Ferrari Launches €2.5 Billion Share Buyback Program
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
0mins
Source: Yahoo Finance
Ferrari's stock rose by 3.01% and reached a 20-day high amid the announcement of a €2.5 billion share buyback program. This program, which includes the repurchase of 360,810 common shares for a total investment of €104.9 million, reflects the company's confidence in its stock value and proactive management of its capital structure. The buyback initiative is expected to enhance shareholder value and provide flexibility for future capital allocation strategies.
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Analyst Views on RACE
Wall Street analysts forecast RACE stock price to rise
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 351.570
Low
349.74
Averages
448.83
High
555.00
Current: 351.570
Low
349.74
Averages
448.83
High
555.00
About RACE
Ferrari NV, known as Ferrari, is an Italy-based designer, manufacturer and retailer of sports cars that is incorporated in the Netherlands. It operates under the Ferrari brand. Its sports cars portfolio includes, among others, F12berlinetta, FF, Ferrari 488 GTB, 488 Spider, 458 Speciale, Ferrari California T, F12tdf and LaFerrari. The Company also offers financing services through Ferrari Financial Services. It also produces limited series and one-off cars. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China) and is active in over 60 markets worldwide through a network of authorized dealers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ferrari's Steady Financial Performance Amid Market Challenges
- Stock Price Decline: Since last summer, Ferrari's shares (NYSE: RACE) have dropped 33%, making the current valuation attractive, even as the market remains skeptical about its first fully electric vehicle, the Luce.
- Financial Growth: Between Q1 2021 and Q1 2026, Ferrari's revenue and diluted earnings per share increased by 83% and 110%, respectively, indicating that while growth may slow, the long-term trend remains positive.
- Strong Pricing Power: The company maintains a quarterly operating margin of 27.2%, driven by strong demand from low-volume runs, showcasing its robust economic moat in the luxury automotive sector.
- Attractive Valuation: With a price-to-earnings ratio of 33.4, which is 18% below its historical average, and a 34% contraction in the multiple over the past 12 months, the stock presents a compelling opportunity for investors who have been waiting on the sidelines.
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- Ferrari's Low Valuation: Currently priced at $357.52, Ferrari's stock is trading significantly below historical valuations primarily due to uncertainty surrounding its first full-electric vehicle, Luce, although its unique brand and high margins make it resilient during economic downturns.
- Unique Sales Strategy: By limiting sales volume, Ferrari maintains brand exclusivity and pricing power, achieving a gross margin of 51.86%, which allows it to stand out in a highly competitive automotive market; despite the current low stock price, it continues to attract investor interest.
- Stellantis Turnaround Plan: On May 21, Stellantis launched a $70 billion five-year turnaround plan, aiming to introduce nine new vehicles priced under $40,000 by 2030 to address the affordability crisis in the automotive market, targeting a 35% increase in sales volume in North America.
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- Ferrari's Low Valuation: Ferrari (NYSE: RACE) is currently trading at a significantly lower P/E ratio than its historical averages, primarily due to uncertainty surrounding its first full-electric vehicle, which has made investors anxious about its future performance, despite the brand's strong uniqueness and pricing power in the luxury market.
- Stellantis Turnaround Plan: Stellantis (NYSE: STLA) launched a $70 billion five-year turnaround plan on May 21, focusing 70% of its investment on core brands like Jeep and Ram, aiming to regain market share by introducing nine new models priced under $40,000.
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- Investor Attention Opportunity: Despite recent declines in stock prices for both Ferrari and Stellantis, the unique brand value of Ferrari and the turnaround potential of Stellantis make both companies worthy of investor attention, especially in the current market environment, potentially offering a rare buying opportunity.
See More
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- Stock Pullback: Since reaching an all-time high last July, Ferrari (RACE) shares have declined by 33% as of June 5, indicating market concerns about its future growth prospects.
- Growth Forecast: During an October capital markets presentation, Ferrari projected slower-than-expected growth through 2030, despite revenue and diluted earnings per share rising by 83% and 110%, respectively, from Q1 2021 to Q1 2026.
- Brand Strength: The Ferrari brand, as the company's most critical asset, remains robust, with strong demand driven by low-volume runs leading to an average quarterly operating margin of 27.2% over the past five years, showcasing its pricing power.
- Investment Opportunity: With a price-to-earnings ratio of 33.4, which is 18% below its historical average, now is an opportune time for patient investors to enter the market, as Ferrari is considered a smart buy.
See More
Ferrari's Steady Financial Performance Amid Market Challenges
- Stock Price Decline: Since last summer, Ferrari's shares (NYSE: RACE) have dropped 33%, making the current valuation attractive, even as the market remains skeptical about its first fully electric vehicle, the Luce.
- Financial Growth: Between Q1 2021 and Q1 2026, Ferrari's revenue and diluted earnings per share increased by 83% and 110%, respectively, indicating that while growth may slow, the long-term trend remains positive.
