So why was the stock down? Because it won't hit an ambitious goal that it set in 2018 until 2023, a year later than planned. Ferrari told auto investors in 2018 that it expected its profit to roughly double by 2022, with expanded profit margins driven by a range of new models (including the company's first-ever SUV).
Full Answer
Is Ferrari's stock really down 20% since November?
Looking at Ferrari's stock price change since November might lead investors to think Ferrari is not doing so well, declining by 20% from a high of $278 down to $224. But one listen to its recent earnings call tells a different story.
Why are investors attracted to Ferrari stock?
Investors are also drawn to Ferrari because it is more resistant to economic downturns. To put it bluntly, Ferrari's target consumer is of very high wealth and is more resistant to changing purchasing patterns during downturns compared to consumers of traditional automakers.
How did Ferrari increase sales without selling more cars?
As Ferrari's total orders have risen, it has been able to increase production (and thus sales) incrementally over time without diluting the brand. Ferrari has also hit on a number of ways to generate more profit without selling (a lot) more cars. First, it found that it could raise prices on its regular models without losing sales.
Is Ferrari stock hotter than the cars?
There's the adrenaline rush when mashing the throttle, the raw thrill of hearing the engine scream and the glorious soundtrack of nirvanic burbles and growls emanating from the exhaust pipes. Ferrari stock, however, is even hotter than the cars. Shares have spiked more than 65% since the start of the year.
Is Ferrari stock a good investment?
Ferrari has received a consensus rating of Buy. The company's average rating score is 2.73, and is based on 11 buy ratings, 4 hold ratings, and no sell ratings.
Why is Ferrari stock going up?
In fact, Ferrari's 2021 full-year revenue totaled $4.8 billion, a 23% increase over 2020, supported by a company record number of vehicles sold -- 11,155 total for the year -- up 22% over the previous year. By comparison, Ford sold 1.9 billion cars in 2021.
Is Ferrari stock overvalued?
Because Ferrari NV is relatively overvalued, the long-term return of its stock is likely to be lower than its business growth, which averaged 1.2% over the past three years and is estimated to grow 9.39% annually over the next three to five years.
Who is the largest shareholder of Ferrari?
Major holdersShareholder(1) - As of February 14, 2022% of outstanding common sharesExor N.V.(2)(6)24.21%Mr. Piero Ferrari(2)(6)10.30%BlackRock, Inc.(3)5.84%T. Rowe Price Associates, Inc.(4)4.04%2 more rows
Will Ferrari stock go up?
Stock Price Forecast The 18 analysts offering 12-month price forecasts for Ferrari NV have a median target of 209.96, with a high estimate of 300.00 and a low estimate of 135.34. The median estimate represents a +13.37% increase from the last price of 185.20.
What are the most overvalued stocks right now?
Here are seven stocks to sell before their outlooks dim even further:Peloton Interactive (NASDAQ:PTON)Teladoc Health (NYSE:TDOC)Block (NYSE:SQ)Nvidia (NASDAQ:NVDA)MicroStrategy (NASDAQ:MSTR)Royal Caribbean (NYSE:RCL)Boston Beer (NYSE:SAM)
Should you buy Hermes stock?
Broad Value Outlook In aggregate, Federated Hermes currently has a Value Score of B, putting it into the top 40% of all stocks we cover from this look. This makes Federated Hermes a solid choice for value investors, and some of its other key metrics make this pretty clear too.
Is US stock overvalued?
The American stock market currently appears to be overvalued by 37%. In other words, it would take a 27% drop to bring the market back to its long-run equilibrium level. At the last all-time high, on November 8, 2021, the market was 88.1% overvalued.
Does Jay Leno own any Ferraris?
Jay Leno is known for his insanely huge collection of cars and motorcycles. Ranging from the classic specimen to some of the rarest and modern machines out there, Mr. Leno keeps all his priced possessions clean, immaculate, and driven. But despite owning more than 180 cars and 160 motorcycles, he doesn't own a Ferrari.
Does Fiat still own Ferrari?
Unlike many similar yet independent companies, Fiat Group-owned Ferrari continued to thrive after the death of its charismatic founder and is today one of the most successful sports car companies in the world. In January 2016, Ferrari officially split off from its former parent company Fiat Chrysler Automobiles.
Does Ford own Ferrari?
To put it simply, no. Ford does not own Ferrari. But, as it turns out, there is a very good reason that you might have gotten the impression that they do. In fact, according to The New York Times, Ford did attempt to purchase Ferrari a ways back.
Should I buy or sell Ferrari stock right now?
16 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ferrari in the last year. There are currently 1 sell rating, 4 hold ratin...
