“Ferrari’s high-end market focus and long backlog of orders makes it a great stock to buy during times of economic uncertainty, it is defensive in the automotive sector“– Paul Ebeling
Ferrari (NYSE:RACE) has a balanced strategy of volume growth, price power, and model introductions over the next several that should drive Strong revenue and EPS growth as its Supercars have the highest margins in the industry at nearly 24%.
Recently, insiders and hedge funds have made changes to their positions in the company.
Highland Capital Management LLC acquired a new stake in Ferrari during Q-4 of Y 2020, according to the company in its most recent 13F filing with the SEC. The firm acquired 4,950/shares of the company’s stock, valued at about $1,136,000.
Private Advisor Group LLC purchased a new stake in shares of Ferrari worth $116,000. Principal Financial Group Inc. boosted its position in Ferrari by 90.0%. Principal Financial Group Inc. now owns 2,850 shares of the company’s stock worth $487,000 after acquiring an additional 1,350 shares during Q-4. Mitsubishi UFJ Trust & Banking Corp grew its stake in Ferrari by 273.2% during Q-2 Y 2020. Mitsubishi UFJ Trust & Banking Corp now owns 989 shares of the company’s stock valued at $169,000 after acquiring an additional 724 shares in Q-4 Y 2020. Sycomore Asset Management raised its holdings in Ferrari by 91.6% in Q-3 Y 2020. Sycomore Asset Management now owns 47,900 shares of the company’s stock valued at $8,795,000 after acquiring an additional 22,900 shares during Q-4 Y 2020 And San Francisco Sentry Investment Group CA lifted its stake in Ferrari by 4.0% in Q-3 Y 2020. San Francisco Sentry Investment Group CA now owns 5,727 shares of the company’s stock worth $1,054,000 after purchasing an additional 220 shares in Q-4 Y 2020.
Institutional investors own 32.49% of the Maranello Outfit’s stock.
Societe Generale raised its price objective on shares of Ferrari from $217.00 to $237.00 and gave the company a “buy” rating in a report. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell downgraded shares of Ferrari from a “buy” rating to a “neutral” rating in a research note on Thursday, 7 January.
Currently 11 analysts including HeffX-LTN have given a buy rating to the company, 5 have given a hold rating, and 2 analysts rate the stock a sell. rating.
The current Wall Street target is 239.38.
Ferrari’s recently retired CEO Louis Camilleri was the only individual insider to sell stock over the last yr, he sold 28% of his stake valued at $1.8-M.
Ferrari insiders own 10% of the company, worth about $4.1-B. Public shareholders are happy to see this kind insider ownership, as it indicates that management incentives are well aligned with other shareholders.
Ferrari last announced its earnings results on Tuesday, 3 November. The company reported $0.92 EPS for the Quarter, meeting analysts’ consensus estimates of 0.92. Ferrari had a ROE of 34.85% and a net margin of 15.50%. The company had revenue of $888.00-M for the Quarter, compared to analyst estimates of $898.21-M. During the same frame in the prior yr, the company earned $0.90/share. As a group, research analysts predict that Ferrari will post $3.31 EPS for the current fiscal year, but it may surprise to the Northside on 2 February when it reports Q-4 and FY 2020 results.
Ferrari is The Aristocrat of the automotive sector.
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 expect the same for Q-4 and F-Y 2020 that will be reported on 2 February.
Ferrari finished trading Thursday at 212.07 against it 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.
All technical indicators are Neutral with a Bullish bias, the Key support is at 211.90, the Key resistance is 215.99. Ferrari’s stock is still oversold in here, but the Homing Pidgeon candlestick indicates that the selling is over.
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, Morgan Stanley and Bank of America. UBS is now calling the stock at 365. Citi downgraded the stock from Buy to Neutral Thursday. 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 239.98.
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 am calling it 375 long term , the Top on the Street, and adjusting it to 230/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 week, Keep the Faith!