Ferguson plc (NASDAQ:FERG) Plans $0.79 Quarterly Dividend

Ferguson plc (NASDAQ:FERG) announced a quarterly dividend on Tuesday, September 17th, Wall Street Journal reports. Investors of record on Friday, September 27th will be given a dividend of 0.79 per share on Friday, November 8th. This represents a $3.16 dividend on an annualized basis and a yield of 1.58%. The ex-dividend date is Friday, September 27th.

Ferguson has a dividend payout ratio of 29.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect Ferguson to earn $11.06 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 28.6%.

Ferguson Stock Down 0.8 %

FERG opened at $199.49 on Thursday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.94 and a current ratio of 1.68. The company has a market cap of $40.29 billion, a price-to-earnings ratio of 20.75, a PEG ratio of 3.36 and a beta of 1.21. Ferguson has a one year low of $147.62 and a one year high of $225.63. The business’s fifty day moving average is $204.09 and its two-hundred day moving average is $206.84.

Ferguson (NASDAQ:FERG) last issued its quarterly earnings data on Tuesday, September 17th. The company reported $2.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.86 by $0.12. Ferguson had a return on equity of 37.03% and a net margin of 5.85%. The firm had revenue of $7.95 billion during the quarter, compared to the consensus estimate of $8.01 billion. During the same period in the previous year, the firm posted $2.77 EPS. The company’s quarterly revenue was up 1.4% compared to the same quarter last year. Analysts anticipate that Ferguson will post 9.86 EPS for the current fiscal year.

Ferguson declared that its board has approved a stock buyback plan on Tuesday, June 4th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to purchase up to 2.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on FERG shares. Jefferies Financial Group increased their price objective on shares of Ferguson from $238.00 to $250.00 and gave the stock a “buy” rating in a report on Wednesday, July 17th. UBS Group lifted their target price on Ferguson from $228.00 to $236.00 and gave the company a “buy” rating in a report on Wednesday, September 18th. Wells Fargo & Company dropped their target price on shares of Ferguson from $250.00 to $225.00 and set an “overweight” rating for the company in a research report on Wednesday, September 18th. Royal Bank of Canada lifted their price target on shares of Ferguson from $211.00 to $219.00 and gave the company an “outperform” rating in a research report on Wednesday, September 18th. Finally, Barclays upped their price target on shares of Ferguson from $229.00 to $245.00 and gave the stock an “overweight” rating in a research report on Wednesday, September 18th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $231.57.

Ferguson Company Profile

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.