A retail investor shares rationale for purchasing Ferrari shares at a lower price, citing resilient demand and robust financials despite recent market volatility. The move reflects growing confidence in the luxury automaker's positioning.
- Ferrari shares fell to $360 in late November 2025 from a high of $412
- Price-to-earnings ratio dropped to 14.2x, below its 5-year average of 21.5x
- Q3 2025 revenue: €1.28 billion, up 6.3% YoY
- Adjusted EBITDA reached €428 million, up 8.1% YoY
- Deliveries totaled 11,720 units YTD, a 3.8% increase
- Insider buying confirmed in October 2025, with 1,500 shares purchased
The decision to buy Ferrari stock during a recent price correction reflects a strategic assessment of the company's underlying strength. With shares trading below $360 per unit in late November 2025, down from a high of $412 earlier in the year, the dip presented a compelling entry point for investors focused on long-term value. At that level, the stock's price-to-earnings ratio fell to approximately 14.2x, significantly below its five-year average of 21.5x, signaling potential undervaluation relative to earnings power. Ferrari's operational performance remains robust, with third-quarter 2025 revenue reaching €1.28 billion, a 6.3% year-over-year increase, while adjusted EBITDA rose to €428 million, up 8.1%. These figures underscore the company’s ability to maintain margin resilience despite macroeconomic headwinds. Additionally, delivery numbers for the year-to-date period totaled 11,720 units, marking a 3.8% growth and reinforcing strong demand across key markets such as North America and Asia. The move to buy the dip is not isolated; institutional activity has also increased, with insider buying reported in October 2025, including a notable purchase of 1,500 shares by a senior executive. This aligns with broader market sentiment where high-net-worth investors view luxury automotive assets as defensive plays amid economic uncertainty. The stock’s performance on the Milan Stock Exchange (ticker: RACE.MI) has outpaced broader indices over the past 12 months, despite short-term volatility. Market impact has been notable: the RACE ticker saw a 7.4% rebound in the week following the article’s release, outperforming the FTSE MIB by 2.1 percentage points. Retail trading volume surged by 42% over the same period, indicating heightened interest. Investors in the luxury goods and high-performance automotive sectors are now closely monitoring Ferrari’s trajectory as a barometer of affluent consumer confidence.