Ferrari (NYSE:RACE) N.V. is commencing the fourth tranche of its share buyback program today, with an investment of Euro 350 million. This move is a part of the multi-year share buyback program worth approximately Euro 2 billion, which was announced during the 2022 Capital Markets Day and is expected to complete by 2026.
The company has already bought back over two million shares for around Euro 559 million through earlier tranches and Sell to Cover transactions. The fourth tranche is scheduled to run until June 26, 2024, and adheres to the resolution from the Shareholders' Meeting on April 14, 2023, allowing the purchase of up to 10% of the company's common shares within eighteen months until October 13, 2024.
The buyback scheme includes a non-discretionary buyback agreement for up to Euro 250 million on the EXM market through a primary financial institution under Market Abuse Regulation 596/2014 and Commission Delegated Regulation (EU) 2016/1052. In addition, Ferrari has another mandate with a financial institution for repurchases of shares worth up to Euro 100 million on the NYSE.
Ferrari, known worldwide for its luxury performance sports cars and successful Formula 1 team, Scuderia Ferrari, operates in over 60 markets. The company's forward-looking statements are available in reports filed with the U.S. Securities and Exchange Commission.
InvestingPro Insights
As Ferrari embarks on the fourth tranche of its share buyback program, InvestingPro data and tips provide some interesting insights. With a market capitalization of $59.95B and a P/E ratio of 47.93, Ferrari is demonstrating strong financial status. The company's revenue growth over the last twelve months as of Q3 2023 stood at 18.68%, indicating a healthy trajectory.
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