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Friday, September 17, 2021

Ferrari’s (NYSE:RACE) Ownership Structure is Solid and Tight

#Ferrari #ownership #institional #insiders #retailinvestors


Ferrari (NYSE:RACE) has a market cap of $36-B. An analysis of the ownership of the company, below, shows that institutions big owners in the share registry.

Let us take a close look to see what the different types of shareholders can tell us about Ferrari.


Institutional investors have a big stake in Ferrari. This indicates credibility among professional investors.

Institutions own more than 50% the company. Ferrari is not owned by hedge funds.

EXOR NV, (OTC:EXXRF) Asset Management Arm is currently the company’s largest shareholder with 24% of shares outstanding. With 10% and 6.7% of the shares outstanding respectively, Piero Ferrari and Baillie Gifford & Co. are the 2nd and 3rd largest shareholders.

The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Management answers to the board, and it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership thinks like real owners of the company.

Insiders own a significant proportion of Ferrari with a $3.7-B stake in this $36-B business. This shows a high degree of alignment with shareholders, especially in a company of this size. The general public holds a 29% stake in Ferrari.

More than 50% the company’s shares are owned by the Top 6 shareholders, telling us that the larger shareholders are balanced by the smaller ones.

Now lets look at Ferrari’s earnings history in the chart below.


For CEO Camilleri on Ferrari’s 2020-2021 Earnings Outlook click here.

Ferrari’s performance throughout the C-19 coronavirus chaos is very impressive. Ferrari recently sold 10,000 units annually the 1st time in the automaker’s history with an average profit of $94,000 per car, about 24% margin, the Tops by far in the industry.

The performance is even more extraordinary given the company continues to adjust to the increasing and conflicting demands of the public markets, buyers, and ESG policies.

Ferrari is at the Top of the brand value hierarchy, that brand value permeates into everything Ferrari and is a critical element for valuing the company’s present and future.

Ferrari’s carry prestige that few automobiles can match. From a marketing and design perspective, Ferrari ingrains every new car with every bit of its iconic past. People are not buying an aluminum or carbon fiber chassis with V-12 or a bi-turbo V8 engine and F1-inspired dual clutch transmission, they are buying a piece of Ferrari history.

Ferrari became standalone public company in Y 2015 after Chrysler’s 10% stake and Fiat’s (NYSE:FCAU) majority ownership approved the deal. 

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

HeffX-LTN overall technical outlook for RACE is overall Very Bullish, the Key resistance is 195.15, Strong Support is at 187.84.

Our overall technical outlook is Very Bullish in here, as all Key indicators are Very Bullish.

Ferrari finished at 199.29, +1.98 Wednesday in NY, just off of its all time high at 199.97 marked intraday Wednesday, 26 August.

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

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

Ferrari is a quality 1st long term luxury products investment, and I called it at it at 200+/share ATV (after the virus) and sided with BAML to 230 long term, then…

Thursday, 13 August I raised my long term target to 300, a Strong Bull call.

Ferrari has an average rating of “Buy” and an average target price at 194.33.

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

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term ATV and siding with BAML to 230 long term for now.

The stock is now 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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