Investing in various financial instruments can bring solid income at the present time, because the “rally” taking place in the stock markets has reached its peak in a very long time. However, many investors doubt whether it is worth investing in one or another asset, because many of them have already reached their peak, an excellent example are the shares of Google, which must soon turn around and slightly lower their quotes. Today, we will consider if it is worth investing in Ferrari, or should you choose another instrument to earn money.
Ferrari stock, a brief analysis
Probably nowadays, it is impossible to meet a person who has not heard about the company Ferrari. Everyone associates this brand with the production of supercars and racing cars. Even though Ferrari is one of the most popular to rent among sportscars, Ferrari rent price in Dubai is not higher in comparison with others. Cars of this company have earned a special popularity thanks to Formula 1, the leaders of which were for decades.
Shares of Ferrari appeared on the stock exchanges much later than the creation of the company itself, only in 2016, they became available for public trading. The starting face value of one paper was $30, which is 6 times lower than the current quotations. The movement of the chart in the last two years deserves special attention. Having analyzed it, it is possible to understand that the quotation of value is already finished, and the new impulse to growth was already created.
Ferrari securities have been traded since October 2015 on the NYSE under the ticker RACE and the MSE of Milan under a similar ticker.
These shares are also listed on the exchanges of Germany, USA, UK, Switzerland, Mexico and Austria.
Two types of securities were issued:
- Class A. Ordinary voting shares, which give the right to 1 vote during the meeting of shareholders. Free-float index (share in free float on the stock exchange) exceeds 60%.
- Class B. Also entitled to one vote but not traded on the stock exchanges. Distributed among Exor N.V. (over 70%) and Piero Ferrari.
- Key shareholders include ET. Rowe Price Associates, BlackRock, Baillie Gifford & Co. Exor N. V. holds 35.82% of the voting power, with Piero Ferrari holding another 15.23%. These shareholders effectively control Ferrari N.V.
The capitalization of the company is currently estimated at €55.64B (billion). The securities are included in the baskets of a number of major indices:
- NYSE Composite.
- In Europe, Ferrari securities are included in STOXX 600, the sector index STOXX 600 Automobiles & Parts, STOXX Europe Mid
- In Italy, the share price of Ferrari N. V. affects Italy 40 and Thomson Reuters Italy 50.
- Quotes also affect the MSCI Pan Euro global index.
Since 2016, Ferrari has been paying dividends to its investors (in the range of 0.6-1.5% per year), which makes the stock even more attractive. The payment is made once a year in May.
The holding conducts a buyback program, regularly buying back some of its own securities from the market.
Ferrari stock outlook
Ferrari stock is a fairly stable stock market asset that has been in growth mode for five years. According to experts, this trend will last for at least two more years, and the nearest goals of quotations are 210 euro per unit with a further prolongation to the level of 240-245 euro. Given the current positions, and the temporary decline in price, it is better to invest in this asset now, while the cost is at an advantageous level.
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