened at $196.52 on Monday. The firm has a 50-day moving average price of $204.73 and a 200 day moving average price of $206.89. The firm has a market capitalization of $39.69 billion, a PE ratio of 21.48, a P/E/G ratio of 6.13 and a beta of 1.21. The company has a quick ratio of 0.94, a current ratio of 1.68 and a debt-to-equity ratio of 0.64. Ferguson plc has a 52-week low of $147.62 and a 52-week high of $225.63.

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

Ferguson announced that its Board of Directors has authorized a share buyback plan on Tuesday, June 4th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to repurchase up to 2.6% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s management believes its shares are undervalued.

Ferguson Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 8th. Shareholders of record on Friday, September 27th will be issued a $0.79 dividend. This represents a $3.16 dividend on an annualized basis and a yield of 1.61%. The ex-dividend date is Friday, September 27th. Ferguson’s payout ratio is 34.54%.

Analyst Upgrades and Downgrades

Several research firms have weighed in on FERG. Royal Bank of Canada boosted their target price on shares of Ferguson from $211.00 to $219.00 and gave the company an “outperform” rating in a research note on Wednesday, September 18th. Barclays upped their price target on shares of Ferguson from $229.00 to $245.00 and gave the stock an “overweight” rating in a research report on Wednesday, September 18th. UBS Group upped their price target on shares of Ferguson from $228.00 to $236.00 and gave the stock a “buy” rating in a research report on Wednesday, September 18th. Jefferies Financial Group upped their price target on shares of Ferguson from $238.00 to $250.00 and gave the stock a “buy” rating in a research report on Wednesday, July 17th. Finally, Robert W. Baird upped their price target on shares of Ferguson from $222.00 to $225.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 18th. One analyst has rated the stock with a sell rating, two have given a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $231.57.

About Ferguson

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.