The brand Ferrari announced that it had purchased on the Milan and New York stock exchanges, as part of the fifth tranche of share buyback program announced on 4 October 2021, from 6 to 10 December 2021, a total of 31,699 ordinary shares at an average unit price of € 230.5957, for a value of € 7,309,653.13. These are operations that have been planned for some time, ongoing, and which are taking place today at the best time ever for the listing of the Maranello company.
From October to November, continuing into December, there was in fact a jump in value, with the stock trading at € 200, while today it is around the € 230 threshold. From the announcement of the fifth tranche of the buy-back program of 4 October 2021 until 10 December 2021, the total consideration invested was 53,118,550.60 euros for no. 252,357 ordinary shares purchased on the MTA, and of USD 2,120,457.74 for n. 8,132 common shares purchased on the NYSE.
As of December 10, 2021, Ferrari held 10,033,392 ordinary treasury shares equal to 3.90% of the total issued share capital, including ordinary shares and special shares and net of the shares assigned under the Company’s stock incentive plan. In summary, from January 1, 2019 to December 10, 2021, the Maranello-based company repurchased a total of 4,848,066 treasury shares on the MTA and NYSE for a total consideration of € 708,418,221.97. The so-called buy back was suspended in the spring of 2020 when practically the whole planet was in lockdown due to Covid-19.
Buy back means the purchase of own shares by a SpA, and is executed directly by the company with its liquidity. There are several reasons for using this tool: to sustain the value on the stock market when the stock is suffering or to invest excess profits if there are no better opportunities (but this is not the case with Ferrari); trust the market; distribute value to reference investors; find actions to be granted to managers in order to achieve objectives; to have a reserve in order to subsequently be able to carry out acquisitions or exchanges.
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