Ferguson Share Repurchase Program - Weekly Report

Rhea-AI Summary

Ferguson plc announces the purchase of 66,789 ordinary shares as part of its $3.0 billion share repurchase program.

Insights

Market Research Analyst

The share repurchase program announced by Ferguson plc is a strategic maneuver often employed by companies to manage their capital structure and return value to shareholders. By buying back shares, the company effectively reduces the number of outstanding shares in the market, which can lead to an increase in earnings per share (EPS) and potentially boost the stock price.

From a market research perspective, the timing and scale of such buybacks can be influenced by the company's assessment of its stock's current valuation. If the leadership believes the stock is undervalued, repurchasing shares can be seen as a confident move signaling to the market that the company's prospects are positive. However, investors should be mindful of the opportunity cost of such programs, as the capital used for share repurchases is not being invested back into the company's growth or used for other strategic initiatives.

Financial Analyst

From a financial analysis standpoint, the $3.0 billion share repurchase program represents a substantial investment by Ferguson plc in its own equity. This action can be interpreted as a statement on the company's liquidity and balance sheet strength. A company engaging in buybacks typically has a solid cash reserve or the ability to generate significant cash flow to support such activities without compromising its financial stability.

Investors should review the company's debt levels, interest coverage ratios and free cash flow figures to ensure that the repurchase program does not adversely affect the company's long-term financial health. While a share buyback can be accretive to EPS in the short term, it is essential to consider whether the company is foregoing potential investments in innovation or expansion that could yield higher returns in the future.

Corporate Governance Expert

Share repurchases also have implications for corporate governance. They can alter the distribution of voting power among shareholders, potentially consolidating control. Moreover, executive compensation is often tied to stock performance metrics such as EPS, which can be impacted by share buybacks. Therefore, it is critical for stakeholders to evaluate the alignment of such corporate actions with the long-term interests of the company and its shareholders.

It is also important for investors to assess the transparency and rationale provided by the company for the repurchase program. A well-governed company should communicate clearly how such actions fit into its overall strategy and how they are expected to create shareholder value without sacrificing future growth prospects or financial resilience.

WOKINGHAM, England--(BUSINESS WIRE)-- Ferguson plc (NYSE: FERG, LSE: FERG) (the “Company”) announces today that it purchased a total of 66,789 of its ordinary shares in the period from April 1, 2024, up to and including April 5, 2024, in connection with its $3.0 billion share repurchase program.

Aggregated information about the purchases carried out during this period

Trading Day	Aggregate Daily Volume (in number of shares)	Daily weighted average purchase price of the shares (USD)	Trading Venue
April 1, 2024	773	217.6288	ARCX
April 1, 2024	227	218.6851	BATS
April 1, 2024	100	218.8050	CDRG
April 1, 2024	119	218.0986	EDGA
April 1, 2024	400	218.3400	HRTF
April 1, 2024	20	218.0900	IEXG
April 1, 2024	82	218.9200	KNLI
April 1, 2024	100	218.3010	LATS
April 1, 2024	1	218.7700	MEMX
April 1, 2024	105	217.9822	XASE
April 1, 2024	74	217.4192	XBOS
April 1, 2024	293	217.7691	XCIS
April 1, 2024	510	217.5776	XNAS
April 1, 2024	14,913	217.7976	XNYS
April 1, 2024	100	218.9400	XTXD
April 2, 2024	500	216.1680	ARCX
April 2, 2024	100	216.5700	IEXG
April 2, 2024	400	216.6175	XNAS
April 2, 2024	14,433	216.4063	XNYS
April 3, 2024	200	217.7300	ARCX
April 3, 2024	500	218.7520	XNAS
April 3, 2024	11,770	218.4360	XNYS
April 4, 2024	600	220.0967	ARCX
April 4, 2024	100	219.5100	CDRG
April 4, 2024	100	219.5100	HRTF
April 4, 2024	196	220.7288	XCIS
April 4, 2024	800	220.5775	XNAS
April 4, 2024	9,404	220.5147	XNYS
April 5, 2024	300	222.4733	ARCX
April 5, 2024	100	221.6100	XBOS
April 5, 2024	600	221.8800	XNAS
April 5, 2024	8,869	222.4352	XNYS

The Company intends to hold these shares in treasury. Following the purchase of these shares (including those purchased but not yet settled), the number of shares held by the Company in treasury will be 29,703,092.

Following the purchase of these shares, the remaining number of ordinary shares in issue will be 202,468,090. The figure of 202,468,090 may be used by shareholders (and others with notification obligations) as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Disclosure Guidance and Transparency Rules.

In accordance with Article 5(1)(b) of Regulation (EU) No 596/2014 (the Market Abuse Regulation), as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018, and the Commission Delegated Regulation (EU) 2016/1052, detailed information about the individual purchases can be found at Ferguson - Investors - Shareholder Center - Share Buy-Back Details - 2024 Share Buy-Back.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240410014658/en/

For further information please contact:

Brian Lantz, Vice President IR and Communications

+1 224 285 2410

Pete Kennedy, Director of Investor Relations

+1 757 603 0111

Source: Ferguson plc

FAQ

How many ordinary shares did Ferguson plc purchase recently?

Ferguson plc purchased a total of 66,789 of its ordinary shares recently.

What is the total value of Ferguson plc's share repurchase program?

Ferguson plc's share repurchase program is valued at $3.0 billion.

When did Ferguson plc make the recent share purchases?

Ferguson plc made the recent share purchases between April 1, 2024, and April 5, 2024.