Richard Winckler, the Chief Accounting Officer at Ferguson Enterprises Inc. (NYSE:FERG), recently executed several transactions involving the company's common stock. According to a Form 4 filing with the SEC, Winckler sold 1,325 shares on October 14 at an average price of $201.75 per share, totaling approximately $267,318.
In addition to the sale, Winckler acquired 1,990 shares of common stock on the same day, which were received as part of a performance share plan, and 458 shares through a restricted stock unit grant on October 15. These acquisitions were made at no cost and reflect part of the company's compensation plans.
Furthermore, Winckler executed options to acquire 426 shares, which were settled as part of a conditional share award. Following these transactions, Winckler holds 1,458 shares directly.
In other recent news, Ferguson Plc outperformed expectations with its fourth-quarter earnings, reporting a modest 1.4% year-over-year increase in revenue to $7.9 billion. The company's adjusted operating profit rose by 5.3% to $857 million, while adjusted diluted earnings per share grew by 7.6% to $2.98. For the fiscal year, Ferguson achieved total revenue of $29.6 billion and generated a robust $1.9 billion in operating cash flow. Amidst these developments, several analyst firms have updated their outlooks on Ferguson. Citi has increased its price target to $221 while maintaining a Neutral rating. BofA Securities and RBC Capital Markets have also adjusted their price targets to $185 and $219, respectively. Baird and Wells Fargo (NYSE:WFC) have set their price targets at $225, with Baird maintaining an Outperform rating and Wells Fargo keeping an Overweight rating. Despite facing market challenges, Ferguson anticipates low-single-digit contraction in the underlying market for fiscal year 2025 but expects price and volume to improve throughout the year.
InvestingPro Insights
To provide context for Richard Winckler's recent stock transactions, let's examine some key financial metrics for Ferguson Enterprises Inc. (NYSE:FERG). According to InvestingPro data, Ferguson boasts a market capitalization of $40.68 billion, positioning it as a prominent player in the Trading Companies & Distributors industry. This substantial market presence aligns with the company's executive compensation practices, which include performance share plans and restricted stock unit grants as seen in Winckler's recent acquisitions.
Ferguson's P/E ratio stands at 23.64, suggesting that investors are willing to pay a premium for the company's earnings. This valuation metric may reflect market confidence in Ferguson's future growth prospects, despite InvestingPro Tips indicating that 9 analysts have revised their earnings downwards for the upcoming period.
Notably, Ferguson has demonstrated strong financial performance, with a revenue of $29.64 billion in the last twelve months as of Q4 2024. The company's profitability is underscored by an InvestingPro Tip stating that Ferguson has been profitable over the last twelve months, with a gross profit margin of 30.55% during this period.
For investors considering Ferguson's stock in light of these insider transactions, it's worth noting that the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, as highlighted by InvestingPro Tips. These factors contribute to the company's financial stability and may influence investor confidence.
InvestingPro offers additional insights, with 5 more tips available for Ferguson, providing a more comprehensive analysis for those interested in delving deeper into the company's financial health and market position.
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