Ferguson (NASDAQ:FERG) Shares Gap Down Following Weak Earnings

Ferguson plc (NASDAQ:FERG) gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $165.56, but opened at $155.88. Ferguson shares last traded at $158.64, with a volume of 516,674 shares.

The company reported $1.52 EPS for the quarter, missing the consensus estimate of $1.58 by ($0.06). The firm had revenue of $6.87 billion during the quarter, compared to analyst estimates of $6.76 billion. Ferguson had a net margin of 5.68% and a return on equity of 34.63%. The firm’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.74 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. UBS Group reiterated a “neutral” rating and set a $193.00 price target (down previously from $230.00) on shares of Ferguson in a research report on Wednesday, January 8th. Barclays lowered their price objective on shares of Ferguson from $234.00 to $211.00 and set an “overweight” rating for the company in a research report on Thursday, January 16th. Berenberg Bank raised their price target on Ferguson from $224.00 to $240.00 and gave the stock a “buy” rating in a research report on Wednesday, December 11th. Zelman & Associates lowered Ferguson from a “strong-buy” rating to a “hold” rating in a research report on Friday, January 17th. Finally, Royal Bank of Canada reiterated an “outperform” rating and issued a $219.00 price target on shares of Ferguson in a report on Wednesday, December 11th. Three analysts have rated the stock with a hold rating and nine have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $217.73.

Hedge Funds Weigh In On Ferguson

A number of hedge funds have recently made changes to their positions in the stock. Manchester Capital Management LLC grew its position in Ferguson by 906.7% in the 4th quarter. Manchester Capital Management LLC now owns 151 shares of the company’s stock valued at $26,000 after purchasing an additional 136 shares during the period. True Wealth Design LLC raised its position in Ferguson by 1,350.0% in the third quarter. True Wealth Design LLC now owns 145 shares of the company’s stock worth $29,000 after acquiring an additional 135 shares during the period. LGT Financial Advisors LLC lifted its stake in Ferguson by 106.3% in the fourth quarter. LGT Financial Advisors LLC now owns 198 shares of the company’s stock valued at $34,000 after purchasing an additional 102 shares during the last quarter. Berbice Capital Management LLC purchased a new stake in Ferguson during the fourth quarter valued at about $35,000. Finally, Capital Performance Advisors LLP bought a new position in shares of Ferguson in the third quarter worth $37,000. 81.98% of the stock is currently owned by institutional investors.

Ferguson Price Performance

The business’s 50-day moving average price is $177.22 and its 200 day moving average price is $191.51. The company has a market capitalization of $31.83 billion, a P/E ratio of 19.11, a price-to-earnings-growth ratio of 1.69 and a beta of 1.28. The company has a quick ratio of 0.91, a current ratio of 1.68 and a debt-to-equity ratio of 0.83.

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.