Ferrari Races Ahead with Ambitious Share Buyback Programs
Maranello, July 15, 2024’ Ferrari N.V. (NYSE/EXM: RACE), a name synonymous with luxury and automotive excellence, continues to make strides in its robust share buyback strategy. According to the latest announcement, the company has successfully executed another significant phase under its multi-year share buyback program. As part of the fifth tranche (the Fifth Tranche) of the plan, which was set in motion on June 28, 2024, Ferrari has acquired additional common shares valued at approximately €250 million on both the Euronext Milan (EXM) and New York Stock Exchange (NYSE).
This recent transaction represents a key step in Ferrari’s multi-year strategy, aimed at roughly €2 billion in share repurchases by the year 2026. The move comes in line with the commitments outlined during the company’s 2022 Capital Markets Day. Ferrari’s leadership believes that these buybacks will positively impact shareholder value, enhancing earnings per share while maintaining financial flexibility for strategic investments and innovation.
Today’s update follows closely on the heels of earlier announcements related to the fourth tranche (the Fourth Tranche) of the program. On June 17, 2024, Ferrari informed stakeholders that it had successfully bought back an additional €350 million of common shares under the tranche announced on November 7, 2023. The same tranche was also the subject of another periodic report on June 10, 2024, where the company confirmed its continued share buyback activities.
Each tranche is reported meticulously, with daily aggregate forms filed to ensure complete transparency. Trading occurs on prominent exchanges such as the Euronext Milan (EXM) and the New York Stock Exchange (NYSE), reflecting Ferrari’s dual listing and its international appeal.
The multi-year share buyback program not only showcases Ferrari’s dedication to rewarding its investors but also underscores its confidence in the company’s long-term vision and growth prospects. By systematically reducing the number of shares outstanding, Ferrari aims to make a significant positive impact on its earnings per share over time.
As Ferrari accelerates through its ambitious buyback plan, investors are rightfully optimistic about the company’s future trajectory. Balancing between preserving heritage and innovating for tomorrow, Ferrari exemplifies the seamless blend of tradition and strategy, driving shareholder value every mile of the journey.
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