Ferguson (NASDAQ:FERG) Rating Increased to Buy at Bank of America

Bank of America upgraded shares of Ferguson (NASDAQ:FERG) from an underperform rating to a buy rating in a research note issued to investors on Wednesday, Marketbeat reports. The brokerage currently has $225.00 price target on the stock, up from their prior price target of $185.00.

Several other analysts have also issued reports on the stock. Oppenheimer began coverage on shares of Ferguson in a research note on Wednesday, October 23rd. They issued an “outperform” rating and a $234.00 target price for the company. Wells Fargo & Company reduced their price objective on shares of Ferguson from $220.00 to $215.00 and set an “overweight” rating for the company in a research report on Tuesday, December 17th. Barclays dropped their target price on shares of Ferguson from $245.00 to $234.00 and set an “overweight” rating on the stock in a research report on Thursday, December 12th. Robert W. Baird reduced their target price on Ferguson from $230.00 to $225.00 and set an “outperform” rating for the company in a report on Wednesday, December 11th. Finally, Citigroup dropped their price target on Ferguson from $221.00 to $189.00 and set a “neutral” rating on the stock in a report on Monday. Two investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $222.40.

Ferguson Price Performance

Shares of NASDAQ FERG opened at $172.14 on Wednesday. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.00 and a current ratio of 1.80. The firm’s 50-day simple moving average is $195.71 and its 200 day simple moving average is $199.07. The stock has a market cap of $34.42 billion, a price-to-earnings ratio of 20.67, a PEG ratio of 1.90 and a beta of 1.24. Ferguson has a fifty-two week low of $170.93 and a fifty-two week high of $225.63.

Ferguson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, February 6th. Shareholders of record on Friday, December 20th will be given a dividend of $0.83 per share. The ex-dividend date is Friday, December 20th. This represents a $3.32 annualized dividend and a dividend yield of 1.93%. This is an increase from Ferguson’s previous quarterly dividend of $0.79. Ferguson’s dividend payout ratio is currently 39.86%.

Insider Buying and Selling

In related news, VP Michael Jacobs sold 2,624 shares of Ferguson stock in a transaction on Monday, October 14th. The stock was sold at an average price of $200.96, for a total transaction of $527,319.04. Following the completion of the sale, the vice president now owns 1,116 shares of the company’s stock, valued at approximately $224,271.36. This trade represents a 70.16 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Garland Williams sold 1,118 shares of the company’s stock in a transaction dated Monday, October 14th. The stock was sold at an average price of $201.22, for a total value of $224,963.96. Following the completion of the transaction, the senior vice president now owns 1,882 shares in the company, valued at $378,696.04. This represents a 37.27 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 12,313 shares of company stock valued at $2,477,901. Corporate insiders own 0.16% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Acadian Asset Management LLC increased its holdings in shares of Ferguson by 43.3% in the 2nd quarter. Acadian Asset Management LLC now owns 11,145 shares of the company’s stock worth $2,155,000 after buying an additional 3,366 shares during the last quarter. Choreo LLC purchased a new stake in Ferguson during the second quarter valued at about $1,341,000. LGT Group Foundation lifted its stake in Ferguson by 24.2% during the second quarter. LGT Group Foundation now owns 1,404 shares of the company’s stock worth $272,000 after purchasing an additional 274 shares during the last quarter. Coldstream Capital Management Inc. boosted its holdings in shares of Ferguson by 71.1% in the 2nd quarter. Coldstream Capital Management Inc. now owns 3,833 shares of the company’s stock worth $742,000 after purchasing an additional 1,593 shares in the last quarter. Finally, Headlands Technologies LLC bought a new position in shares of Ferguson during the 2nd quarter valued at about $490,000. Hedge funds and other institutional investors own 81.98% of the company’s stock.

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.