Ferrari to launch eighth share buyback tranche of up to €360 million

MARANELLO, Italy - Ferrari N.V. (NYSE/EXM:RACE), the $78.68 billion luxury automaker whose stock has gained over 18% year-to-date, announced Thursday its plans to launch the eighth tranche of its multi-year share buyback program, authorizing repurchases of up to €360 million ($396 million) starting August 22, 2025.

The new tranche, which will run through December 18, 2025, continues the luxury automaker’s €2 billion buyback program announced during its 2022 Capital Markets Day. According to InvestingPro data, Ferrari maintains strong financial health with a comfortable debt position and robust liquidity metrics.

The repurchase plan consists of two components: a non-discretionary agreement with a primary financial institution for up to €280 million to be executed on the Euronext Milan market, and an additional mandate for up to €80 million to be executed on the New York Stock Exchange.

The financial institution handling the Euronext Milan purchases will make independent trading decisions regarding timing, uninfluenced by Ferrari, and will comply with applicable market regulations. This arrangement allows purchases to continue even during Ferrari’s closed periods.

The eighth tranche implements the resolution approved by Ferrari shareholders at their April 16, 2025 meeting, which authorized the company to repurchase up to 10% of its common shares over an eighteen-month period. This repurchase authority will expire on October 15, 2026, unless extended.

Ferrari stated that details of the repurchase transactions will be disclosed to the market as required by regulations.

The announcement comes as part of the company’s ongoing capital allocation strategy, based on a press release statement from the Italian luxury sports car manufacturer. InvestingPro analysis indicates Ferrari is currently trading above its Fair Value, with multiple ProTips highlighting its strong financial position and market performance. For detailed insights and additional ProTips, investors can access Ferrari’s comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Ferrari has secured a legal victory at the European Union’s second-highest court regarding its Testarossa trademark rights. The court annulled a previous decision by the European Union’s Intellectual Property Office, which had revoked Ferrari’s rights to the brand name due to a lack of "genuine use" from 2010 to 2015. In financial developments, Ferrari’s performance continues to attract positive attention from analysts. Barclays reiterated its Overweight rating, citing strong margin forecasts and estimating a Q2 2025 EBIT margin of 30.3%. UBS analysts have raised Ferrari’s stock price target to $560, maintaining a Buy rating following robust results and consistent trends among its clientele. Bernstein also maintained an Outperform rating with a $575 target, highlighting Ferrari’s impressive operating margin and free cash flow that exceeded expectations for Q1 2025. The company’s order book remains strong, with orders covering its entire production for 2026 and extending beyond 2027 for the Purosangue model. Despite macroeconomic challenges, these developments underscore continued confidence in Ferrari’s financial outlook.

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