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Ferrari Purchases Additional Common Shares
Maranello (Italy), September 23, 2024
Ferrari N.V. (NYSE/EXM: RACE) (“Ferrari” or the “Company”) informs that the Company has purchased, under the Euro 250 million share buyback program announced on June 28, 2024, as the fifth tranche of the multi-year share buyback program of approximately Euro 2 billion expected to be executed by 2026 in line with the disclosure made during the 2022 Capital Markets Day (the “Fifth Tranche”), the additional common shares – reported in aggregate form, on a daily basis – on the Euronext Milan (EXM) and on the New York Stock Exchange (NYSE) as follows:
As Ferrari continues with its strategic share buyback program, it demonstrates its confidence in its financial position and long-term growth prospects. By repurchasing shares, the company is able to return value to its shareholders and potentially boost the stock price.
Investors and analysts will be watching closely to see how this move impacts Ferrari’s stock performance in the short and long term. The company’s financial health and management’s ability to execute on its growth plans will also be key factors in determining the success of the share buyback program.
How Will This Affect Me?
As a shareholder of Ferrari, the share buyback program could potentially result in an increase in the value of your investment. By reducing the number of outstanding shares, the company may be able to boost its earnings per share, which could lead to a higher stock price.
However, it’s important to consider the broader market conditions and the overall performance of Ferrari when evaluating the impact of the share buyback program on your investment.
How Will This Affect the World?
While Ferrari is a relatively small company in terms of market capitalization, its actions can still have an impact on the broader financial markets. The success of the share buyback program could potentially boost investor confidence in the company and the automotive sector as a whole.
Additionally, Ferrari’s decision to return value to its shareholders through buybacks could influence other companies to consider similar strategies, particularly if they have excess cash on hand and believe that their stock is undervalued.
Conclusion
In conclusion, Ferrari’s purchase of additional common shares as part of its share buyback program is a strategic move that reflects the company’s confidence in its growth prospects. Shareholders may benefit from the potential increase in stock value, while the broader market may see a positive impact on investor sentiment in the automotive sector.
