Ferrari’s (NYSE:RACE) Shares Dipped on Profit Taking Last Week

Ferrari’s (NYSE:RACE) Shares Dipped on Profit Taking Last Week

Ferrari’s (NYSE:RACE) Shares Dipped on Profit Taking Last Week


Ferrari stock (NYSE:RACE) traded on a negative note on the week ended 10 November, and settled at 109.56, or -6.7%, on profit taking after marking an all time high at 121.14 on 3 November.

The worst weekly loss for Ferrari stock in the past 9 months.

Why Ferrari Plunged Last Week

On 10 November Ferrari stock tested Key support at 108.50 but did not break the mark, 108.50 should continue to act as an immediate support this week, and a violation of this support could attract renewed selling pressure.

Tuesday, Ferrari’s shares finished at 109.08 in New York

As with Fiat-Chrysler Automobiles (NYSE:FCAU) stock, Ferrari’s RSI (relative strength index) indicators have diverged from the stock’s price.

On the Northside, 1st resistance lies at 113.70, followed by Key resistance at 117.50.

On 2 November 2, Ferrari released its Q-3 Y 2017 results, reporting EPS of 0.86. This reflected 25.4% Y-Y gains.

Its Q-3 Y 2017 revenues rose 6.7% Y-Y, and its Supercar shipments to North America also rose.

Higher global volume and product mix helped Ferrari grow its profit margins in the Quarter.

Ferrari’s profit margins are far better than all mainstream automakers including: Fiat Chrysler (NYSE:FCAU), Ford Motor (NYSE:F), and General Motors (NYSE:GM).

During its Q-3 Y 2017 earnings event, Ferrari revised its Y 2017 adjusted EBITDA guidance upward to EUR 1-B. The company had previously guided its adjusted EBITDA at EUR 950-M

HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Neutral (-0.04) Neutral (-0.19) Neutral (-0.02) Neutral (0.08)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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