Analysis of Ferrari share price for trading

You are undoubtedly familiar with the Italian automobile brand Ferrari but did you know that it is only fairly recently that this renowned company made its debut on the stock markets? If you are interested in buying or trading in Ferrari shares then we offer you the opportunity to learn more about this company’s activities, and its share price in real time as well as lots of useful information on its recent IPO including charts related to its stock market share price.  

Trade in Ferrari shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Our advice for trading Ferrari share

Tip number 1

Firstly, we would monitor efforts made by this brand to take position in the hybrid vehicle market or use advanced technologies as well as the new vehicle models already announced.

Tip number 2

In the same way, we would also strongly suggest you monitor how Ferrari uses owners’ social networks in order to find new clients.

Tip number 3

You should also take into account the efforts made by Ferrari to extend its distribution network and range of services to generate an increase in income.

Tip number 4

Any changes in the customs policies practised by certain importing countries relating to Ferrari will of course be of major importance for this group’s profitability.

Tip number 5

Finally, the top of the range sports vehicles sector and its respective indicators should be followed closely. It is particularly recommended to complete a comprehensive study of the competition in this sector and movements in the market parts of each company as well as the launch of new vehicles.

Trade in Ferrari shares!
75% of retail investor accounts lose money when trading CFDs with this provider.

General presentation of the Ferrari Company:

The Ferrari Group is an Italian manufacturer specialising in luxury cars. Its activities include the design, manufacture and sales of private vehicles as well as racing cars and other associated products.

The Ferrari group exports nearly 90% of its production and is present in over 60 markets around the world. It counts nearly 200 dealerships on an international level.

 

Know the competition to Ferrari shares:

The Italian Ferrari Group is one of the greatest names in luxury and sports vehicles worldwide. In this sector it has numerous competitors in the form of a number of internationally renowned brands that have jostled for position during numerous years. Here we offer you the opportunity to learn more about Ferrari’s direct competitors with a list of this luxury car brand’s major competitors.

  • Rolls Royce: This company remains the leader in this elite sector in terms of automobile sales.
  • Bentley: It is immediately followed by the Bentley brand which holds second place in this worldwide classification.
  • Ferrari: This renowned company holds third position worldwide.
  • Lamborghini: In fourth position is the Lamborghini Company.
  • Maserati: We then find Maserati in fifth position.
  • Other competitors: Finally, Aston Martin and Bugatti hold sixth and seventh places respectively in this classification.

 

Strategic alliances implemented by the Ferrari Group:

  • Bridgestone: In 2008, through its F1 racing stable, the Ferrari Group collaborated with the Bridgestone Group to develop tyres and find their best configuration for racing in the Italian Grand Prix.
  • Shell: Ferrari is also a long term partner of Shell, with the Formula 1 car racing sponsoring but also for research and innovation in which area the two companies have collaborated for numerous years.
  • Puma: In 2015 the Ferrari Group also celebrated its 10 year partnership with the Puma group and as part of these celebrations produced 4 special ranges of shoes on the racing car theme, directly inspired by the horse brand.

 

Introduction and quotation of Ferrari shares:

The Ferrari share price was quoted for the first time on 23 October 2015, the date of the initial IPO of this Italian company. The first quote was for $56.63 but we note that since this date its share price has dropped severely, passing under the $50 bar in November 2015.

 

Stock market data

Although it is of course extremely important to examine the information resulting from a technical analysis of the Ferrari share price history as well as fundamental data with the detailed activities of this group and the events that have marked its growth, it is still important to know the general stock market information that is still significant to this asset. This is why we have chosen to conclude this article with some information relating to the Ferrari quotation as well as certain key facts and figures concerning its position on the international stock markets:

  • In 2017 the total stock market capital of the Ferrari Company stood at 1,907.13 million Euros.
  • The number of shares issued by the Ferrari Company and currently in circulation on the market stands at 964,695.
  • The Ferrari share price is currently quoted on the Mercato Telematico Azionario of the Borsa Italiano MTA in Italy.
  • The Ferrari Company is also included in the national Italian FTSE MIB stock market index and is therefore one of the Italian companies with the largest stock market capital.
  • The current major shareholders of the Ferrari Company are as follows: 57.40% are floating shares, 23.50% of shares are held by the Exor Company, 10% by Mr. Piero Ferrari, and 9.10% are held by T. Rowe Price Associates.

