Insider Selling: Ferguson (NYSE:FERG) Insider Sells $405,543.96 in Stock

Ferguson plc (NYSE:FERG) insider Ian Graham sold 1,854 shares of the company’s stock in a transaction on Monday, October 12th. The shares were sold at an average price of $218.74, for a total transaction of $405,543.96. Following the completion of the sale, the insider directly owned 11,511 shares in the company, valued at $2,517,916.14. This trade represents a 13.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Ferguson Stock Up 1.2%

NYSE:FERG opened at $231.42 on Friday. The firm has a market capitalization of $44.77 billion, a P/E ratio of 27.19, a PEG ratio of 1.65 and a beta of 1.14. Ferguson plc has a 1-year low of $212.13 and a 1-year high of $271.64. The company’s fifty day moving average price is $228.04 and its 200-day moving average price is $234.52. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.73 and a quick ratio of 0.93.

Ferguson (NYSE:FERG) last issued its earnings results on Monday, August 10th. The company reported $3.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.23 by $0.16. The firm had revenue of $8.75 billion during the quarter. Ferguson had a net margin of 6.82% and a return on equity of 37.24%. As a group, equities research analysts anticipate that Ferguson plc will post 11.42 EPS for the current year.

Ferguson Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 7th. Shareholders of record on Friday, August 21st were given a dividend of $0.89 per share. This represents a $3.56 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Friday, August 21st. Ferguson’s dividend payout ratio (DPR) is currently 41.83%.

Analyst Upgrades and Downgrades

FERG has been the subject of a number of recent research reports. Royal Bank Of Canada reduced their price objective on Ferguson from $290.00 to $286.00 and set an “outperform” rating for the company in a research note on Wednesday, October 7th. Wolfe Research assumed coverage on Ferguson in a report on Tuesday, September 15th. They issued a “peer perform” rating for the company. Oppenheimer upped their target price on Ferguson from $280.00 to $288.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. Barclays raised their target price on Ferguson from $297.00 to $313.00 and gave the stock an “overweight” rating in a report on Tuesday, August 11th. Finally, Melius Research began coverage on Ferguson in a report on Tuesday, October 6th. They set a “hold” rating and a $252.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $285.78.

Institutional Trading of Ferguson

Hedge funds have recently added to or reduced their stakes in the company. Jupiter Topco LLC acquired a new stake in Ferguson during the second quarter valued at $1,789,368,000. Janus Henderson Group PLC increased its holdings in Ferguson by 7.8% in the fourth quarter. Janus Henderson Group PLC now owns 5,981,791 shares of the company’s stock valued at $1,331,621,000 after buying an additional 434,650 shares in the last quarter. Man Group plc increased its holdings in Ferguson by 613.8% in the second quarter. Man Group plc now owns 401,395 shares of the company’s stock valued at $95,263,000 after buying an additional 345,165 shares in the last quarter. Bank of America Corp DE increased its holdings in Ferguson by 43.6% in the first quarter. Bank of America Corp DE now owns 1,029,896 shares of the company’s stock valued at $240,234,000 after buying an additional 312,756 shares in the last quarter. Finally, Pictet Asset Management Holding SA raised its position in shares of Ferguson by 9.2% in the first quarter. Pictet Asset Management Holding SA now owns 2,868,181 shares of the company’s stock worth $668,809,000 after acquiring an additional 240,666 shares during the period. 81.98% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Ferguson

Here are the key news stories impacting Ferguson this week:

• Positive Sentiment: Ferguson’s most recent quarterly results exceeded expectations, with earnings per share of $3.39 versus the $3.23 consensus estimate. Analysts maintain a “Moderate Buy” consensus and an average price target of $285.78, well above recent trading levels, which may support investor confidence.
• Positive Sentiment: The company continues to offer shareholder returns through its quarterly dividend, equivalent to $3.56 annually and a yield of approximately 1.6%. Ferguson also retains strong profitability, including a reported 37.24% return on equity.
• Neutral Sentiment: Several Ferguson executives and insiders reported stock sales during the week, including COO William Thees Jr., VP Anthony Camposano, Ian Graham, Jake Schlicher, Allison Stirrup and Kevin Murphy. The reported transactions involved thousands of shares and several million dollars in aggregate proceeds. Ferguson insider trading report
• Neutral Sentiment: All of the disclosed sales were executed under pre-arranged Rule 10b5-1 trading plans. That reduces their significance as a signal that management expects Ferguson’s business or valuation to weaken, particularly because the sellers retained substantial positions.
• Negative Sentiment: The concentration of insider selling could nevertheless create modest near-term pressure on sentiment and may limit the stock’s upside, especially with Ferguson trading below its 200-day moving average.

About Ferguson

Ferguson plc (NYSE: FERG) is a North American distributor of plumbing and heating products, supplying professional customers across the residential, commercial, industrial and infrastructure markets. The company serves contractors, builders, remodelers, municipalities, industrial businesses and other trade professionals through branch locations, distribution centers and digital ordering platforms.

Its product offerings include plumbing supplies and fixtures, heating and cooling equipment, water and wastewater products, fire protection systems, waterworks materials, industrial piping and related maintenance, repair and operating supplies.