What is Ferrari's stock price forecast for 2022?
16 brokerages have issued 1 year target prices for Ferrari's shares. Their forecasts range from $140.00 to $300.00. On average, they predict Ferrar...
How has Ferrari's stock performed in 2022?
Ferrari's stock was trading at $258.82 at the start of the year. Since then, RACE stock has decreased by 29.8% and is now trading at $181.82. View...
When is Ferrari's next earnings date?
Ferrari is scheduled to release its next quarterly earnings announcement on Monday, August 1st 2022. View our earnings forecast for Ferrari .
How were Ferrari's earnings last quarter?
Ferrari (NYSE:RACE) released its quarterly earnings results on Tuesday, November, 2nd. The company reported $1.11 earnings per share for the quarte...
How often does Ferrari pay dividends? What is the dividend yield for Ferrari?
Ferrari declared an annual dividend on Thursday, April 14th. Investors of record on Wednesday, April 20th will be paid a dividend of $1.362 per sha...
What guidance has Ferrari issued on next quarter's earnings?
Ferrari updated its FY 2022 earnings guidance on Monday, May, 9th. The company provided earnings per share (EPS) guidance of $5.11-$5.33 for the pe...
Who are Ferrari's key executives?
Ferrari's management team includes the following people: Mr. John Jacob Philip Elkann , Exec. Chairman (Age 46, Pay $355.99k) Mr. Benedetto Vign...
Who are some of Ferrari's key competitors?
Some companies that are related to Ferrari include Volkswagen (VWAGY) , Ford Motor (F) , General Motors (GM) , Stellantis (STLA) , AB Volvo (p...
Is Ferrari stock a Buy, Sell or Hold?
Ferrari stock has received a consensus rating of buy. The average rating score is and is based on 13 buy ratings, 1 hold ratings, and 1 sell ratings.
What was the 52-week low for Ferrari stock?
The low in the last 52 weeks of Ferrari stock was 179.01. According to the current price, Ferrari is 108.28% away from the 52-week low.
What was the 52-week high for Ferrari stock?
The high in the last 52 weeks of Ferrari stock was 278.57. According to the current price, Ferrari is 69.58% away from the 52-week high.
What are analysts forecasts for Ferrari stock?
The 15 analysts offering price forecasts for Ferrari have a median target of 262.07, with a high estimate of 350.00 and a low estimate of 207.00. T...
What is Ferrari stock worth in 2020?
Ferrari's stock was trading at $143.04 on March 11th, 2020 when COVID-19 reached pandemic status according to the World Health Organization (WHO). Since then, RACE shares have increased by 47.8% and is now trading at $211.35. View which stocks have been most impacted by COVID-19.
What is Ferrari's earnings per share for 2021?
Ferrari issued an update on its FY 2021 earnings guidance on Tuesday, May, 18th. The company provided earnings per share guidance of 4.824-5.065 for the period, compared to the Thomson Reuters consensus EPS estimate of $4.990.
Should I hold Ferrari stock?
A hold rating indicates that analysts believe investors should maintain any existing positions they have in RACE, but not buy additional shares or sell existing shares.
How much did Bonhams sell a Ferrari?
Instead, the real money can be made with Ferraris that have a racing heritage. Bonhams sold a 1962 Ferrari 250 GTO in 2014 for $38.1 million, which set a new world auction record at the time. That was broken four years later, when RM Sotheby's found a buyer willing to drop $48.4 million for one.
How much does a Ferrari fan spend on a Portofino?
There's another way to own a piece of the legendary Italian marque. A Ferrari fan could spend $215,000 on the Portofino, the company's newest convertible sports car and entry level model, or buy 1,335 shares of the company, which was recently trading at $162 on the New York Stock Exchange (ticker symbol RACE).
How much did a Ferrari 250 Berlinetta cost in the 1960s?
Courtesy of Bonhams. A 1962 Ferrari 250 GTO Berlinetta went for $38.1 million at a Bonhams auction in Carmel, California, August 2014. "The 1960s are seen as the halcyon era of motorsports," Minoff explained. "Ferrari made only 36 GTOs. The most valuable Ferraris will always be the racing versions from the 1960s.
What is the fastest Ferrari?
Ferrari. The SF90 Stradale plug-in hybrid is the fastest Ferrari production car to date. "The Portofino is the best-selling Ferrari now in terms of volume," he said. "The SF90 is a clear indication to push the brand away from trying to recruit entry-level buyers, a sector where there is a lot of competition.
When was the Ferrari Mondial made?
