Coty (NYSE:COTY) Shares Up 4.9% - Here's Why

Key Points

• Coty shares rose 4.9% on Friday, trading as high as $2.23 after closing at $2.13 the previous day. Volume was far below average, with about 658,000 shares changing hands versus a daily average of nearly 9.8 million.
• Analyst sentiment remains cautious overall: Coty has a consensus rating of "Reduce" and an average price target of $3.70. Recent moves included target increases from Citigroup and TD Cowen, while Deutsche Bank cut its target.
• The company recently reported quarterly EPS of $(0.03) on revenue of $1.28 billion, slightly above expectations, and reiterated FY2026 guidance of 0.33-0.35 EPS. Coty also has notable liquidity and leverage pressures, with a quick ratio of 0.49 and current ratio of 0.82.

Coty (NYSE:COTY - Get Free Report)'s stock price rose 4.9% on Friday . The company traded as high as $2.23 and last traded at $2.2350. 658,171 shares changed hands during trading, a decline of 93% from the average daily volume of 9,836,514 shares. The stock had previously closed at $2.13.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Morgan Stanley set a $2.50 target price on shares of Coty in a research note on Thursday, May 7th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $8.00 price objective on shares of Coty in a research report on Monday, May 4th. Citigroup lifted their target price on Coty from $2.50 to $2.80 and gave the stock a "neutral" rating in a report on Thursday, May 7th. TD Cowen upped their price target on Coty from $2.30 to $2.90 and gave the company a "hold" rating in a report on Thursday, May 7th. Finally, Deutsche Bank Aktiengesellschaft dropped their price objective on Coty from $3.00 to $2.00 and set a "hold" rating on the stock in a research report on Monday, March 30th. One analyst has rated the stock with a Buy rating, thirteen have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $3.70.

Coty Stock Performance

The business has a fifty day simple moving average of $2.11 and a two-hundred day simple moving average of $2.45. 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 company has a market cap of $1.99 billion, a P/E ratio of -3.64, a P/E/G ratio of 0.33 and a beta of 0.99.

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

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its position in Coty by 8.2% during the first quarter. Royal Bank of Canada now owns 128,451 shares of the company's stock valued at $702,000 after purchasing an additional 9,700 shares in the last quarter. United Services Automobile Association bought a new stake in Coty during the first quarter valued at about $131,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Coty by 7.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,298,221 shares of the company's stock valued at $7,101,000 after acquiring an additional 86,534 shares in the last quarter. Focus Partners Wealth purchased a new position in shares of Coty in the first quarter valued at about $73,000. Finally, Prudential Financial Inc. boosted its stake in shares of Coty by 17.1% in the second quarter. Prudential Financial Inc. now owns 39,844 shares of the company's stock worth $185,000 after acquiring an additional 5,810 shares during the period. 42.36% of the stock is currently owned by 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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