Short Interest in Ferguson plc (NYSE:FERG) Increases By 78.9%

Ferguson plc (NYSE:FERG) saw a large increase in short interest during the month of August. As of August 14th, there was short interest totaling 4,996,064 shares, an increase of 78.9% from the July 30th total of 2,792,984 shares. Based on an average trading volume of 7,452,362 shares, the short-interest ratio is currently 0.7 days. Approximately 2.6% of the company’s stock are sold short.

Institutional Investors Weigh In On Ferguson

Large investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Ferguson by 23.9% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,262 shares of the company’s stock worth $2,445,000 after buying an additional 2,940 shares during the last quarter. Caxton Associates LLP purchased a new stake in Ferguson during the first quarter valued at approximately $310,000. Focus Partners Wealth raised its position in Ferguson by 22.7% in the first quarter. Focus Partners Wealth now owns 3,140 shares of the company’s stock worth $503,000 after acquiring an additional 581 shares during the period. Sivia Capital Partners LLC bought a new position in Ferguson in the second quarter worth approximately $257,000. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in shares of Ferguson by 7.5% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 690 shares of the company’s stock worth $150,000 after acquiring an additional 48 shares during the last quarter. 81.98% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several brokerages have commented on FERG. Zelman & Associates upgraded Ferguson from a “hold” rating to an “outperform” rating and set a $285.00 target price on the stock in a research note on Friday, July 17th. Royal Bank Of Canada boosted their price target on Ferguson from $281.00 to $290.00 and gave the stock an “outperform” rating in a research note on Tuesday, August 11th. The Goldman Sachs Group cut Ferguson from a “buy” rating to a “neutral” rating and dropped their price objective for the company from $315.00 to $265.00 in a research report on Monday, July 6th. Barclays lifted their price objective on Ferguson from $297.00 to $313.00 and gave the stock an “overweight” rating in a report on Tuesday, August 11th. Finally, Robert W. Baird boosted their target price on Ferguson from $285.00 to $288.00 and gave the stock an “outperform” rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $285.93.

Ferguson Stock Performance

NYSE:FERG traded down $4.74 during trading hours on Friday, reaching $228.52. The company had a trading volume of 1,000,722 shares, compared to its average volume of 4,434,699. The firm has a market cap of $44.21 billion, a price-to-earnings ratio of 26.85, a PEG ratio of 1.59 and a beta of 1.14. The company has a current ratio of 1.73, a quick ratio of 0.93 and a debt-to-equity ratio of 0.72. The firm’s 50 day moving average price is $236.93 and its 200-day moving average price is $239.47. Ferguson has a 52 week low of $207.64 and a 52 week high of $271.64.

Ferguson (NYSE:FERG) last released its quarterly earnings results on Monday, August 10th. The company reported $3.39 earnings per share for the quarter, beating the consensus estimate of $3.23 by $0.16. The firm had revenue of $8.75 billion for the quarter. Ferguson had a return on equity of 37.24% and a net margin of 6.82%. On average, analysts forecast that Ferguson will post 11.42 EPS for the current year.

Ferguson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 7th. Shareholders of record on Friday, August 21st will be issued a $0.89 dividend. The ex-dividend date of this dividend is Friday, August 21st. This represents a $3.56 dividend on an annualized basis and a yield of 1.6%. Ferguson’s dividend payout ratio is currently 41.83%.

Ferguson declared that its board has authorized a share repurchase plan on Tuesday, May 5th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 3.9% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

About Ferguson

Ferguson (NYSE: FERG) is a multinational distributor specializing in plumbing and heating products and related building supplies, serving professional contractors, builders and industrial customers. The company supplies a broad range of products used in residential, commercial and infrastructure projects, including pipes and fittings, valves and controls, HVAC equipment, waterworks materials, plumbing fixtures, pumps and accessories, as well as complementary electrical and specialty product lines.

Ferguson operates a network of branches and distribution centers that provide inventory, logistics and value-added services to trade customers.