Ferrari's Share Buyback Program Update and Future Plans
Ferrari's Share Buyback Program Overview
Ferrari N.V. (NYSE/EXM: RACE) is actively engaged in a substantial share buyback program, signaling its commitment to enhancing shareholder value. As part of this initiative, the company announced an impressive Euro 360 million investment in its eighth tranche on October 20, 2025. This is part of a broader multi-year strategy totaling around Euro 2 billion, planned for completion by 2026, as discussed in the recent Capital Markets Day.
Details of the Eighth Tranche Execution
In executing this eighth tranche, Ferrari reported the acquisition of several common shares from both Euronext Milan and the New York Stock Exchange. This program allows the company to stabilize and potentially increase the value of its shares by buying back portions of its outstanding equity.
Daily Purchases Overview
The details of the shares purchased reveal a steady effort, with thousands of shares acquired daily across both stock exchanges. For instance, on October 13, 2025, Ferrari bought 15,000 shares at an average price of 335.41 Euros. This trend continued with varying numbers and prices throughout October 2025, showcasing the company's strategic purchases to maximize share value.
Total Investment to Date
Since commencing this eighth tranche, the overall invested consideration has reached approximately Euro 178 million for shares bought on the EXM, alongside a considerable investment of USD 48 million equivalent for shares on the NYSE. By October 17, 2025, these transactions highlight Ferrari's robust strategy in enhancing its market position.
Current Status of Shares
As of mid-October 2025, Ferrari has maintained a treasury of 16,242,357 common shares, which equates to 8.38% of the total issued shares. When including special voting shares, the percentage climbs to 8.91%. This reflects an efficiently managed approach towards shareholding, demonstrating confidence in future growth.
Cumulative Efforts Since 2022
Since the initiation of this extensive buyback campaign on July 1, 2022, Ferrari has successfully purchased over 5.5 million common shares, with a total investment of nearly Euro 1.9 billion. This shows the company’s commitment to returning value to shareholders while strategically managing its capital structure.
Future Implications of the Buyback Program
The consistent buyback activity indicates Ferrari's strong cash flow and robust financial health, allowing it to reinvest in itself and provide long-term value to shareholders. This program not only boosts earnings per share but also reflects confidence in future growth prospects amidst a competitive automotive landscape.
Market Position and Strategic Growth
Ferrari continues to innovate within the luxury automotive sector, focusing on sustainable practices and cutting-edge technology. As the company maneuvers through various market challenges, its ongoing share buyback program is a strategic component of its broader growth strategy, appealing to both current and potential investors.
Frequently Asked Questions
What is the purpose of Ferrari's share buyback program?
The program aims to enhance shareholder value by reducing the number of outstanding shares, thus increasing earnings per share and supporting the share price.
How much has Ferrari invested in the buyback program so far?
As of October 17, 2025, Ferrari has invested approximately Euro 178 million in the eighth tranche of its buyback program.
What percentage of shares does Ferrari hold in treasury?
Ferrari currently holds 16,242,357 common shares in treasury, which is about 8.38% of the total issued shares.
How many shares has Ferrari purchased since the program began?
Since the program's launch in July 2022, Ferrari has purchased over 5.5 million common shares, marking a significant investment in its stock.
What other strategies is Ferrari employing for growth?
In addition to the buyback program, Ferrari is focusing on sustainable practices and technological innovations in the luxury automotive market to drive long-term growth.
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