4. Ferrari N.V. (NYSE:RACE)
Number of Hedge Fund Holders: 32
Ferrari N.V. (NYSE:RACE) is involved in the global design, engineering, manufacturing, and distribution of high-end performance sports cars. The company provides various types of vehicles, including range, special series, Icona, and supercars, as well as limited edition supercars and customized one-off cars. Additionally, the company offers track cars designed for racing. It is one of the best car stocks to watch.
On April 14, Ferrari N.V. (NYSE:RACE) stock rose significantly after revealing a historic order list that reaches until 2024. Additionally, the company disclosed the outcomes of the resolutions proposed at its Amsterdam meeting, all of which were accepted. One of the accepted proposals involves paying a dividend in cash of €1.81 per common share outstanding, equating to €329 million, to shareholders on May 5.
Goldman Sachs analyst George Galliers upgraded Ferrari N.V. (NYSE:RACE) to Neutral from Sell with a price target of $283, up from $182 on April 6. The analyst’s outlook on the luxury segment of the automobile industry has become more optimistic, as he believes it is less susceptible to competitive threats and will likely remain steady during periods of economic downturn. Furthermore, the analyst stated that the recent shift in regulations to permit the use of e-fuel could decrease capital expenditure and lower the risk of companies and their brands in the long run.
According to Insider Monkey’s fourth quarter database, 32 hedge funds were bullish on Ferrari N.V. (NYSE:RACE), compared to 31 funds in the prior quarter. Anand Desai’s Darsana Capital Partners is the largest stakeholder of the company, with 750,000 shares worth $160.6 million.
Ensemble Capital made the following comment about Ferrari N.V. (NYSE:RACE) in its Q1 2023 investor letter:
“Ferrari N.V. (NYSE:RACE) (+26.48%): The luxury automaker’s long awaited Purosangue, their first four door, four seater vehicle, has proven so popular that the company announced that they have ceased accepting new orders as they are sold out through all of this year and into 2024. The Purosangue is designed not as a copycat sports utility vehicle that many other luxury automakers sell, but as a true Ferrari car that their devoted fan base can use for more practical transportation needs. Since the average Ferrari is only driven a few thousand miles a year or less, they are best understood as mechanical works of art rather than a means of transportation. But with the introduction of the Purosangue, Ferrari enthusiasts will have a vehicle that meets transportation needs, while still delivering the extremely high end experience that you would expect from a car that costs about $500,000.”
