Ferguson Share Repurchase Program - Weekly Report

Rhea-AI Summary

Ferguson plc (NYSE: FERG, LSE: FERG) announces the purchase of 28,148 ordinary shares as part of its $3.0 billion share repurchase program.

Insights

Financial Analyst

The recent share repurchase by Ferguson plc represents a significant financial strategy that could influence the company's stock performance. Share buybacks often signal a management's confidence in the firm's future prospects and typically bolster shareholder value by reducing the number of shares outstanding, hence potentially increasing earnings per share (EPS). The $3.0 billion repurchase program is substantial and could indicate that the company believes its shares are undervalued.

In the short-term, this can lead to a positive market reaction as investors may interpret the buyback as a sign of strength. However, it is essential to consider the opportunity cost of such a program. The funds used for share repurchases are not being invested in growth opportunities or held as a buffer for financial stability. Long-term implications will largely depend on the company's ability to generate sustainable earnings growth post-repurchase.

Industry Analyst

Within the context of the broader industry, Ferguson plc's share repurchase must be evaluated against sector trends and capital allocation strategies. If competitors are investing heavily in innovation or acquisitions, Ferguson's choice to repurchase shares might be viewed as conservative. It's important to assess whether this move aligns with industry norms regarding capital returns to shareholders versus reinvestment into the business.

It's also worth noting that the timing and structure of the buyback program can impact its success. The repurchase at market prices could suggest a different strategic approach compared to a tender offer at a premium. The aggregate data on the shares purchased will help in understanding the program's impact on the market price and the company's capital structure.

Economist

From an economic perspective, share repurchase programs can be reflective of broader economic conditions. In a low-interest-rate environment, companies may favor buybacks as a method to return capital to shareholders, especially if organic growth opportunities are limited. This move by Ferguson plc should be contextualized within current economic indicators, such as interest rates, inflation and overall market liquidity.

Moreover, the scale of the buyback program in relation to the company's market capitalization and cash reserves is crucial. A large-scale repurchase could affect the company's financial flexibility, which is particularly relevant in uncertain economic times. The repurchase strategy must be balanced against the need to maintain adequate cash reserves to navigate potential economic downturns.

WOKINGHAM, England--(BUSINESS WIRE)-- Ferguson plc (NYSE: FERG, LSE: FERG) (the “Company”) announces today that it purchased a total of 28,148 of its ordinary shares in the period from December 11, 2023, up to and including December 15, 2023, 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
December 11, 2023	100	181.6900	EDGX
December 11, 2023	3,240	182.3600	XDOT
December 11, 2023	1,300	182.3369	INET
December 11, 2023	360	182.5000	BATS
December 11, 2023	600	182.3950	ARCA
December 11, 2023	100	182.6000	MEMX
December 11, 2023	100	182.1600	NQPX
December 12, 2023	400	182.6450	EDGX
December 12, 2023	203	182.8501	ARCA
December 12, 2023	2,656	182.9876	XDOT
December 12, 2023	422	182.9075	BATS
December 12, 2023	1,119	183.0766	INET
December 12, 2023	300	183.0167	MEMX
December 12, 2023	300	182.5567	NQPX
December 12, 2023	200	183.2350	EPRL
December 12, 2023	100	183.2100	XPER
December 13, 2023	2,611	182.5438	XDOT
December 13, 2023	739	182.4058	INET
December 13, 2023	650	182.4300	BATS
December 13, 2023	900	182.1744	EDGX
December 13, 2023	200	182.3850	MEMX
December 13, 2023	300	183.0500	ARCA
December 13, 2023	200	183.9300	NQPX
December 14, 2023	2,702	188.0873	XDOT
December 14, 2023	300	186.9967	ARCA
December 14, 2023	500	188.0780	BATS
December 14, 2023	1,000	188.3130	INET
December 14, 2023	15	186.7600	XPER
December 14, 2023	292	188.0523	EPRL
December 14, 2023	491	189.0006	EDGX
December 14, 2023	100	188.9500	MEMX
December 14, 2023	100	189.8100	NQPX
December 15, 2023	1,300	189.4223	INET
December 15, 2023	500	188.8760	EDGX
December 15, 2023	800	189.4575	ARCA
December 15, 2023	2,440	189.2983	XDOT
December 15, 2023	308	189.3899	MEMX
December 15, 2023	200	189.9000	EPRL

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 28,739,703.

Following the purchase of these shares, the remaining number of ordinary shares in issue will be 203,431,479. The figure of 203,431,479 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 - 2023 Share Buy-Back.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231220896108/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 as part of its share repurchase program?

Ferguson plc purchased a total of 28,148 of its ordinary shares in the period from December 11, 2023, up to and including December 15, 2023.

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

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

Where is Ferguson plc listed?

Ferguson plc is listed on the New York Stock Exchange (NYSE) under the ticker symbol FERG and the London Stock Exchange (LSE) under the ticker symbol FERG.