Minoff said for those without a pile of cash to spend on a "blue chip" Ferrari or modern car like the Portofino, the Ferrari Mondial, which was produced from the mid-1980s through the 1990s, could satisfy that desire. "You can still enter the pantheon of Ferrari ownership at the price of a used Honda Accord," he said.
When was the Ferrari 488 Pista Spider on display?
The Ferrari 488 Pista Spider on display at the Paris Motor Show, Oct. 2, 2018. Stephen Reitman, an analyst with Societe Generale, said there's evidence Ferraris have become more attainable than they were in the past, especially in regards to the newer models.
Does Ferrari sell in China?
Ferrari, unlike its competitor Porsche, has a problem selling cars in China, the world's largest automotive market. Just 8% of the 9,251 Ferraris delivered worldwide in 2018 went to China. The largest market for Ferrari is Europe, where 45.7% of cars were delivered in 2018.
What is the ticker symbol for Ferrari?
Ferrari's ticker symbol, "RACE," isn't just for show. In a typical year, about 15% of its revenue comes from Formula 1 racing and related activities. Image source: Ferrari.
When did Ferrari go public?
When Ferrari first went public, in October of 2015, auto investors and Wall Street analysts weren't quite sure what to make of it. On the one hand, Ferrari's pricing power, high margins, and ROIC made it a great business.
What did Sergio Marchionne argue about Ferrari?
Former Ferrari CEO Sergio Marchionne used to argue that Ferrari's pricing power and profitability made it more like a luxury-goods company than like an automaker. Specifically, he argued that it deserved a valuation more like a successful luxury group's — say between 25 and 40 times earnings — than like a big automaker's.
How much is a Ferrari Monza SP2?
The limited-edition Ferrari Monza SP2 is essentially an 812 Superfast with a stripped-down roadster body and a huge price tag: Around $1.75 million, versus $335,000 for the regular 812. Much of the difference is profit. Image source: Ferrari.
Why is China a boon for Ferrari?
First, the growth of China's luxury market has been a boon to Ferrari, because it increased the global pool of eligible Ferrari buyers. As Ferrari's total orders have risen, it has been able to increase production (and thus sales) incrementally over time without diluting the brand.
Is Ferrari stock expensive?
It's true: Ferrari's stock is very expensive by automaker standards. Even before the COVID-19 pandemic scrambled the markets, Ferrari's valuation was exceptionally high by automotive standards. Generally speaking, big automakers trade with price-to-earnings ratios around 8 to 10 in good times, but Ferrari's was around 39 as of the end of 2019.
Is Ferrari a capital intensive company?
On the one hand, that valuation seems crazy: All automakers, even Ferrari, are capital-intensive businesses with high fixed costs, old-school industrial companies that have never commanded big multiples from investors. But on the other hand, Ferrari isn't like the big automakers.
NYSE: RACE
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Its excellent stock ticker symbol no longer represents the big picture, and that's a good thing
There's a lot of talk about the automotive sector and how we're experiencing a revolutionary time of electrification in that industry -- one that could create millionaires out of early investors. Tesla and its unique leader Elon Musk have become names synonymous with electric vehicles.
2021 saw its largest number of vehicles sold in a single year
Looking at Ferrari's stock price change since November might lead investors to think Ferrari is not doing so well, declining by 20% from a high of $278 down to $224. But one listen to its recent earnings call tells a different story.
NYSE: RACE
So if you're looking to compare Ferrari to Ford, don't bother. Yes, they're both automakers, but Ferrari is more focused on quality rather than quantity -- that's no dig on Ford. Ferrari operates in a completely different market segment. Its least expensive vehicle goes for around $226,000.
Entering the SUV market to extend growth
As Ferrari looks toward filling those orders into 2023, it also wants to extend its growth into new markets such as SUVs and electric vehicles. The company has stated that it wants to be carbon neutral by 2030, something similar we've heard from Ford and other U.S.-based automakers.
A stronger model mix sets the tone for 2022
Building off of double-digit growth across all global regions, Ferrari heads into 2022 with a stronger model mix, including the Dayton SP3 and the SUV Purosangue. This should allow the company to meet the needs of customers looking for something more out of their Ferrari, as well as broaden its exposure to new Ferrari customers.
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Why are investors drawn to Ferrari?
Investors are also drawn to Ferrari because it is more resistant to economic downturns. To put it bluntly, Ferrari's target consumer is of very high wealth and is more resistant to changing purchasing patterns during downturns compared to consumers of traditional automakers.
Does Ferrari have margins?
Ferrari boasts margins most automakers can only dream of, and the margins continue to trend higher. Investors aren't only drawn to the automaker's lofty margins -- they're drawn to a number of additional competitive advantages.
