Ferguson Share Repurchase Program - Weekly Report

Rhea-AI Summary

Ferguson plc (FERG) announces the purchase of 48,130 ordinary shares as part of its $3.0 billion share repurchase program.

Insights

Financial Analyst

The share repurchase program initiated by Ferguson plc represents a significant capital allocation decision that can have various implications for the company's financial health and shareholder value. Share buybacks are often perceived positively by the market as they can indicate that the company believes its stock is undervalued and is confident in its future prospects. It also suggests a surplus of cash on hand, which implies efficient operations and potentially robust profitability.

From a financial analyst's perspective, the repurchase of 48,130 shares could signal management's commitment to returning value to shareholders, which might lead to an uptick in investor confidence. However, it is essential to scrutinize the funding source for the buyback. If the repurchase is financed through debt, it could lead to higher leverage ratios, which may be a point of concern for long-term financial stability.

Furthermore, the impact on earnings per share (EPS) must be considered. A reduction in the number of outstanding shares typically results in higher EPS, which could make the stock more attractive to investors. However, this must be balanced against the opportunity cost of not investing that capital into potentially more accretive business activities or acquisitions.

Market Research Analyst

The execution of a share repurchase program can also be indicative of broader market trends and investor sentiment. The timing of such programs often reflects the company's market outlook. If the repurchase occurs when share prices are relatively low, it can be inferred that the company is taking advantage of market conditions to buy back shares at a discount, which could be a savvy strategic move.

Market research analysts would examine the sector performance and compare Ferguson's buyback strategy with its peers. Any deviation from the norm could be a strategic differentiator or a red flag, depending on the context. For instance, if competitors are focusing on expansion while Ferguson is buying back shares, it raises questions about the company's growth strategy and market positioning.

Analysts would also assess the impact on liquidity and trading volumes. A substantial repurchase program could reduce the free float of shares, potentially making the stock less liquid and more volatile. This could deter some investors, particularly institutional ones, who prefer more liquid and stable investments.

WOKINGHAM, England--(BUSINESS WIRE)-- Ferguson plc (NYSE: FERG, LSE: FERG) (the “Company”) announces today that it purchased a total of 48,130 of its ordinary shares in the period from February 26, 2024, up to and including March 1, 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
February 26, 2024	400	209.6000	ARCX
February 26, 2024	100	210.1100	CDRG
February 26, 2024	97	210.2000	KNLI
February 26, 2024	3	210.1900	XNAS
February 26, 2024	4,200	209.5314	XNYS
February 27, 2024	500	209.8540	ARCX
February 27, 2024	100	210.8299	BATS
February 27, 2024	100	210.6200	EDGX
February 27, 2024	495	210.1313	XNAS
February 27, 2024	14,232	209.7951	XNYS
February 28, 2024	400	210.9425	ARCX
February 28, 2024	4	210.6200	EPRL
February 28, 2024	96	210.6300	HRTF
February 28, 2024	6,200	210.8679	XNYS
February 29, 2024	500	210.0780	ARCX
February 29, 2024	100	208.7100	IEXG
February 29, 2024	190	207.9800	KNLI
February 29, 2024	100	207.7000	LATS
February 29, 2024	300	208.8300	XNAS
February 29, 2024	17,113	209.3051	XNYS
March 1, 2024	300	213.4833	HRTF
March 1, 2024	13	212.8954	XNAS
March 1, 2024	2,400	212.8338	XNYS
March 1, 2024	187	213.4020	XTXD

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 29,360,681.

Following the purchase of these shares, the remaining number of ordinary shares in issue will be 202,810,501. The figure of 202,810,501 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/20240306620290/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 48,130 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 February 26, 2024, and March 1, 2024.