 

Economic history

Here is some useful information on the economic and financial history of the Ferrari Company with dates that have particularly marked the last few years of this company.

  • In 2004 Luca di Montezomolo was named as chairman of the Ferrari Group.
  • In 2005, Ferrari sold 5,399 vehicles, then 5,743 in 2006 which represents an increase in its turnover of around 17%. Ferrari has always refused to manufacture and sell more vehicles despite a strong demand from its dealers, always favouring skilled workmanship over industrial manufacture.
  • At the end of 2006 the group made a buyout offer to Mediobanca to recover 29% of the Ferrari Group for 800 million Euros, which gave it overall control at 85%. The remaining 15% was ceded by the bank to the Mubadala investment fund in Abu Dhabi.
  • In 2014, the FCA Group (Fiat Chrysler Automobiles) announced its intention to separate from Ferrari by introducing 10 to 20% of this company onto the stock markets. The remaining shares would be distributed among FCA Group shareholders. The group thereby envisaged releasing 2.25 billion Euros through this operation.
  • In 2015 the separation operation between the manufacturer Fiat Chrysler Automobile and Ferrari was approved by the shareholders. This resulted in an FCA decision to transfer the Ferrari shares to the company FE Interim. This demerger was to become effective in January 2016.
  • Since 2016, Ferrari is therefore no longer part of the Fiat Group. It supplies engines and bodywork paint to Maserati, another previous subsidiary of the Fiat Group.

By recovering this information from the stock market charts you will be better able to anticipate future variations in the share price of this company.

 

The advantages and strong points of Ferrari shares as stock market assets:

Firstly, it should be remembered that the Ferrari brand has a long and distinguished history. It boasts a certain heritage and renown in its activity sector which represents a major strength nowadays. In fact the value of the Ferrari brand is one of the strongest in this sector given that its name is considered by the general public as synonymous with quality and excellence.

In fact, another strong point of the Ferrari Group is its strong position in the racing car sector. Due to its significant position in major championships and international competitions Ferrari again reinforces its visibility worldwide and thereby increases the trust of consumers and tempting automobile sports enthusiasts. This also enables Ferrari to demonstrate its aptitude for technological innovations and superior performance.

It should be noted that the innovative abilities of Ferrari are also a strong point of this company that manages a top rate design service and invests heavily in research and development to continue advancing in its engine design and luxury vehicles. The purchasers of these vehicles particularly appreciate the efforts made by this brand to equip its vehicles with a very light alloy that enables an enhanced manoeuvrability and a more effective acceleration than the majority of its competitors.

Ferrari has also recently invested heavily in terms of energy in the implementation of a programme dedicated to second hand sales. The company is no longer satisfied to simply sell its new made to order vehicles and now seeks to serve a wider range of clients which will of course lead to an increase in profits.

Another advantage of this company is related to the relatively small amount spent on marketing and advertising. Due to its global renown the brand remains a source of inspiration and is one of the most sought after throughout the world. Ferrari thereby achieves significant savings in terms of communications.

Finally, we would also note that the Ferrari group is not simply satisfied with manufacturing and selling sports and luxury vehicles, it also offers a number of highly lucrative associated products such as perfumes, clothing and miniature replicas of its vehicles.

 

The disadvantages and weak points of Ferrari shares as stock market assets:

Now that you know the major strengths of the Ferrari Group we now conclude with details of its principal weaknesses that will enable you to moderate your judgement when analysing this asset.

Firstly we note that the customs policies of certain countries create significant setbacks to Ferrari sales in certain areas worldwide. The complex import procedures for these vehicles tend to lengthen the process which can discourage certain buyers.

Ferrari also needs to meet the increasingly stringent requests from its clients as the group is currently unable to always satisfy their requirements.

To conclude, the competition remains a significant negative point for this company with competitors continuing to increase their efforts to take over parts of its market share.

Where to trade in Ferrari shares online?

Do you wish to take position now in Ferrari shares whatever direction the trend takes? In that case open a trading account now with a reputable online broker.

Trade in Ferrari shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.