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Ferrari (NYSE:RACE) Restarts its Multi-year Share Repurchase Program

#Ferrari

$RACE

Ferrari (NYSE:RACE) has announced is its intention to restart its multi-year share repurchase program announced on 28 December 2018 with a 4th tranche of up to EUR150-M to start on 12 March 2021, and to end no later than 30 September 2021, of which up to EUR120-M to be executed on the MTA market under a non-discretionary share repurchase agreement with a primary financial institution and up to EUR30-M to be executed on the NYSE under an additional mandate with a primary financial institution.

According to the Program, to date Ferrari has acquired 3,809,334 common shares for a total consideration of approximately EUR 513-M, with the last purchase having been made on 30 March 2020, when the Program was temporarily suspended at the inception of the coronavirus outbreak.

The Fourth Tranche will be conducted in the framework of the resolution adopted by the Annual General Meeting (AGM) of Shareholders held on 16 April 2020. The repurchases will be made in accordance with applicable laws and regulations.

As of today, 11 March 2021 the Company holds 9,175,609 common shares in treasury, including the share repurchased by Ferrari according to the standard practice Sell to Cover deriving from the Y 2019 equity incentive plan

Ferrari is The Aristocrat of the automotive sector.

Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos

Our overall technical outlook is still Bullish, a 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 closed Thurssday 196.42 within its 52 wk range of 127.73 – 233.66 in NY. It’s all time high in NY was marked at 233.66 intraday on 29 December.

A Key technical indicator has turned Very Bullish. Ferrari’s stock is very oversold in here, but the pattern still indicates the confirmation of the break out at 196.01 on 3 November and confirmed.

The Key support is strong at 196.31 and the Key resistance is at 210.84 at the close Thursday in NY.

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, its 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. Citi downgraded the stock from Neutral to sell. 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 243.60.

The Maranello Outfit’s shares were raised downgraded from Buy to Hold at HSBC Thursday.

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 on the Street, and adjusting it to 250/share short term.

A number of large investors have recently bought shares of RACE, and there has been just 1 instance of insider selling over the past yr that we have seen.

The stock is considered defensive in the sector.

Have a healthy weekend, Keep the Faith!

Paul Ebeling
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.   

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