Ferguson (NYSE:FERG) Shares Break Above Two Hundred Day Moving Average – Here’s Why

Ferguson plc (NYSE:FERG)’s share price crossed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $237.33 and traded as high as $240.59. Ferguson shares last traded at $240.3970, with a volume of 951,355 shares traded.

Key Headlines Impacting Ferguson

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: Citigroup upgraded Ferguson’s stock rating, adding a bullish analyst catalyst for Ferguson plc. The upgrade could support the shares by signaling improved expectations for earnings, valuation, or industry conditions. Ferguson Stock Rating Upgraded by Citigroup
• Neutral Sentiment: The other headlines concern people or organizations named Ferguson—including Sarah Ferguson, Washington Governor Ferguson, a municipal oversight case, and football player Jake Ferguson. They do not relate to Ferguson plc or appear likely to affect FERG’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on FERG shares. Morgan Stanley lifted their price target on shares of Ferguson from $290.00 to $295.00 in a report on Wednesday, August 19th. Wolfe Research began coverage on shares of Ferguson in a research report on Tuesday, September 15th. They issued a “peer perform” rating for the company. Oppenheimer boosted their price target on shares of Ferguson from $280.00 to $288.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. Robert W. Baird upped their price target on shares of Ferguson from $285.00 to $288.00 and gave the company an “outperform” rating in a report on Tuesday, August 11th. Finally, Zelman & Associates upgraded Ferguson from a “hold” rating to an “outperform” rating and set a $285.00 price objective on the stock in a research report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $287.44.

Ferguson Stock Down 1.0%

The company’s fifty day moving average is $225.00 and its 200-day moving average is $237.31. The company has a market capitalization of $46.05 billion, a PE ratio of 27.97, a price-to-earnings-growth ratio of 1.73 and a beta of 1.14. The company has a debt-to-equity ratio of 0.72, a quick ratio of 0.93 and a current ratio of 1.73.

Ferguson (NYSE:FERG) last issued its quarterly earnings data on Monday, August 10th. The company reported $3.39 EPS for the quarter, topping analysts’ consensus estimates of $3.23 by $0.16. Ferguson had a net margin of 6.82% and a return on equity of 37.24%. The business had revenue of $8.75 billion during the quarter. As a group, analysts predict that Ferguson plc will post 11.42 EPS for the current fiscal year.

Ferguson Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 7th. Investors of record on Friday, August 21st were paid a $0.89 dividend. This represents a $3.56 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Friday, August 21st. Ferguson’s payout ratio is currently 41.83%.

Insider Buying and Selling

In related news, COO William Thees, Jr. sold 353 shares of the firm’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $224.50, for a total value of $79,248.50. Following the transaction, the chief operating officer directly owned 31,745 shares of the company’s stock, valued at approximately $7,126,752.50. This trade represents a 1.10% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Allison Stirrup sold 922 shares of the business’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $225.00, for a total transaction of $207,450.00. Following the transaction, the insider owned 7,038 shares in the company, valued at $1,583,550. The trade was a 11.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 38,808 shares of company stock worth $8,571,587 in the last 90 days. 0.15% of the stock is owned by insiders.

Hedge Funds Weigh In On Ferguson

A number of institutional investors and hedge funds have recently made changes to their positions in FERG. Wedbush Securities Inc. increased its position in Ferguson by 4.3% during the second quarter. Wedbush Securities Inc. now owns 1,197 shares of the company’s stock worth $284,000 after buying an additional 49 shares in the last quarter. L2 Asset Management LLC increased its position in Ferguson by 5.2% during the 2nd quarter. L2 Asset Management LLC now owns 1,109 shares of the company’s stock worth $263,000 after purchasing an additional 55 shares in the last quarter. Cidel Asset Management Inc. raised its stake in Ferguson by 3.8% in the 2nd quarter. Cidel Asset Management Inc. now owns 1,541 shares of the company’s stock valued at $366,000 after purchasing an additional 56 shares during the last quarter. Virtue Capital Management LLC lifted its holdings in Ferguson by 4.6% in the 3rd quarter. Virtue Capital Management LLC now owns 1,324 shares of the company’s stock valued at $295,000 after purchasing an additional 58 shares in the last quarter. Finally, Natural Investments LLC boosted its stake in shares of Ferguson by 6.9% during the 2nd quarter. Natural Investments LLC now owns 944 shares of the company’s stock worth $224,000 after purchasing an additional 61 shares during the last quarter. 81.98% of the stock is owned by institutional investors and hedge funds.

Ferguson Company Profile

Ferguson plc (NYSE: FERG) is a value-added distributor of plumbing, heating, ventilation and air conditioning (HVAC), waterworks, fire protection and other building and industrial products. The company serves professional contractors, municipalities, commercial and industrial businesses, and other customers through a network of branches, distribution centers, showrooms and digital platforms.

Its product offering includes pipes, valves, fittings, plumbing fixtures, water and wastewater infrastructure products, HVAC equipment, fire protection systems, industrial supplies and related tools and services.