Coty (NYSE:COTY) Reaches New 1-Year Low - Here's What Happened

Key Points

• Coty shares hit a new 52-week low, falling to as low as $1.95 and trading below the prior close amid heavy volume, underscoring continued pressure on the stock.
• Fresh securities class action notices from multiple law firms are drawing attention to allegations that Coty misled investors about deteriorating business trends, including weaker Consumer Beauty results and margin compression.
• Recent earnings and analyst actions remain mixed: Coty posted a small quarterly loss on slightly better-than-expected revenue, but analysts still mostly rate the stock Hold or worse with an average price target of $3.70, well above the current share price.

Coty (NYSE:COTY - Get Free Report) shares reached a new 52-week low on Tuesday . The company traded as low as $1.95 and last traded at $1.9550, with a volume of 2896978 shares traded. The stock had previously closed at $2.01.

Key Coty News

Here are the key news stories impacting Coty this week:

• Negative Sentiment: Multiple law firms issued reminders about the upcoming May 22 lead-plaintiff deadline in the securities class action against Coty, keeping allegations of misleading disclosures and investor losses in the spotlight. Article Title
• Negative Sentiment: The lawsuits allege Coty concealed deteriorating business trends, including weaker Consumer Beauty performance, margin compression from higher marketing spend, and slowing growth in Prestige fragrances, which could weigh on investor confidence. Article Title
• Neutral Sentiment: The legal notices do not add new operational guidance or earnings details, but they keep attention on Coty’s earlier February earnings report and CEO departure, which were already tied to the lawsuit. Article Title

Analyst Upgrades and Downgrades

COTY has been the subject of several research reports. TD Cowen lifted their price target on Coty from $2.30 to $2.90 and gave the stock a "hold" rating in a research note on Thursday, May 7th. Weiss Ratings downgraded Coty from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, May 13th. Morgan Stanley set a $2.50 price target on Coty in a research note on Thursday, May 7th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of Coty from $3.00 to $2.00 and set a "hold" rating on the stock in a research report on Monday, March 30th. Finally, Citigroup increased their price target on shares of Coty from $2.50 to $2.80 and gave the company a "neutral" rating in a research report on Thursday, May 7th. One equities research analyst has rated the stock with a Buy rating, thirteen have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $3.70.

Coty Price Performance

The company has a market capitalization of $1.71 billion, a price-to-earnings ratio of -3.14, a PEG ratio of 0.49 and a beta of 1.06. The company's 50 day simple moving average is $2.24 and its 200-day simple moving average is $2.83. The company has a current ratio of 0.82, a quick ratio of 0.49 and a debt-to-equity ratio of 0.97.

Coty (NYSE:COTY - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.03) earnings per share (EPS) for the quarter. The firm had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.27 billion. Coty had a positive return on equity of 4.59% and a negative net margin of 9.20%.Coty's revenue for the quarter was down 1.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.01 earnings per share. Coty has set its FY 2026 guidance at 0.330-0.350 EPS. On average, equities research analysts predict that Coty will post 0.22 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Coty news, insider Bretten Gordon Von purchased 83,000 shares of the business's stock in a transaction on Friday, March 6th. The stock was bought at an average cost of $2.41 per share, for a total transaction of $200,030.00. Following the acquisition, the insider owned 986,620 shares of the company's stock, valued at approximately $2,377,754.20. The trade was a 9.19% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 5.90% of the company's stock.

Institutional Trading of Coty

A number of hedge funds have recently added to or reduced their stakes in COTY. Tudor Investment Corp ET AL lifted its stake in shares of Coty by 1,912.3% in the 3rd quarter. Tudor Investment Corp ET AL now owns 1,600,131 shares of the company's stock valued at $6,465,000 after purchasing an additional 1,520,615 shares in the last quarter. Vanguard Group Inc. increased its position in Coty by 2.6% during the 3rd quarter. Vanguard Group Inc. now owns 37,704,142 shares of the company's stock worth $152,325,000 after purchasing an additional 964,040 shares in the last quarter. Assenagon Asset Management S.A. increased its position in Coty by 56.3% during the 4th quarter. Assenagon Asset Management S.A. now owns 4,508,040 shares of the company's stock worth $13,885,000 after purchasing an additional 1,624,114 shares in the last quarter. JPMorgan Chase & Co. increased its position in Coty by 100.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 2,198,397 shares of the company's stock worth $8,882,000 after purchasing an additional 1,101,090 shares in the last quarter. Finally, Thrivent Financial for Lutherans increased its position in Coty by 9.1% during the 3rd quarter. Thrivent Financial for Lutherans now owns 8,753,712 shares of the company's stock worth $35,365,000 after purchasing an additional 727,404 shares in the last quarter. 42.36% of the stock is owned by institutional investors and hedge funds.

About Coty

Coty Inc is a multinational beauty company specializing in the development, manufacturing and marketing of fragrances, color cosmetics and skin and body care products. Established in 1904 by François Coty in Paris, the company has grown through a blend of organic innovation and strategic acquisitions to become one of the leading players in the global beauty industry. Coty's portfolio encompasses a broad range of consumer and luxury brands, reflecting its commitment to catering to diverse consumer preferences and market segments.

The company's product offerings span three main divisions: Coty Luxury, Coty Consumer Beauty and Coty Professional Beauty.

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