Home 2022 Ferrari (NYSE:RACE): Periodic Report on the Buyback Program

Ferrari (NYSE:RACE): Periodic Report on the Buyback Program

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#Ferrari #stock #buyback #NYSE

$RACE

Maranello (Italy), March 21, 2022 – Ferrari NV (NYSE:RACE) (“Ferrari” or the “Company”) informs that the Company has purchased, under the sixth tranche of the common share buyback program announced on March 3, 2022 (“Sixth Tranche”), additional common shares – reported in aggregate form, on a daily basis – on Euronext Milan (EXM) as follows:



Trading
Date
(dd/mm/yyyy)


Stock Exchange


Number of common shares purchased


Average price per share
excluding fees
(€)


Consideration excluding fees



(€)
15/03/2022EXM16,562175.34142,904,005.00
16/03/2022EXM1,777183.4044325,909.70
17/03/2022EXM6,543186.76981,222,035.10
18/03/2022EXM6,454185.83551,199,382.35


Total


31,336180.34635,651,332.15

(*) translated at the European Central Bank EUR/USD exchange reference rate as of the date of each purchase

Since the announcement of the Sixth Tranche of the buyback program dated March 3, 2022 till March 18, 2022, the total invested consideration has been:

  • Euro 18,554,255.80 for No. 104,449 common shares purchased on the EXM
  • USD 9,413,362.26 (Euro 8,607,940.43*) for No. 49,800 common shares purchased on the NYSE.

Under the Company’s equity incentive plans, on March 16, 2022 the Company assigned, inter alia, to certain employees of Ferrari Group No. 122,125 common shares held in treasury. On the same day Ferrari purchased in a “cross order” transaction executed on the EXM No. 56,517 common shares from a group of those employees in order to cover their individual’s taxable income as is standard practice (Sell to Cover) at the average price of Euro 183.3946 per share.
As of March 18, 2022, the Company held in treasury No. 10,582,454 common shares equal to 4.12% of the total issued share capital including the common shares and the special voting shares, net of shares assigned under the Company’s equity incentive plan.

Since January 1, 2019 until March 18, 2022, the Company has purchased a total of 5,462,736 own common shares on EXM and NYSE, excluding transactions for Sell to Cover, for a total consideration of Euro 830,582,762.77.

A comprehensive overview of the transactions carried out under the buyback program, as well as the details of the above transactions, are available on Ferrari’s corporate website under the Buyback Programs section (http://corporate.ferrari.com/en/investors/stock-and-shareholder-corner/buyback-programs).

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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+.

Ferrari is among Morgan Stanley’s Top stock picks for 2022, ranking first on the Adam Jonas-led team’s list of favorite EV stocks for 2022. The stock has replaced General Motors as Morgan Stanley’s top pick this year. Ferrari designs, engineers, produces and sells luxury performance sports cars, and is a prospective big player in the EV sector.

Analyst Adam Jonas at Morgan Stanley holds an Overweight rating on Ferrari shares as well, as of January 2022.

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.

Ferrari is trading Monday at 210.20 +2.66 (+1.28%) After hours: 05:16PM EDT within its 52 wk range of 127.73 – 275.30 in NY, down from its all time closing high at 275.30 on 22nd November.

A Key technical indicator has just turned Very Bullish, as the stock is very oversold in here. The candlestick pattern indicated the confirmation of the break out at 196.01 on 3 November and confirmed.

The Key resistance is at 237.13, the Key support is at 204.66, our Key technical indicator has turned Very Bullish, the stock is very oversold in here.

Societe Generale places a Street high price target of $290 on RACE as compared to the average sell-side price target at 195.93. Most Street analysts still do not know how to view Ferrari.

Morgan Stanley called out $RACE a “sleeper” EV play as the firm can justify more than 100% of the company’s value with its ICE business. MS’s new price target of $350 reps more than 35% Northside potential for shares and is above the average analyst 1 yr target is at 208.64.

MS automotive analyst says, “Longer term, we see scope for Ferrari to offer a range of EV products at potentially higher prices than the average selling price of today’s Ferrari, while leveraging economies of scale on higher volumes.

Note: At the beginning of Y 2020 I called RACE at 230 by year’s end, the stock was trading at 165.22 on 1 January 2020, on 29 December 2020 it marked 233.66 intraday, an all time high

The Maranello Outfit’s shares were raised to Buy from Hold at HSBC, and Buys at Morgan Stanley and Bank of America.

UBS is now calling the stock at 365. I have not seen any other Street downgrades.

Ferrari will continue to create value in the long term as it becomes the world’s 1st Super Luxury brand.

Ferrari is a quality 1st long term luxury products investment, BAML raised its call to 270 long term.

I have raised my long term target to 375, a Strong Bull call, the strongest on the Street and am holding the mark during this recent profit taking, and seeing RACE as a buying opportunity.

Ferrari has an average rating of Buy and a consensus target price at 208.29.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I am calling it 375 long term, the Top call on the Street, and adjusting it to 250/share short term.

A number of large investors have recently bought shares of RACE, and Ferrari continues to buy back its stock in here.

The stock is considered defensive in the sector.

Have a prosperous week, Keep the Faith!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.