Fiat Chrysler Automobiles NV (FCAU) Shares Plunge Following Spinoff of Ferrari NV


Shares of Fiat Chrysler Automobiles NV (NYSE:FCAU) are down substantially in pre-market trading this morning after the company finalized the spinoff of luxury car manufacturer, Ferrari NV. The stock is down $5.03 or 35.95% as of 9:02 a.m. ET. While a drop like this was not expected by many traders, now that the company has shed one of its top brands, investors now will look at just how fast Fiat Chrysler Automobiles NV (NYSE:FCAU) can ramp up profits, while concentrating on lower end vehicles.

“Fiat Chrysler has now a very clear scope of activities,” Chairman John Elkann, head of the Agnelli family, which controls the company, said in an interview with Bloomberg TV. “It has now a very ambitious plan ahead.”

Shares of Fiat Chrysler Automobiles NV (NYSE:FCAU) were down over 5% in the three final trading days of 2015. Shareholder have received 1 share of Ferrari for every 10 shares of Fiat they own. Ferrari shares began trading in October on the NYSE and began trading in Milan today. The stock increased 52.23% or $4.8 during the last trading session, hitting $13.99. About 77,884 shares traded hands. FCAU has declined 12.73% since May 29, 2015 and is downtrending. It has underperformed the S&P500 by 9.72%.

From a total of 2 analysts covering Fiat Chrysler (NYSE:FCAU) stock, 1 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 50% of the ratings are positive. Fiat Chrysler was the topic of 2 analyst reports since August 24, 2015 according to the firm StockzIntelligence Inc. BNP Paribas reinitiated shares on November 16 with a “Neutral” rating.

Fiat Chrysler Automobiles N.V., an automotive group, designs, engineers, manufactures, distributes, and sells vehicles and components. It offers passenger cars, light trucks, and light commercial vehicles under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, and Ram brand names, as well as after-sales services and parts under the Mopar brand name. The company also produces and sells luxury sport cars under the Ferrari and Maserati brands. In addition, it produces and sells lighting components, engine control units, suspensions, shock absorbers, electronic systems, exhaust systems, powertrain components, plastic molding components, and after-market products under the Magneti Marelli brand name. Further, the company provides cast iron components for engines, gearboxes, transmissions and suspension systems, and aluminum cylinder heads under the Teksid name; and industrial automation systems and related products for the automotive sector under the Comau name. Additionally, it manages Ferrari racing team; and provides retail and dealer financing, leasing, and rental services, as well as engages in media and publishing business. Fiat Chrysler Automobiles N.V. sells its products directly, or through distributors and dealer in approximately 150 countries. The company was founded in 1899 and is based in London, the United Kingdom.