Ferrari (NYSE:RACE) Shares Gap Down – What’s Next?

Ferrari N.V. (NYSE:RACE)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $348.24, but opened at $333.29. Ferrari shares last traded at $332.93, with a volume of 526,130 shares trading hands.

Ferrari News Roundup

Here are the key news stories impacting Ferrari this week:

• Negative Sentiment: Ferrari’s Luce EV debut has sparked a cool response from investors and critics, with concerns that the design and electric pivot could weaken the brand’s exclusivity and hurt near-term demand. Critics give Ferrari Luce EV a cool response, shares fall
• Negative Sentiment: Media and social posts have amplified backlash, with some critics mocking the Luce’s styling and comparing it unfavorably to cheaper mass-market cars, adding pressure on sentiment around the launch. Ferrari’s new $640K electric car already a massive fail
• Negative Sentiment: Several outlets noted that the stock fell sharply after the EV reveal, reflecting investor concern that Ferrari’s high-priced electric gamble may not be well received by luxury buyers. Ferrari shares fall 7% after luxury carmaker launches first fully electric vehicle
• Neutral Sentiment: Ferrari also highlighted progress on its ongoing €3.5 billion share buyback program, which may provide some support to the stock, but this has been overshadowed by the EV launch reaction. FERRARI N.V.: PERIODIC REPORT ON THE BUYBACK PROGRAM

Analyst Ratings Changes

RACE has been the subject of several research analyst reports. Royal Bank Of Canada reiterated an “outperform” rating on shares of Ferrari in a research report on Wednesday, February 11th. Morgan Stanley set a $420.00 price objective on shares of Ferrari in a report on Monday, February 16th. JPMorgan Chase & Co. boosted their price objective on shares of Ferrari from $407.00 to $447.00 and gave the stock an “overweight” rating in a report on Tuesday, March 3rd. Jefferies Financial Group upgraded shares of Ferrari from a “hold” rating to a “buy” rating in a report on Tuesday, March 31st. Finally, Citigroup upgraded shares of Ferrari from a “sell” rating to a “neutral” rating in a report on Thursday, February 12th. Three equities research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Ferrari has an average rating of “Moderate Buy” and an average target price of $469.06.

Ferrari Trading Down 5.5%

The stock has a market capitalization of $77.00 billion, a P/E ratio of 31.58, a price-to-earnings-growth ratio of 3.31 and a beta of 0.95. The company has a current ratio of 5.20, a quick ratio of 4.08 and a debt-to-equity ratio of 0.72. The stock’s fifty day moving average price is $339.94 and its two-hundred day moving average price is $359.48.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Groupama Asset Managment increased its stake in shares of Ferrari by 5.7% in the third quarter. Groupama Asset Managment now owns 16,990,621 shares of the company’s stock worth $8,244,189,000 after buying an additional 916,821 shares during the period. Vanguard Group Inc. increased its stake in shares of Ferrari by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 5,213,450 shares of the company’s stock worth $1,937,388,000 after buying an additional 58,506 shares during the period. Amundi increased its stake in shares of Ferrari by 11.1% in the fourth quarter. Amundi now owns 3,303,264 shares of the company’s stock worth $1,220,754,000 after buying an additional 330,896 shares during the period. Bank of New York Mellon Corp increased its stake in shares of Ferrari by 8.4% in the first quarter. Bank of New York Mellon Corp now owns 2,808,855 shares of the company’s stock worth $950,657,000 after buying an additional 218,830 shares during the period. Finally, Morgan Stanley increased its stake in shares of Ferrari by 43.4% in the fourth quarter. Morgan Stanley now owns 2,546,564 shares of the company’s stock worth $941,109,000 after buying an additional 771,039 shares during the period.

Ferrari Company Profile

Ferrari N.V. (NYSE: RACE) is an Italian luxury sports car manufacturer best known for designing, engineering and selling high-performance automobiles under the Ferrari marque. The company’s core business centers on the development and manufacture of premium sports cars and limited-series models, complemented by personalization and bespoke engineering services for high-net-worth clients. Ferrari also generates revenue from brand licensing, the sale of spare parts and accessories, aftersales services, and curated client experiences such as driving programs and factory visits.

Founded from the automotive activities of Enzo Ferrari, the first cars bearing the Ferrari name emerged in the late 1940s; the brand has since built a reputation for performance, craftsmanship and exclusivity.