“Insider ownership is positive when it signals leadership are thinking like the true owners of the company”–Paul Ebeling
Every investor in Ferrari (NYSE:RACE) should be aware of the most powerful shareholder groups. Institutions often own shares in established companies. So it is good to see some insider ownership, as it suggest that management is owner-oriented.
Ferrari is not owned by hedge funds. Giovanni Agnelli B.V. is the company’s largest shareholder with 24% of shares outstanding. With 10% and 5.5% of the shares outstanding respectively, Piero Ferrari and Baillie Gifford & Co. are the largest shareholders.
And more than 50% the company’s shares are owned by the Top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
The general public, who are usually individual investors, hold a 26% stake in Ferrari.
Ferrari is The Aristocrat of the automotive sector.
Ferrari is 1 of the most recognizable brands in the world, even becoming the world’s strongest luxury brand in Y 2021, according to Brand Finance. Its Brand Strength Index scored 93.9 pts out of 100 and has a brand strength of AAA+.
Our overall technical outlook is still Bullish, all Key indicators are Bullish long-term. Ferrari reported strong earnings for Q-3 on 3 November and did the same for Q-4 and F-Y 2020 as reported on 2 February. The current numbers willl be out on 2 August,
Ferrari trades at a 62%+ premium to luxury brands, but at a discount to leader, Hermes, as it has more opportunity to grow via: new customers, new segments and geographically in China & Asia-Pac with its world renowned brand and a 12+ month customer orderbook.
Have a prosperous day, Keep the Faith!