How will the eighth tranche of the €360 million buyback affect Ferrari’s earnings per share and dividend coverage ratios?

The eighth €360 million tranche will pull a further ≈ 2 – 2.5 million shares (depending on the average execution price) out of the market, reducing the denominator in the earnings‑per‑share (EPS) calculation. Assuming Ferrari’s net profit for FY 2025 remains in line with the €1.6 billion reported in the first half of the year, the 1½‑2 % drop in share count translates into roughly a 1.5 %‑2 % uplift in EPS (e.g., from €5.12 to about €5.20‑€5.25). Because the dividend per share is set by the board and will likely stay at the current €2.90‑€3.00 level, the dividend‑coverage ratio (EPS ÷ dividend per share) will improve by a similar margin, moving from roughly 1.7× to about 1.85×‑1.9×. This modest but measurable increase reinforces the company’s ability to sustain its payout policy, a positive signal for income‑focused investors.

From a market‑technical perspective, the buy‑back announcement adds a bullish catalyst: the “Buyback” tag on the ticker, coupled with a sentiment score of 55, often triggers short‑covering and buying pressure, especially near the March‑low support at €220‑€225. Volume spikes are expected on the days of execution, and the price may test the 50‑day moving average resistance around €240. Traders could consider a small‑position long‑biased entry on pull‑backs to the 200‑day moving average (~€215) with a target near the recent high (€250), while keeping a stop just below the €200‑€205 range to limit downside if the buy‑back does not translate into sustained price appreciation. The EPS boost also supports the next earnings‑release expectations, making the stock relatively resilient to broader market volatility.