“Ferrari is primarily owned by the public: 67.09% Public. 22.91% Exor NV, and 10.00% Piero Ferrari”–Paul Ebeling
Looking at the shareholders of Ferrari (NYSE:RACE) tell us who is powerful. Institutions often own shares in more established companies, while it is not unusual to see insiders own a lot of smaller companies. Ferrari has more than some insider ownership telling us that management is owner-oriented.
Ferrari is a big iconic company. It has a market cap or $41-B. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups, institutions do own shares in the company but not a lot.
A close look are the different types of shareholders tells us a lot about about Ferrari.
Ferrari is not owned by hedge funds. Our data shows that Giovanni Agnelli B.V. is the largest shareholder with 24% of shares outstanding. For context, the second largest shareholder holds about 10% of the shares outstanding, followed by an ownership of 5.4% by the 3rd-largest shareholder.
More than 50% the company’s shares are owned by the Top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. Several analysts cover RACE, so you could look into forecast growth easily.
Insiders have $4.2-B worth of shares in their names. That is significant and good to see this level of investment. The general public– including retail investors — own 31% stake in the company. While this group cannot call the shots, it can have some influence on how the company is run.
It is important to know that Ferrari has a stock buyback progran at is active daily in NY and Milan.
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 finished Thursday in NY at 215.55 , 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 Neutral, 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 233.16, the Key support is at 212.45, our Key technical indicator has turned Neutral to bearish in here as the company continues to buy back its stock.
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 214.43.
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 is still at 214.43.
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 more shares of RACE, and Ferrari continues to buy back its stock in here. I have seen no insider selling.
The stock is considered defensive in the sector.
Have a prosperous day, Keep the Faith!