Ferguson plc (NASDAQ:FERG) Raises Dividend to $0.83 Per Share

Ferguson plc (NASDAQ:FERG) declared a quarterly dividend on Tuesday, December 10th,Wall Street Journal reports. Stockholders of record on Friday, December 20th will be paid a dividend of 0.83 per share on Thursday, February 6th. This represents a $3.32 annualized dividend and a dividend yield of 1.71%. The ex-dividend date of this dividend is Friday, December 20th. This is a boost from Ferguson’s previous quarterly dividend of $0.79.

Ferguson has a dividend payout ratio of 29.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Ferguson to earn $11.07 per share next year, which means the company should continue to be able to cover its $3.16 annual dividend with an expected future payout ratio of 28.5%.

Ferguson Stock Down 0.6 %

Shares of FERG traded down $1.25 during mid-day trading on Wednesday, hitting $193.69. 3,081,229 shares of the company’s stock were exchanged, compared to its average volume of 1,309,352. The firm has a fifty day moving average of $203.96 and a two-hundred day moving average of $202.61. Ferguson has a twelve month low of $180.98 and a twelve month high of $225.63. The stock has a market cap of $38.88 billion, a price-to-earnings ratio of 22.68, a P/E/G ratio of 2.11 and a beta of 1.21. The company has a quick ratio of 1.00, a current ratio of 1.80 and a debt-to-equity ratio of 0.89.

Ferguson (NASDAQ:FERG) last posted its earnings results on Tuesday, September 17th. The company reported $2.98 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.86 by $0.12. Ferguson had a net margin of 5.85% and a return on equity of 36.53%. The business had revenue of $7.95 billion for the quarter, compared to analyst estimates of $8.01 billion. During the same period last year, the business posted $2.77 EPS. Ferguson’s revenue was up 1.4% compared to the same quarter last year. On average, sell-side analysts forecast that Ferguson will post 9.77 earnings per share for the current year.

Insider Transactions at Ferguson

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

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the stock. UBS Group raised their target price on shares of Ferguson from $228.00 to $236.00 and gave the company a “buy” rating in a research note on Wednesday, September 18th. Royal Bank of Canada reiterated an “outperform” rating and issued a $219.00 target price on shares of Ferguson in a research note on Wednesday. Oppenheimer initiated coverage on shares of Ferguson in a research note on Wednesday, October 23rd. They issued an “outperform” rating and a $234.00 target price on the stock. Barclays increased their price target on shares of Ferguson from $229.00 to $245.00 and gave the company an “overweight” rating in a report on Wednesday, September 18th. Finally, Berenberg Bank increased their price target on shares of Ferguson from $224.00 to $240.00 and gave the company a “buy” rating in a report on Wednesday. Two investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat, Ferguson has an average rating of “Moderate Buy” and an average target price of $232.22.

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.