Coty (NYSE:COTY) Hits New 1-Year Low - What's Next?

Key Points

• Coty's stock price reached a new 52-week low of $3.67 during trading, highlighting ongoing market challenges as it last traded at $3.70.
• Analysts have downgraded Coty's stock ratings and price targets, with Evercore ISI cutting its price objective from $10.00 to $7.00 and Jefferies lowering theirs from $6.00 to $4.00.
• Insider buying activity was noted, with CEO Sue Nabi acquiring 260,000 shares at $3.92 each, indicating possible confidence in the company's future despite recent stock performance.

Coty (NYSE:COTY - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $3.67 and last traded at $3.70, with a volume of 14001086 shares trading hands. The stock had previously closed at $3.81.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on COTY. Deutsche Bank Aktiengesellschaft lowered their price target on Coty from $6.00 to $4.00 and set a "hold" rating on the stock in a research report on Thursday, August 21st. Royal Bank Of Canada reduced their target price on shares of Coty from $12.00 to $10.00 and set a "sector perform" rating for the company in a research note on Friday, August 22nd. Canaccord Genuity Group reduced their target price on shares of Coty from $5.00 to $4.00 and set a "hold" rating for the company in a research note on Friday, August 22nd. JPMorgan Chase & Co. reduced their target price on shares of Coty from $6.00 to $5.00 and set a "neutral" rating for the company in a research note on Thursday, May 8th. Finally, Jefferies Financial Group cut shares of Coty from a "buy" rating to a "hold" rating and reduced their target price for the company from $6.00 to $4.00 in a research note on Thursday, August 21st. Four investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Coty presently has a consensus rating of "Hold" and a consensus target price of $6.19.

Coty Trading Down 1.3%

The stock has a market cap of $3.73 billion, a P/E ratio of -9.72, a PEG ratio of 0.39 and a beta of 2.00. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.77 and a quick ratio of 0.46. The business's 50 day simple moving average is $4.78 and its 200 day simple moving average is $5.06.

Coty (NYSE:COTY - Get Free Report) last announced its quarterly earnings results on Wednesday, August 20th. The company reported ($0.05) EPS for the quarter, missing analysts' consensus estimates of $0.01 by ($0.06). The business had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. Coty had a positive return on equity of 5.18% and a negative net margin of 6.24%.The firm's revenue for the quarter was down 8.1% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.03) EPS. On average, analysts expect that Coty will post 0.39 earnings per share for the current fiscal year.

Insider Transactions at Coty

In other news, insider Priya Srinivasan acquired 30,000 shares of the company's stock in a transaction dated Friday, August 22nd. The stock was bought at an average price of $3.84 per share, with a total value of $115,200.00. Following the completion of the acquisition, the insider owned 37,509 shares in the company, valued at approximately $144,034.56. This represents a 399.52% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Sue Nabi acquired 260,000 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were purchased at an average cost of $3.92 per share, with a total value of $1,019,200.00. Following the acquisition, the chief executive officer owned 32,127,286 shares of the company's stock, valued at approximately $125,938,961.12. This represents a 0.82% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 305,500 shares of company stock valued at $1,195,420. Corporate insiders own 6.00% of the company's stock.

Institutional Trading of Coty

Hedge funds and other institutional investors have recently modified their holdings of the stock. Janney Montgomery Scott LLC increased its holdings in shares of Coty by 270.4% in the first quarter. Janney Montgomery Scott LLC now owns 142,219 shares of the company's stock valued at $778,000 after purchasing an additional 103,828 shares in the last quarter. Compass Wealth Management LLC increased its holdings in shares of Coty by 33.2% in the first quarter. Compass Wealth Management LLC now owns 623,325 shares of the company's stock valued at $3,410,000 after purchasing an additional 155,450 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in shares of Coty by 10.5% in the first quarter. Ameriprise Financial Inc. now owns 22,346,995 shares of the company's stock valued at $122,239,000 after purchasing an additional 2,132,613 shares in the last quarter. Graphene Investments SAS increased its holdings in shares of Coty by 36.0% in the first quarter. Graphene Investments SAS now owns 518,300 shares of the company's stock valued at $2,835,000 after purchasing an additional 137,100 shares in the last quarter. Finally, Two Sigma Investments LP increased its holdings in shares of Coty by 490.7% in the fourth quarter. Two Sigma Investments LP now owns 827,903 shares of the company's stock valued at $5,762,000 after purchasing an additional 687,756 shares in the last quarter. Institutional investors and hedge funds own 42.36% of the company's stock.

About Coty

Coty Inc, together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. It operates through Prestige and Consumer Beauty segments. The company provides fragrance, color cosmetics, and skin and body care products. It offers Prestige segment products primarily through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Burberry, Calvin Klein, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lancaster, Marc Jacobs, Miu Miu, Orveda, philosophy, SKKN BY KIM, and Tiffany & Co brands.