Coty (NYSE:COTY) Shares Down 7.5% - Time to Sell?

Key Points

• Coty shares fell 7.5% on Thursday, trading as low as $2.55 before ending near $2.53, well below the prior close of $2.73.
• Analyst sentiment remains cautious: the stock carries a consensus “Reduce” rating with a $3.70 target price, and most analysts rate it a Hold while some recommend Sell.
• The company’s latest earnings showed mixed fundamentals, with a small EPS loss and revenue of $1.28 billion that slightly beat estimates, but revenue still declined 1.3% year over year and net margin remained negative.

Coty (NYSE:COTY - Get Free Report)'s stock price traded down 7.5% during trading on Thursday . The company traded as low as $2.55 and last traded at $2.5250. Approximately 2,662,488 shares changed hands during mid-day trading, a decline of 73% from the average daily volume of 9,832,479 shares. The stock had previously closed at $2.73.

Analyst Upgrades and Downgrades

COTY has been the subject of a number of analyst reports. Royal Bank Of Canada reissued an "outperform" rating and set a $8.00 target price on shares of Coty in a research report on Monday, May 4th. Morgan Stanley set a $2.50 price target on shares of Coty in a report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft cut their price target on Coty from $3.00 to $2.00 and set a "hold" rating on the stock in a research report on Monday, March 30th. TD Cowen lifted their target price on shares of Coty from $2.30 to $2.90 and gave the company a "hold" rating in a report on Thursday, May 7th. Finally, Weiss Ratings lowered Coty from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, May 13th. One analyst has rated the stock with a Buy rating, thirteen have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $3.70.

Coty Stock Performance

The stock has a 50-day moving average of $2.12 and a 200 day moving average of $2.41. The company has a quick ratio of 0.49, a current ratio of 0.82 and a debt-to-equity ratio of 0.97. The stock has a market cap of $2.22 billion, a PE ratio of -4.07, a P/E/G ratio of 0.79 and a beta of 0.99.

Coty (NYSE:COTY - Get Free Report) last released its quarterly earnings data 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 quarter in the previous year, the business posted $0.01 earnings per share. Coty has set its FY 2026 guidance at 0.330-0.350 EPS. Equities analysts predict that Coty will post 0.22 EPS for the current fiscal year.

Institutional Investors Weigh In On Coty

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada boosted its holdings in Coty by 8.2% during the 1st quarter. Royal Bank of Canada now owns 128,451 shares of the company's stock valued at $702,000 after acquiring an additional 9,700 shares during the period. United Services Automobile Association purchased a new position in Coty during the 1st quarter worth approximately $131,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Coty by 7.1% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,298,221 shares of the company's stock worth $7,101,000 after purchasing an additional 86,534 shares during the last quarter. Focus Partners Wealth acquired a new position in shares of Coty in the first quarter valued at approximately $73,000. Finally, Prudential Financial Inc. raised its holdings in Coty by 17.1% during the second quarter. Prudential Financial Inc. now owns 39,844 shares of the company's stock worth $185,000 after purchasing an additional 5,810 shares in the last quarter. 42.36% of the stock is owned by hedge funds and other institutional investors.

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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