Coty (NYSE:COTY) Shares Down 5.5% - Should You Sell?

Key Points

• Coty shares fell 5.5% to $2.485, with trading volume substantially below the stock’s average daily volume.
• Analyst sentiment remains cautious: 11 analysts rate the stock “Hold” and two rate it “Sell,” producing an average “Reduce” rating and a $3.24 price target.
• Coty’s latest quarterly revenue rose 1.3% year over year to $1.27 billion but its $0.02-per-share loss missed estimates, while the company reported a negative net margin of 10.42%.

Coty (NYSE:COTY - Get Free Report)'s stock price fell 5.5% during trading on Thursday . The stock traded as low as $2.51 and last traded at $2.4850. 1,235,201 shares were traded during trading, a decline of 87% from the average session volume of 9,315,410 shares. The stock had previously closed at $2.63.

Wall Street Analyst Weigh In

COTY has been the topic of several analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Coty in a report on Friday, August 7th. Morgan Stanley increased their price target on shares of Coty from $2.50 to $2.75 and gave the company an "equal weight" rating in a research note on Tuesday, August 25th. The Goldman Sachs Group reiterated a "neutral" rating and set a $2.60 target price on shares of Coty in a research note on Thursday, August 20th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $3.00 target price on shares of Coty in a research note on Friday, August 21st. Finally, Royal Bank Of Canada downgraded shares of Coty from an "outperform" rating to a "sector perform" rating and set a $3.00 target price for the company. in a report on Thursday, August 20th. Eleven equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Coty has an average rating of "Reduce" and an average target price of $3.24.

Coty Stock Performance

The stock's 50-day moving average price is $2.71 and its 200-day moving average price is $2.36. The company has a market cap of $2.20 billion, a P/E ratio of -3.56, a PEG ratio of 0.51 and a beta of 0.95. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.75 and a quick ratio of 0.42.

Coty (NYSE:COTY - Get Free Report) last posted its quarterly earnings data on Wednesday, August 19th. The company reported ($0.02) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.01). Coty had a negative net margin of 10.42% and a positive return on equity of 5.68%. The business had revenue of $1.27 billion during the quarter, compared to the consensus estimate of $1.19 billion. During the same period in the prior year, the firm earned ($0.05) EPS. The business's revenue for the quarter was up 1.3% on a year-over-year basis. Coty has set its Q1 2027 guidance at 0.110-0.130 EPS. Equities analysts anticipate that Coty will post 0.31 EPS for the current year.

Institutional Trading of Coty

A number of institutional investors have recently modified their holdings of the stock. WINTON GROUP Ltd bought a new position in shares of Coty in the second quarter worth $48,000. HB Wealth Management LLC bought a new position in Coty in the 2nd quarter valued at about $57,000. AlphaGrep UK Ltd bought a new position in Coty in the 2nd quarter valued at about $25,000. Three Seasons Wealth LLC raised its position in shares of Coty by 17.1% in the 2nd quarter. Three Seasons Wealth LLC now owns 91,957 shares of the company's stock valued at $199,000 after buying an additional 13,395 shares in the last quarter. Finally, Nolet Wealth Management LLC bought a new stake in shares of Coty during the 2nd quarter worth approximately $108,000. 42.36% of the stock is currently owned by institutional investors.

About Coty

Coty Inc is a global beauty company that develops, manufactures and markets fragrances, color cosmetics, skin care and body care products. Its portfolio spans prestige and mass-market beauty, with products sold through department stores, specialty retailers, drugstores, e-commerce channels and other distribution networks.

The company's brands include CoverGirl, Rimmel London, Sally Hansen, Max Factor and Bourjois, as well as prestige fragrance and beauty brands such as Gucci, Burberry, Calvin Klein, Marc Jacobs, Chloé, Hugo Boss, philosophy and Lancaster.

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