Ferguson Share Repurchase Program - Weekly Report

Rhea-AI Summary

Ferguson plc (FERG) has repurchased 52,314 of its shares as part of a $3.0 billion share repurchase program.

Insights

Financial Analyst

The share repurchase program executed by Ferguson plc represents a significant capital allocation decision that can have various implications on the company's financial health and stock performance. Share buybacks are often seen as a signal of confidence from management in the company's future prospects and can lead to an immediate uplift in the stock price due to the reduction in the number of shares outstanding, which in turn increases earnings per share (EPS).

However, it's essential to evaluate the opportunity cost of such a program. The $3.0 billion used for the repurchase could have been allocated to other growth opportunities or debt reduction. Investors should assess the company's balance sheet strength and consider whether the buyback is the best use of capital, especially in the current economic environment where interest rates and inflation are key factors.

Market Research Analyst

From a market perspective, Ferguson's share repurchase program must be analyzed in the context of the broader industry and market trends. For instance, if the building supplies and home improvement sector is experiencing a period of growth, the repurchase could be seen as a move to consolidate gains and reward shareholders. Conversely, if the sector is facing headwinds due to economic downturns or supply chain disruptions, the buyback might be perceived as an attempt to support the share price artificially.

Investors would benefit from understanding the historical performance of Ferguson's stock in relation to share buybacks and comparing it to industry peers. Such analysis could reveal if Ferguson's strategy aligns with market expectations and sector performance.

Economist

Share repurchases have macroeconomic implications as well. They can be reflective of a company's view on the economy. For example, a firm engaging in a repurchase might believe that their stock is undervalued due to macroeconomic factors that will improve over time. Alternatively, it could be an indication that the company does not see sufficient high-return investment opportunities, which could be a bearish signal about economic growth.

Investors should consider the timing of the buyback. In a low-interest-rate environment, share repurchases are more attractive because the cost of borrowing is lower. However, in a high-interest-rate environment, the cost of debt can offset the benefits of a buyback, which could impact Ferguson's long-term financial flexibility.

WOKINGHAM, England--(BUSINESS WIRE)-- Ferguson plc (NYSE: FERG, LSE: FERG) (the “Company”) announces today that it purchased a total of 52,314 of its ordinary shares in the period from March 11, 2024, up to and including March 15, 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
March 11, 2024	900	196.3956	ARCX
March 11, 2024	200	196.8200	XNAS
March 11, 2024	12,240	196.9313	XNYS
March 12, 2024	705	198.9050	XNYS
March 13, 2024	200	205.2900	ARCX
March 13, 2024	200	205.2500	XNAS
March 13, 2024	2,300	204.4065	XNYS
March 14, 2024	698	207.6081	ARCX
March 14, 2024	30	205.9300	BATS
March 14, 2024	70	205.5500	HRTF
March 14, 2024	140	208.2373	XCIS
March 14, 2024	1,060	207.1158	XNAS
March 14, 2024	17,501	207.3259	XNYS
March 14, 2024	70	205.5500	XTXD
March 15, 2024	300	207.0733	ARCX
March 15, 2024	100	206.9200	BATS
March 15, 2024	638	206.8800	HRTF
March 15, 2024	300	207.0100	KNLI
March 15, 2024	703	207.1246	XNAS
March 15, 2024	13,959	206.8059	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 29,503,402.

Following the purchase of these shares, the remaining number of ordinary shares in issue will be 202,667,780. The figure of 202,667,780 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/20240320397587/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 shares did Ferguson plc repurchase recently?

Ferguson plc repurchased 52,314 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 repurchase the shares?

Ferguson plc repurchased the shares between March 11, 2024, and March 15, 2024.