Baird Financial Group Inc. has reduced its stake in Ferguson plc, selling 15,275 shares during the second quarter of 2023. According to the firm’s latest 13F filing with the Securities and Exchange Commission, Baird Financial now holds a total of 230,204 shares, which accounts for approximately 0.12% of Ferguson’s total market value of $50,127,000.
Several other institutional investors have also made adjustments to their positions in Ferguson. Smithfield Trust Co increased its holdings by 3.5%, owning 1,342 shares valued at $291,000 after acquiring an additional 46 shares. Northwestern Mutual Wealth Management Co. raised its stake by 7.5%, now holding 690 shares worth $150,000 following a purchase of 48 shares. Hemington Wealth Management significantly boosted its holdings by 51.5% during the same period, resulting in ownership of 153 shares valued at $33,000.
Other notable adjustments include US Bancorp DE, which increased its position by 0.8%, now owning 7,394 shares valued at $1,185,000, and Compound Planning Inc., which raised its stake by 4.6%, holding 1,386 shares worth $222,000. Currently, institutional investors and hedge funds own approximately 81.98% of Ferguson’s stock.
Analysts Adjust Price Targets
Wall Street analysts have recently provided updates on Ferguson’s stock. Robert W. Baird raised its price target from $260.00 to $262.00, while maintaining an “outperform” rating as of September 17, 2023. Truist Financial also increased its target from $240.00 to $260.00 with a “buy” rating. On the other hand, Zacks Research upgraded Ferguson to a “hold” rating on August 8, 2023. Jefferies Financial Group lifted its price objective from $268.00 to $289.00, maintaining a “buy” rating in a report released on Tuesday.
Oppenheimer increased its target price from $235.00 to $255.00, also giving the company an “outperform” rating. Overall, two analysts have rated the stock as a Strong Buy, twelve have assigned a Buy rating, and seven have given a Hold rating. According to data from MarketBeat, Ferguson currently holds a consensus rating of “Moderate Buy” with a target price of $246.71.
Ferguson’s stock opened at $249.61 on Friday, reflecting a 1.3% decline. The company has experienced a price range over the past year, with a low of $146.00 and a high of $256.93. Ferguson’s financial metrics include a debt-to-equity ratio of 0.64, a quick ratio of 0.94, and a current ratio of 1.68. The market capitalization stands at $48.92 billion, with a price-to-earnings ratio of 26.72.
Recent Earnings and Dividend Announcements
On September 16, 2023, Ferguson announced its quarterly earnings, reporting an earnings per share (EPS) of $3.48, surpassing the consensus estimate of $3.00 by $0.48. The company’s return on equity was noted at 35.21% with a net margin of 6.03%. Revenue for the quarter reached $8.50 billion, exceeding analyst expectations of $8.44 billion.
Additionally, Ferguson declared a quarterly dividend of $0.83, paid on November 7, 2023, to stockholders of record as of September 26, 2023. This represents an annualized dividend of $3.32 and a yield of 1.3%, with a payout ratio currently at 35.55%.
Insider trading activity has also been notable. On October 14, 2023, insider James A. Paisley sold 3,000 shares at an average price of $236.97, totaling $710,910. Following this transaction, Paisley retains 2,211 shares valued at approximately $523,940.67. Chief Accounting Officer Richard Winckler also sold 1,034 shares on the same date for $240,611.80, reducing his holdings by 41.49%.
In total, insiders have sold 29,264 shares of Ferguson stock worth $6,853,349 in the last quarter, indicating that 0.18% of the stock is held by corporate insiders.
Ferguson Enterprises Inc. operates primarily in the plumbing and heating products sector, serving both residential and non-residential customers throughout North America. The company’s expertise extends to infrastructure, plumbing, appliances, fire and fabrication, as well as heating, ventilation, and air conditioning (HVAC) solutions.