- Strong Pricing Power: The company maintains a quarterly operating margin of 27.2%, driven by strong demand from low-volume runs, showcasing its robust economic moat in the luxury automotive sector.
- Attractive Valuation: With a price-to-earnings ratio of 33.4, which is 18% below its historical average, and a 34% contraction in the multiple over the past 12 months, the stock presents a compelling opportunity for investors who have been waiting on the sidelines.
See More
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- Oracle Earnings Expectations: Oracle's stock has surged nearly 36% over the past three months, with an anticipated post-earnings move of 12%, indicating cautious optimism among investors that could influence market sentiment.
- Pharmaceutical Sector Dynamics: The S&P Health Care Index rose 1.3% on Tuesday, although it is down 3.5% from February highs, while the Pharma, Biotech, and Life Sciences sector has increased by 8.6% in the last month, reflecting investor confidence in this area.
- Target Stock Fluctuations: Target shares have risen 52% since the November low, gaining 2% on Tuesday, yet are down 5% from the April 21 high, highlighting the volatility and attention on retail stocks in the current market.
- Italy ETF Performance: The iShares MSCI Italy ETF hit a new high on Tuesday, ultimately closing up 1.5%, but has increased by 11% over the past three months, showcasing the recovery potential of the Italian market.
See More
Investment Opportunities in Ferrari and Stellantis
- Ferrari's Low Valuation: Currently priced at $357.52, Ferrari's stock is trading significantly below historical valuations primarily due to uncertainty surrounding its first full-electric vehicle, Luce, although its unique brand and high margins make it resilient during economic downturns.
- Unique Sales Strategy: By limiting sales volume, Ferrari maintains brand exclusivity and pricing power, achieving a gross margin of 51.86%, which allows it to stand out in a highly competitive automotive market; despite the current low stock price, it continues to attract investor interest.
- Stellantis Turnaround Plan: On May 21, Stellantis launched a $70 billion five-year turnaround plan, aiming to introduce nine new vehicles priced under $40,000 by 2030 to address the affordability crisis in the automotive market, targeting a 35% increase in sales volume in North America.
- Market Share Recovery Goals: Stellantis expects to achieve adjusted operating income margins of 8% to 10% by 2030 and aims to increase production capacity utilization to 80% through the launch of new models, which will positively impact its future competitive position.
See More
Investment Opportunities in Ferrari and Stellantis
- Ferrari's Low Valuation: Ferrari (NYSE: RACE) is currently trading at a significantly lower P/E ratio than its historical averages, primarily due to uncertainty surrounding its first full-electric vehicle, which has made investors anxious about its future performance, despite the brand's strong uniqueness and pricing power in the luxury market.
- Stellantis Turnaround Plan: Stellantis (NYSE: STLA) launched a $70 billion five-year turnaround plan on May 21, focusing 70% of its investment on core brands like Jeep and Ram, aiming to regain market share by introducing nine new models priced under $40,000.
- Market Demand and Pricing Strategy: With the average price of new vehicles hovering around $50,000, Stellantis's low-priced models will address an underserved market segment, and it targets a 35% increase in sales volume and a 25% revenue growth in North America by 2030, significantly enhancing its competitive position.
- Investor Attention Opportunity: Despite recent declines in stock prices for both Ferrari and Stellantis, the unique brand value of Ferrari and the turnaround potential of Stellantis make both companies worthy of investor attention, especially in the current market environment, potentially offering a rare buying opportunity.
See More
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- Major Contract Signed: Corning has secured a multi-billion dollar fiber supply agreement with Amazon, which is expected to significantly boost the company's revenue and market share, particularly in the optical communications sector.
- Production Expansion Plan: This partnership will lead to the creation of 1,000 new jobs at Corning's North Carolina facilities, further enhancing its production capacity to meet the growing demand for data centers.
- Positive Market Reaction: Corning's stock surged 8.4% at the open following the announcement, ultimately closing up over 5%, reflecting investor optimism about the company's future growth potential.
- Long-term Contract Security: Long-term agreements with hyperscale customers like Amazon will mitigate Corning's investment risks by ensuring a stable demand foundation before expanding capacity, thereby enhancing the company's competitive position in the industry.
See More
Ferrari Stock Pullback: Investors Should Focus on Long-Term Growth
- Stock Pullback: Since reaching an all-time high last July, Ferrari (RACE) shares have declined by 33% as of June 5, indicating market concerns about its future growth prospects.
- Growth Forecast: During an October capital markets presentation, Ferrari projected slower-than-expected growth through 2030, despite revenue and diluted earnings per share rising by 83% and 110%, respectively, from Q1 2021 to Q1 2026.
- Brand Strength: The Ferrari brand, as the company's most critical asset, remains robust, with strong demand driven by low-volume runs leading to an average quarterly operating margin of 27.2% over the past five years, showcasing its pricing power.
- Investment Opportunity: With a price-to-earnings ratio of 33.4, which is 18% below its historical average, now is an opportune time for patient investors to enter the market, as Ferrari is considered a smart buy.
See More
