Ferrari Announces Fifth Tranche of Share Buyback Program
Maranello (Italy), October 28, 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) as follows:
Today, Ferrari announced its purchase of additional common shares as part of its ongoing share buyback program. The company had previously announced a Euro 250 million share buyback program on June 28, 2024, with this latest purchase marking the fifth tranche of a larger program totaling approximately Euro 2 billion expected to be completed by 2026.
The purchase of these shares demonstrates Ferrari’s commitment to returning value to its shareholders and optimizing its capital structure. This strategic move aligns with the company’s long-term goals as outlined during the 2022 Capital Markets Day, showcasing their confidence in the future growth and profitability of the business.
Impact on Individuals:
For individual investors, Ferrari’s share buyback program can have several implications. Firstly, it may increase the value of existing shares by reducing the total number available in the market, potentially leading to a positive impact on stock prices. This could result in higher returns for shareholders who hold onto their investments.
Additionally, the buyback program signals the company’s belief in its own financial strength and stability. This vote of confidence can instill trust in investors, reassuring them of Ferrari’s ability to weather market fluctuations and generate long-term value.
Global Implications:
On a global scale, Ferrari’s share buyback program reflects broader trends in the business world. Share buybacks have become increasingly popular among companies seeking to optimize their capital structure and enhance shareholder value. By reducing the number of outstanding shares, companies can boost earnings per share and create a more attractive investment proposition.
Ferrari’s commitment to executing a multi-year share buyback program also highlights the company’s strategic vision and financial discipline. This move is likely to be closely watched by industry analysts and competitors alike, setting a precedent for how companies in the automotive sector approach capital allocation and shareholder returns.
Conclusion:
In conclusion, Ferrari’s announcement of the fifth tranche of its share buyback program reinforces the company’s focus on shareholder value and long-term growth. By actively repurchasing its own shares, Ferrari is demonstrating confidence in its future prospects and commitment to delivering returns to investors.
Individual shareholders stand to benefit from potential stock price appreciation, while the global business community will closely monitor Ferrari’s strategic moves as a key player in the automotive industry. Overall, this development underscores Ferrari’s financial strength and strategic foresight in navigating the competitive landscape of the market.
